Peer Group Benchmarking

BACKGROUND

Exploring for oil and gas is at the core of the E&P business. Measuring and comparing exploration performance between E&P companies, however, is a challenge as there are a wide number of methods available and because such analysis requires large amounts of data. Stand-alone, single benchmarks will seldom reveal the complete picture of a company’s ability to explore for oil and gas.

APPROACH

In collaboration with the client the project team established a relevant peer group of companies. Subsequently, we developed a rich data set combining data from our global upstream database UCube with official company-reported data from our databases. The project team was then able to quickly come up with a broad set of benchmarks highlighting several aspects of exploration performance and activity. This included detailed annual data on drill out volumes, reserve replacement ratios, exploration spending, number of wells drilled, development in acreage positions, signature bonuses, and other exploration-related data.

RESULT

The project delivery consisted of an extensive presentation package including detailed analysis of exploration performance with supporting data sets of more than 30 peer group companies in the E&P sector. Combined with in-depth discussions and workshops, the client was able to get a broad perspective on their relative exploration performance compared to their peers. The project also enabled the client to look into performance and exploration strategies of other companies and compare exploration results against their peers.

Comparing Annual Bookings of Reserves to the SEC with Annual Drill Out Volumes