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.
- 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
- 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
- Utilizing deep technical expertise, Sproule 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 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 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