“…However, E&P portfolio selection decision problems are particularly challenging due to the high stakes and significant consequences, and selection becomes a trade-off decision, where certain objectives are met at the expense of others (Lopes and De Almeida 2013). Achieving an optimum trade-off requires evaluating all alternative projects based on the same predefined quantitative and qualitative criteria using a systematic methodology (Lopes and De Almeida 2013).Traditional capital budgeting tools, such as benefitcost analysis, utility value, payback period, discounted cash flow, sensitivity analysis, preference theory, portfolio theory, and option theory are among those currently adopted by the industry. However, these techniques are mostly economics based and do not adequately consider other critical and strategic factors, such as social and environmental impacts, which cannot be captured by monetary valuations and in some cases not ethically acceptable, as argued by Cavallaro (2005).…”