Taking the Guesswork Out of AFE Reporting
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The document discusses the importance of cost control for oil and gas companies as access to capital tightens and the future of the industry remains uncertain. It emphasizes becoming smarter with investments to ensure the best returns through capital discipline that boosts profitability and internal rates of return. During project execution, effective cost control can be difficult as projects often change, causing under budget projects to go over budget quickly. Many companies are concerned with demonstrating competency in cost control to stakeholders.
Taking the Guesswork Out of AFE Reporting
- 4. Every Dollar Counts Cost control is now a top priority as we must not only continue to increase production, reserves and capacity, but also demonstrate discipline in managing capital and operational expenses. The answer is not to halt all spending. We must instead become smarter and more purposeful with our investments to ensure the best returns. If you can clearly and consistently demonstrate capital discipline to boost profitability per well and maximize internal rates of return, you will maintain a competitive advantage over your industry peers. 4
- 6. During the execution phase of a project, effective cost control can be difficult due to the rate at which projects often change. In the matter of just a day or two, an under budget project can go over budget, which makes it difficult to compete in a market where access to capital is getting tighter and the near future of the industry is so uncertain. If you are concerned with demonstrating competency in cost control as an organization, you are not alone. Cost Creep is Common 6
- 26. Finance/Accounting Take the Guesswork Out of AFE Reporting Executivesp.27 p.32 p.38 p.45 AFE Dashboards for: Field Supervisors AFE Managers 26
- 30. Are we monitoring costs with the scrutiny that stakeholders expect? What are the potential risks in our costs and capital expenditures? What is our budget versus the actual numbers? Are we on track to hit our numbers? If not, how much are we off? Which plays, fields, leases, and wells do we need to focus most of our attention? Where can we cut costs? Questions to ask yourself 30
- 51. LET’S GET STARTED Ready to dramatically increase your ability to control and predict AFE spend? Give Entrance a call for free on-site demo of our AFE dashboards and an initial consultation. If you need help earlier in the AFE process, we can also help you automate your manual AFE creation and approval processes with streamlined workflows. Entrance helps leading oil and gas companies buy, build and implement software and information management solutions that deliver better business results and reduce non-productive time. Other Big Data and Analytics solutions we can provide for business and engineering challenges include: • Production Reporting and Forecasting • Decline Curve Analysis • Non-productive Time Analysis • Asset High-grading • Drilling and Completions Analysis entranceconsulting.com 1-888-343-KNOW 51