Gas and Power

IHS Energy Consulting provides solutions to private and public clients around the world who are involved in the gas and power sector. Our principal advisory service--Energy Market Analysis--provides clients with independent, data-driven assessments of the key trends, drivers and future market scenarios affecting their businesses. Clients receive actionable advice for their planning, operations, investments and market entry and exit decisions.

In addition to energy market analysis, clients receive essential support in the following key areas:

• Strategy support
• Asset valuation
• Strategic consulting  
• Strategic due diligence

IHS Energy Consulting enables you to:

• Access world-class experts who combine specific knowledge with a big picture view
• Gain insight into fundamental market drivers and triggers of change
• Achieve a global and integrated perspective across fuels, industries and geographies
• Receive early warning of inflection points and deviations from past trends
• Avoid blind spots from entrenched views of the external landscape
• Develop robust strategic alternatives to manage sudden change

Learn more about our services, or contact us for an exploratory meeting.

Energy Market Analysis - Identify the trends, drivers and future energy market scenarios that directly affect your business.

See Case Study #1

Strategy Support - Make high-quality important decisions by crafting value-creating alternatives and understanding the impact of risk.

See Case Study #2

Asset Valuation - Negotiate better loans, build support for public bonds, manage your portfolios and ultimately make the most profitable financial planning decisions for your organizations. 

See Case Study #3

Strategic Consulting - Discover oil and gas growth opportunities.

See Case Study #4

Data and Information Systems Consulting - Maximize your return on investments in information systems via:

• E&P data and IT systems audits 
• Data management and executive information systems 
• Decision support systems architecture 
• Development of enabling software

See Case Study #5

Strategic Due Diligence - Obtain an independent view of markets and business environments, strategy viability and acquisition tactics and deal value, while identifying and reducing acquisition risks.

See Case Study #6

Contact us for an exploratory meeting.

Case Study #1:Where Can We Find the Cheapest Power in the World?

Challenge: A global aluminum company needed to find low-cost electricity to support a new aluminum smelting operation.

Solution: A joint IHS-client team screened over 100 countries, using criteria such as potential delivered power prices for different technologies and fuels, the local business landscape and potential synergies with the client's other global operations.

Results: The team created a prioritization list that enabled the client to garner senior management's support to pursue the three top-ranked options.

Case Study #2:Global Growth Strategy

Challenge: An aggressive coalbed methane (CBM) producer needed a strategy to increase shareholder value in the face of a limited market for its growing reserves and production.

Solution: IHS Consulting worked with senior management to present to the board of directors a wide range of growth alternatives--some that significantly challenged the current business model--and the key value drivers behind them.

Results: The company tripled its share price within two years after the board adopted the proposed two-phased strategy to develop liquefied natural gas (LNG) for local sales and expand into CBM in other countries.

Case Study #3:Asset Valuation

Challenge: A gas producer was looking to move into the power sector and wanted to understand the components of value for a CCGT.

Solution: A joint gas and power team drew on proprietary IHS research to assess the drivers of value for power generation and the expected evolution and sensitivity for each driver. The team also studied potential integration benefits for such a move.

Results: The client was able to understand the benefits and risks associated with this diversification. In particular, the IHS team helped the client understand its potential advantages.

Case Study #4:Hydrocarbon Sector Benchmark Analysis

Challenge: With over 120 countries competing for E&P opportunitiesin Greenland, the Greenland Bureau of Minerals and Petroleum needed assistance setting up fiscal terms that would attract foreign investment but capture maximum receipts for the state.

Solution: IHS Consulting employed a variety of methodologies to determine the top eight competitor countries and compared their fiscal terms using defined criteria to those of Greenland.

Results: As a result of the international benchmarking analysis, IHS Consulting recommended fiscal terms for Greenland's government that guaranteed the maximum government take achievable while providing investors attractive and competitive returns.

Case Study #5:Data and Information Systems

Challenge: A group of clients was looking to understand the potential for price arbitrage in the global LNG markets and the potential benefit of flexibility in contractual arrangements.

Solution: The gas team developed a proprietary, stochastic model which assessed the potential impact on a monthly basis of uncertain risk factors around the world. This included a diverse set of variables such as outage rates, weather patterns and factors impacting gas demand for power.

Results: The IHS team was able to calculate the potential impact on revenue of flexibility terms for participants in the LNG business. This enabled clients to assess the value of LNG contracts and the upside potential from global market uncertainty.

Case Study #6:Evaluating a Russian Opportunity

Challenge: A North American independent E&P client needed help to evaluate its first opportunity in Russia.

Solution: IHS Consulting leveraged the IHS CERA flagship advisory service, Russian and Caspian Energy, to provide both technical and commercial advice.

Results: The client was able to make faster, less-risky decisions by gaining insight beyond simple compliance into matters such as key business drivers, above-ground risks and execution concerns affecting the opportunity's value-creating potential.