Despite the rapid growth in unconventional resource identification and extraction, exploration continues to be crucial for discovering the economic resources needed to meet the global demand for energy. This talk will describe what I have learned are important attributes of an economically successful exploration program. Many of these learnings are applicable for ensuring success in innovation as well.

Historically, more companies have failed than have made a profit through exploration. Critical criteria for success include:

1. Excellent technical work that results in multiple interpretations consistent with all available data.
2. Processes and tools that lead to the objective quantification and understanding of the probability of success (and failure) for each exploration opportunity.
3. A relentless focus on learning from every success and failure. When applied to the individual geoscientist, it builds intuition over time that adds real value and should be listened to. It also builds corporate institutional memory and learning leading to better decision making.
4. Building a team(s) of geoscientists, engineers and negotiators that are passionate about seeking out and incorporating new ideas. A high performing team of people who are curious, open minded critical thinkers who love solving mysteries and creating value.
5. A deep understanding of country oil and gas financial regulations and models. Understanding country culture can be differentiating for ultimate financial success for company and country.
6. Strategic alignment and commitment to exploration by the CEO and Board of Directors with an understanding of risk, reward, and what it takes to be successful in exploration.
7. Leadership. Passion, vision, processes and decisions that are made knowing that we really don’t know.

My talk will emphasize these points and more by reference to studies, experiences and observations made throughout my career, both within and leading exploration and innovation. I will share examples and stories of successes (such as the Tamar and Leviathan discoveries offshore Israel) and failures which can be applied to any industry where a deep understanding of risk and reward is important for personal and financial success.