GET READY FOR TOP DRIVEN TECHNOLOGY

Traditionally, geologists and engineers have been champions of new technology for volume and reserve estimation. However, we expect the next wave will be top-driven by a need for an integrated corporate business model.

An asset teams ability to “sell the project” has been a key deciding factor in the survival of a project. Little or no attention has been paid to the corporate fit.

That approach has failed and leads to a lack of focus and financial control. As globalization continues asset teams find themselves competing for funds with projects half way around the world.

It has also highlighted the need for processes and tools to standardize evaluations and management of project portfolios.

Present Value, Rate of Return, financing requirements and cash flows are often all that the portfolio manager receives. However, she will need much more to perform intelligent portfolio management.

Interactive Business Models are required to quantify portfolio risks: - What happens if crude price changes? - What if we can sign another gas contract? - What happens if the rig market tightens? - What if pipeline tariffs increase?

Plus/minus 10% on the cash flow just won’t do anymore.

Almost every E&P company we visit struggles with the same issues and we believe it will be a focus area over the following years.