Consistent Methodology Drives Effective Capital Allocation
A national E&P company with assets across the world wanted to create a consistent methodology for evaluating upstream opportunities based on volumetric analysis in order to more effectively allocate capital to support the growth of reserves and drive financial results.
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Project Highlights
- Provided best practices for deterministic and probabilistic volumetric analysis
- Created a framework to optimize global investment opportunities
- Translated volumetric analysis into investment decision criteria to upstream teams
- Connected deep technical expertise with business planning
Challenges:
The client was seeking external expertise to develop a consistent framework and methodology to evaluate upstream opportunities based on volumetric analysis
As a global E&P company, the client wanted more consistency in evaluating opportunities across their upstream teams to ensure a common approach to resource management, assessing resource volumes and maturity
Exploration leadership also wanted to introduce best practices for volumetric analysis, developed to accommodate the unique needs of their organization
As a global E&P company, the client wanted more consistency in evaluating opportunities across their upstream teams to ensure a common approach to resource management, assessing resource volumes and maturity
Exploration leadership also wanted to introduce best practices for volumetric analysis, developed to accommodate the unique needs of their organization
Solutions:
Utilizing deep technical expertise, Sproule ERCE developed a decision tree analysis tool to assess assets
The model was designed to support both probabilistic and deterministic analysis throughout the lifecycle of an asset.
The model introduced best practices for using both probabilistic and deterministic methodologies
Sproule ERCE experts worked with the client onsite to tailor the model for the client’s specific requirements.
The model was designed for multiple asset types ranging from conventional to unconventional
The model was designed to support both probabilistic and deterministic analysis throughout the lifecycle of an asset.
The model introduced best practices for using both probabilistic and deterministic methodologies
Sproule ERCE experts worked with the client onsite to tailor the model for the client’s specific requirements.
The model was designed for multiple asset types ranging from conventional to unconventional
Values:
The organization was able to implement a robust framework for volumetric analysis to ensure consistency and optimize capital investment
The model enabled the organization to assess decisions and possible consequences for business planning purposes
The model also provided more junior staff a framework to support their evaluations
Best practices were introduced across all global asset teams
The model enabled the organization to assess decisions and possible consequences for business planning purposes
The model also provided more junior staff a framework to support their evaluations
Best practices were introduced across all global asset teams