Oil & Gas, Energy and ResourcesThe oil and gas, energy and resource sectors are particularly appropriate for financial and economic modelling, especially where risk and uncertainty is concerned. Typical questions revolve around:

  • Cost estimation and budgetting (e.g. capex and opex uncertainty, incl. event risks)
  • Optimal decision-making, real options and valuing flexibility (e.g. appropriate forms of subsurface testing, value of information analysis and Bayesian techniques)
  • Exploration and discovery risk (incl. multiple prospects within a licence and dependencies)
  • Portfolio sizing and optimisation (e.g. optimal sizing of for E&A portfolios, aggregate reserves calculations)
  • Drilling uncertainty, drill program planning and optimisation of portfolios of drilling projects e.g. reflecting uncertainties in schedules, discoveries, and finance and resource constraints
  • Volumetric uncertainty estimation
  • Capturing dependencies e.g. between porosity and oil saturation in calculations
  • Mapping volume to non-linear cost curves (e.g. switching engineering designs according to volume)
  • Production forecasting and modelling (e.g. decline modelling, operational breakdown possibilities)
  • Price forecasting
  • Integrated business cases and valuation modelling: volumetrics, capex, opex, production, profits, taxes
  • Schedule risk analysis and integrated cost-schedule risk modelling
  • Incentive scheme optimisation e.g. design of fiscal regimes
  • Business cases, valuation, and uncertainty modelling of new technologies (oil recovery, unconventional gas, wind, bio-fuels etc)
  • Financing issues (e.g. debt modelling, project finance, supporting of equity raises, use of non-conventional financing techniques)
  • Tax calculations and optimisation

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