Control, forecasting, risk mitigation,
governance and optionality:
the keys to competitive advantage in a dynamic and financially constrained industry
Scenario planning, efficiency and governance
The E&P industry is transforming from drill-and-deliver to technology-enabled productivity to effectively do much more with less. KPIs are no longer based on production and reserves but on the effectiveness of the business to deliver. Project spend overruns and delays are no longer to be tolerated. Governance, control, scenario modelling and dynamic portfolio analysis are the tools that help tomorrow’s successful E&P company to shape strategy, respond to rapid change and provide accountability to stakeholders..
Risk management in the E&P industry will shift from the traditional subsurface resource knowledge to managing an increasingly complex energy system. Navigating a future with more uncertainty and fewer sources of growth will require a focus on agility. Driving up production while managing capital costs, spending and labour costs will require effective visualisation and analysis of key corporate portfolio data to monitor operations, look back and learn, map future outcomes and rapidly respond to change.
Portfolio approach to national resource management
Resource regulators need to adopt a portfolio approach to the assets being exploited to ensure effective oversight of all major projects, the monitoring of progress against plan, the efficient deployment of capital and the optimum return to the state. Effective portfolio oversight enriches the dialog with partners, facilitates optionality in the project approval process, enables the regulator to understand future outcomes against likely scenarios and to model their respective impact on state revenue.