Business/economics

Integrating Technology and Organizational Alignment for a Portfolio Implementation

One E&P company has found that implementing and sustaining a portfolio process require technical solutions and application of best practices for three critical elements: production forecasting, project modeling and economic evaluation, and portfolio management and decision making.

jpt-2017-12-187162.jpg
Fig. 1—When capital is a limited resource, a bottoms-up approach to budget proposals does not provide a clear view to the optimal suite of projects to fund. CAPEX=capital expenditure.

Choosing the best projects to fund is easy. The true challenge is weighing the complexities of the projects that are at the threshold for funding in a capital-constrained environment. One exploration-and-production (E&P) company has found that implementing and sustaining a portfolio process require technical solutions and application of best practices for three critical elements: production forecasting, project modeling and economic evaluation, and portfolio management and decision making.

Introduction

When capital is a limited resource, a ­bottoms-up approach to budget proposals does not provide a clear view to the optimal suite of projects to fund. Fig.

×
SPE_logo_CMYK_trans_sm.png
Continue Reading with SPE Membership
SPE Members: Please sign in at the top of the page for access to this member-exclusive content. If you are not a member and you find JPT content valuable, we encourage you to become a part of the SPE member community to gain full access.