We have deep experience
with the unique risks and challenges
of the ENERGY INDUSTRY
Portfolio Decisions had its origins in the oil and gas industry, and that industry represents the biggest part of our portfolio. Our consultants all have extensive oil and gas backgrounds. We have worked with IOCs, NOCs, independents large and small, start ups, drilling funds, and investment firms. We know the business technically; we have deep understanding of its environment; and we thoroughly understand the culture of many companies in the industry. Portfolio Decisions staff is uniquely qualified to model and analyze companies in the industry and communicate with the technical and decision making staff as peers.
Some of the oil and gas portfolio issues that we regularly address include:
DEFINING STRATEGIC GOALS
Balancing across different measures: such as production and economic growth with steady reserves growth, value creation and capital efficiency.
Balancing across different time frames: such as near term cash flow against long term growth, near term production against mid-term reserve growth, near term debt against long term value.
Balancing across different business units: such as the needs and goals of exploration, production, mid-stream, refining, marketing, and shipping companies within a corporation
MANAGING RISK
Dealing with the unique risks associated with the oil and gas industry, including reserve risk and size, mechanical risk, delays, political risk, and market risk, to name a few.
Testing sensitivities to possible project risking and reserve size bias among projects and prospects.
Testing pricing scenarios, particularly those that include changes in the relationship between oil and gas prices.
MANAGING INVESTMENT DECISIONS
Making sense of the unique challenges associated with modeling and analyzing resource and other unconventional plays.
Finding the right balance between projects in tax regimes and in PSCs.
Rationalizing assets to determine which to fund and which to divest.
Assessing M&A opportunities.