Oilfield Supermodels

No, not THAT kind of Supermodel. Modeling was not practical early in my career. Prior to computers, manual computations would have taken too much time away from other priorities. With computers, modeling has become a tool in our toolbelt. Models allowed economics of a waterflood or creative drilling scenarios to be run digitally first, vastly improving economic planning scenarios.

Is your company struggling to achieve sufficient profitability? How could a Supermodel of your company help?

               Good: An annual budgeting spreadsheet is really a simple financial model of your company.

               Better: Using the 3-year price strip, model if it’s better to add gas or to add oil volumes with capital. Compare go forward plans with and without the divestiture of the marginal wells you now own.

               Best: Auto-create an unbiased Supermodel with forecasts that include pricing. Set accountability for staff with frequent wellbore reviews using autogenerated reports. Update your workflows to track economically driven decision making, then outsource the updating of the models to the cloud. Refine your model as new history appears.  Locate the key profitability drivers of your business.

Don’t have time to do this? Then fix your daily processes first to free up time for more strategic planning.

Conclusion: Business is challenging, but a digital twin will allow a test drive first.