Resolving the Nightmare of Performance Reporting and Portfolio Management -- A Web Based Approach
- Brad Nickle (The Strickland Group, Inc.) | Richard F. Strickland (The Strickland Group, Inc.) | Dwayne Christopher Purvis (The Strickland Group, Inc.)
- Document ID
- Society of Petroleum Engineers
- SPE Hydrocarbon Economics and Evaluation Symposium, 3-5 April, Dallas, Texas
- Publication Date
- Document Type
- Conference Paper
- 2005. Society of Petroleum Engineers
- 2 in the last 30 days
- 181 since 2007
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Many papers have been written concerning the energy industry's need to become more efficient in its methodologies and operations.The shrinking qualified workforce and global economic factors are placing further pressures on the energy sector to streamline processes.This requirement extends itself to all phases of the energy industry, especially with multi-disciplinary multi-organizational teams. [1-5]
For the past 5 years a major private equity player has successfully exploited the digital oil field to streamline its asset management processes.This company manages its 2.3 billion dollar oil and gas portfolio with a staff of 5 professionals by utilizing a web-based portfolio management tool.This same staff of 5 annually approves over $100 million in AFE's.
Since inception this web-based application has been successfully deployed to manage 36 different partnerships across the United States.This system has benefited by the proactive input of over 300 industry professionals throughout the application development and deployment cycles.The software currently consists of over 60 different analytical tools to analyze the performance of a portfolio.
This paper examines the use of web based technologies to build a portfolio management system.There are many pitfalls and challenges to overcome to ensure the success of an application designed to monitor performance and measure value.From specifications through rollout to E & P companies aspects of design and deployment are thoroughly explored.
Professionals in the oil and gas industry spend inordinate amounts of time and effort to gather, organize, format, and synthesize data into useful reports for subsequent analysis. Precious efforts, which should be directed towards proactive actions to improve value, are often diverted to lesser-valued services. A web-based portfolio management tool can assist E&P companies in adding value to a project while at the same time keeping investors, partners or managers informed as to the performance of a project or an entire portfolio.
In most circumstances, the operator is the only party in possession of data required to understand and evaluate a project.A mandate or requirement of the operator to provide the necessary production and financial data to investors/lenders can be counter productive to the overall objectives of the project.The operator's primary focus should be on higher valued services (effective operations and adding value to a project) not on data assimilation. Constraining an operator with excessive reporting requirements is a good way to ensure that project performance objectives are missed.
Conflicting requirements of timely analysis versus a focus on higher valued services makes the prospect of portfolio management rather bleak.Many have attempted to solve this problem with excessive man power and herculean efforts.Others simply settle for analysis which is old and outdated. Traditional efforts usually involve attempts to utilize spreadsheets to communicate and track productivity.However, the limitation of spreadsheet technology to track and manage a portfolio becomes evident once an organization begins to handle multiple projects.
|File Size||1 MB||Number of Pages||16|