SCENARIO PLANNING IN ALASKA

Robert A. Winfree, Ph.D.U. S. National Park Service

From Williams, Szaro and Shapiro. 2007

Which Tool for the Job?

Scenario Planning in Alaska

Five Step Process

1. Frame the Issue2. Assess Information3. Develop Scenarios4. Take Action5. Monitor Changes

What is the future of energy development,

resource extraction, and associated support

activities on Alaska’s North Slope and adjacent seas through the year 2040?

Forecast Planning One Future

Scenario Planning Multiple Futures

Scenarios overcome the tendency to predict, allowing us to see multiple possibilities for the future

Scenario Planning vs. Forecasting

What we know today

+10%-10% Uncertainties

Global Business Network (GBN) -- A member of the Monitor Group Copyright 2010 Monitor Company

Diverse Scenario Drivers

• Resource Demand• Resource Availability• Economics• Infrastructure• Environmental Sensitivity

Inclusive Scenario Planning

What Does The Future Hold?

Exploring Scenarios

Planning From ScenariosRobust: Pursue only those options that would work out well (or at least not hurt you too much) in any of the four scenarios

OR

Bet the Farm / Shaping: Make one clear bet that a certain future will happen — and then do everything you can to help make that scenario a reality

OR

Hedge Your Bets / Wait and See: Make several distinct bets of relatively equal size

OR

Core / Satellite: Place one major bet, with one or more small bets as a hedge against uncertainty, experiments, and real options

Hedge Your Bets

Hedge Your Bets

Hedge Your Bets

Hedge Your Bets

Core

RobustSatellite

Satellite

Bet theFarm

Exposed ice lens in active thermokarst

↑

TAPS – Trans Alaska Pipeline System Dalton Highway

Questions?

Planning From ScenariosRobust: Pursue only those options that would work out well (or at least not hurt you too much) in any of the four scenarios

OR

Bet the Farm / Shaping: Make one clear bet that a certain future will happen — and then do everything you can to help make that scenario a reality

OR

Hedge Your Bets / Wait and See: Make several distinct bets of relatively equal size

OR

Core / Satellite: Place one major bet, with one or more small bets as a hedge against uncertainty, experiments, and real options

Hedge Your Bets

Hedge Your Bets

Hedge Your Bets

Hedge Your Bets

Core

RobustSatellite

Satellite

Bet theFarm