Maximize your competitiveness at the corporate or asset level
As the oil and gas industry adapts to the foreseeable low oil price future, controlling costs and using technology to maximize efficiency and unlock new resources have never been more important. With revenues falling much faster than costs since 2014, oil and gas producers are looking for innovative ways to improve the efficiency of operations of existing fields and the way they design, build and operate new projects. Standing still is not a long-term viable option and, therefore, operators are seeking ways to produce more for less through rigorous continuous improvement, application of new technologies and selecting the most economic projects in their portfolios.
IHS Markit experts can help provide you with the transparency you need to manage both CAPEX and OPEX costs, harnessing both market opportunities and advances in technology to gain a competitive edge. We provide tailored consulting studies or customized client reports on:
Field development planning: Applying the right concepts and technologies to maximize value
Cost estimation: Using the latest market prices, supply chain availability and local knowledge to ensure realistic cost assessments during the early project stages
Audits and reviews: Ensuring that estimates and project valuations are comprehensive and achievable within current market conditions
Supply chain analysis: Providing a deep understanding of suppliers, input costs and how demand will affect future pricing, investment, and market and competitive strategy support
Project performance benchmarking: Analyzing projects cost and performance to compare with peers and industry standards
Analysis of offshore rig markets: Providing supply/demand and activity forecasts
Analysis and valuation of offshore vessel markets: Conducting fair market value and future valuations of offshore rigs
Technology consulting: Assisting with R&D strategy, competitor analysis, best practices, benchmarking
IHS Markit consultants understand the holistic impact of costs on upstream operations. Our consulting capabilities are underpinned by industry-leading research, insight, analysis, tools and databases. These resources empower us to develop benchmarks and build strategies to optimize CAPEX/OPEX, manage risks, design comprehensive procurement strategies, measure performance across the industry, and conduct cost audits.
IHS Markit experts provide customized consulting solutions around costs to help you achieve sustainable results:
Field development planning and cost estimation
Prospect evaluation, initial cost estimates, minimum economic recoveries and assessment of tie-ins
Concept selection and evaluation including, production, facility, pipeline and export route optimization
Calculation of project escalation and rebasing of existing estimates
Assessment of project cost, schedule and performance risks
Cost reduction initiatives to optimize development plans, increase standardization, incorporate new technologies and take advantage of market conditions
Detailed operations cost modelling for operations readiness and budget planning
Cost audit and valuation
Audits of historical and development costs for cost recovery and arbitration
Site or data room visits to assess current condition, replacement cost, depreciated value and future liabilities for M&A due diligence and BOT projects
Replacement cost valuations for insurance
Demand and supply forecasts
Market forecasts for new technologies, oil field equipment, materials, and services based on current and forecast macroeconomic scenarios and project activity, and impact assessment of key market disruptions (e.g., regulatory changes, oil price shifts)
Supply chain analysis to identify key supplier bottlenecks, local content availability, and optimum procurement strategy and timing
Procurement market intelligence programs combining demand and supply forecasts, project risk factors and opportunity dashboards
Market and competitive strategy support
Analysis of project cost and operator performance
Project comparisons with actual and “should cost” benchmarks at peer, market and historical trend levels
Collaborative benchmarking services
Analysis of offshore rig markets
Forecasts of supply, demand and day rates by rig type, area
Forecasts of wells to be drilled, by well type, water depth, area
Forecasts of related markets (rig repair, rig construction)
Expert opinion regarding contract disputes, market day rates, company projections
Analysis and valuations of offshore vessel markets (single vessel or fleet)
Technology and broader forms of innovation are at the heart of upstream oil and gas industry efficiency and cost management aspirations. IHS Markit consultants are well-positioned to support E&P organizations in their efforts in these areas. Drawing on proprietary data bases, analytical tools, and a library of internally developed best practice case studies, we advise companies on a technology program that is most appropriate for their particular circumstances and advances their broader strategic objectives.
IHS Markit oil and gas technology consultants help clients navigate the increasingly complex upstream technology landscape and arm executives with robust insight necessary to make technology investment and deployment decisions for increased competitiveness.
A unique aspect of our oil and gas technology consulting practice is its association with the Upstream Technology and Innovation (UTAI) research service from IHS Markit. This service provides valuable insights into technology trends and developments taking place across the E&P value chain, including how best to source, manage and advance them. It also gives IHS Markit consultants an opportunity to work closely with industry-leading technology programs and business leaders to develop insights into industry technology trends.
IHS Markit extends its upstream technology thought leadership position through several programs associated with its annual CERAWeek conference. The CERAWeek Technology Agora brings together senior industry technology and business executives to explore topics of timely and strategic interest, and it also highlights emerging energy innovations. In addition, the long-standing CERAWeek Energy Innovation Pioneers program recognizes those early stage energy technology companies that are demonstrating a real impact on the business, which has allowed IHS Markit to develop and maintain close relationships throughout the energy startup ecosystem.
Specific areas of our team’s expertise include:
Prioritizing technology development focus areas based on a company’s existing or target portfolio, projected future technology trends and strategic priorities
Assessing the technology landscape to identify portfolio gaps, quantify potential business impacts and benchmark E&P technology organizations versus their peers
Developing upstream digitalization strategies that address specific business challenges and opportunities, incorporate emerging digital technologies and related concepts, and align work practices and organizational models to ensure maximum benefit
IHS Markit conducts long-term technology review for BP
Vice President, Upstream Oil & Gas Research and Consulting, IHS Markit
Vice President – Upstream Energy, IHS Markit
Oscar Abbink, Ph.D.
Director – Upstream Energy, IHS Markit
Principal Consultant – Upstream Energy, IHS Markit