
Typical clients, include:
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Producers: valuation, reserves, costs, fiscal terms, portfolio optimization, risked
economic analysis, performance benchmarking, country risk
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Service firms: product development, new product launches,
competitor analysis, market sizing and growth
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Private Equity firms/Family Offices:
oil and gas property valuations, market analysis, oil and gas operational
expertise, access to drilling and operations experts,
in-depth analysis of general industry trends, including well inventory
levels, activity modeling, lease valuations
About Us |
Bill Severns, founder and managing partner of the Energy
Consulting Group, on what differentiates ECG
- We know the E&P
industry: We have experience in all phases of the
upstream industry, including exploration, major project
developments, market fundamentals,
and
new technology development and
deployment.
- Proven
Winners: our consultants apply the techniques, skills
and experiences learned while working for acknowledged leaders in
business and E&P strategy, such as, Bain, Cambridge Energy Research Associates (CERA) and other
leading firms.
- Independence: we have no agenda other than
delivering the best strategies for our clients.
- Practicality: we believe a key and often
overlooked component to strategy development is practicality, so
our consultants factor implementation realities into the
strategy crafting process.
- Rigorous, fact based analysis: our consultants
don't blindly accept conventional wisdom.
They investigate and analyze until they have a fact base to support
their insights and recommendations.An example is our global oil
field database, which describes over 2200 major oil and gas
projects from around the globe that have been or are being
developed. We believe our North America frack and rig market analytical tools to
be among the best in the industry, and allow us to help guide our
clients through the ups and downs of those markets.
- Tool kit: we use a variety of analytical tools to provide
valuable insights. These include, but are not limited to, an extensive
proprietary database of well and lease costs developed through our work for both
oil and gas companies and private equity firms, and our in-house economic and
decline curve analysis tools, which we believe to be among the best in the
business, and which we use extensively for reserve determination, project/well
economics and asset valuation.
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Principal
William
Severns
Bill is the founder and managing director of The Energy Consulting Group. As a
senior director at the Cambridge Energy Research Associates (CERA), and while at Bain &
Co., he successfully guided strategy efforts in the oil and gas and other industries for firms
ranging in size from start-ups to Fortune 500 firms. Prior to obtaining an MBA
from MIT, he was an
engineer and engineering manager for ARCO, where he
initiated and led a wide range of projects in the North Sea
(One &
Two),
the front range of the US Rockies
(coal bed
methane), and in Indonesia
(Offshore
Bali).
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E&P Economics,
Strategy, Oil and Gas Property Valuations, Reserve Quantification and
Classification.
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Economic Valuation
Assessment Lens-EVAL is our proprietary, industry
compliant,
economic analytics platform, which we developed because we
wanted flexible, easy-to-use tool to evaluate and cross compare the many different investment
opportunities in the exploration and production segment of the oil and
gas business.
The analytical engine is integrated with the R statistical/graphics
program to provide access to industry
leading statistical tools for, among other purposes, performing stochastic
modeling, and Monte Carlo simulations.
After all, some call shale plays
statistical plays, and the integration of R and EVAL has proved insightful for this
very reason.
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We have used EVAL to run innumerable
evaluations of oil and gas investments of all types,
including: light, tight oil prospects;
shale gas wells; deepwater projects; LNG installations; and oil sands investments. Also integrated into
the coding are modules to evaluate non-North American opportunities,
such as those being developed under production sharing contracts (PSC).
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Other uses have
included determining minimum purchase/sales prices for A&D,
modeling forward production profiles for investment analysis,
incremental economics to evaluate the efficacy of introducing new
technologies, and incrementally comparing investing in different asset
types to determine how best to allocate limited capex budgets.
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Because of the flexible architecture used to
craft the analytical engine, we can easily modify it for the specifics
of any upstream oil and gas situation.
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Cost and
Well Performance Database Our economic analyses for clients
has
generated a broad and deep database of cost and well performance
for all E&P settings, but especially for the onshore
North American nonconventional sector. Here our data ranges from the earliest
days of the Barnett shale play, to the most recent multiwell,
multi-horizon pads in the
Delaware Basin.
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Expertise in the
ongoing transformation of the oil and gas industry due to rapid advances in
policy and in technology.
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Carbon Capture, Utilization and
Sequestration (CCUS) ECG has extensive experience
in assessing carbon capture and in evaluating carbon sequestration
opportunities. We have built reservoir models for CO2 sequestration and
have prepared and presented the economics for several sequestration
projects. The economics incorporate the cost for new wells, well
refurbishment, surface facilities, pipelines, the cost of CO, as well as
revenue from state and federal tax credits. This experience has allowed us to upgrade
EVAL to reflect the costs of carbon, if appropriate, on a produced barrel or
produced mcf basis, as well as integrating the value of carbon
mitigation strategies, including carbon offsets, CO2 tax credits and
carbon sequestration. This upgrade reflects the current policy status
quo regarding 45Q federal tax credits, and the current technological
state-of-the-art involved in the capture, transportation, and
sequestration of CO2, including emerging technologies such as direct
air capture (DAC).
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Frack_It is our
proprietary upstream activity assessment tool/database. Frack_It gives us in-depth
insight into the onshore North American drilling and fracking markets
because it allows us to reasonably estimate activity as a function of
oil and gas prices (and by extension for all manner of other oil field
services and technologies, including coiled tubing, completion rigs,
sand, trucking, etc.) Uniquely amoung such approaches, we have
grounded it in the economics of the industry using EVAL.This allows us
to not only forecast activity in the aggregate, but for over 50
individual shale gas and light, tight oil plays
in both the US and Canada. The database is reflects our access to
well files for fraced wells that includes wellbore schematics,
directional surveys, AFE and "as spent" costs, drilling histories,
completion summaries, which contain the activity logs describing the
fracing operations for these wells. A
small sampling of this information is located here, and a sample
frack log,
which presents details on injected volumes, pressures, rates,
perforation intervals, etc. is presented here.
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Intelligent Oil Field (IOF) While the Senior Director overseeing
research for new oil field technologies at the Cambridge Energy Research
Associates (CERA), Mr. Severns led the conceptual thinking and research
for the
Intelligent Oil Field concept (also called
the Digital Oil Field of the Future
(DOFF). He has been
interviewed by
Offshore Engineer, as well as the
Wall Street Journal,
Financial Times and
AP news services about the IOF, and continues to stay abreast of
how this concept has evolved over the years, and how it is currenlty being
applied. For some examples of the intelligent oil field in action,
please go to
this link
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Oil and Gas
Supply/Demand Fundamentals
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US
Nonconventional Drilling/Completion Activity Portal- Data and
information includes, rig
counts, production levels, and activity maps. Innovative use of our
web based 3D graphics tool more easily and conveniently presents this market
data by play.
(For
those who might be interested, here are some other web based 3D examples
that we have created to assist our clients.)
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Link to Global Oil Supply/Demand Fundamentals Page
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Key to our ability to differentially perform
fundamentals analysis, especially for oil is
our project database,
in which we track major E&P projects from across the globe that we
believe will contribute materially to oil supply. The database currently contains
over
2300 projects covering a 20 year span, and includes where, when, who,
type of project, oil and gas production profile, onshore/offshore,
water depth, cost, and type of oil.
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Link to
US Natural Gas Supply/Demand Fundamentals Page
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Topics covered
include role of shale gas in the US supply story, growth of exports,
increasing use of nat gas in the power sector, etc.
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Emerging Demand
Areas of Potential Significance - For example, we
have investigated the demand implications
of the growing use of methane as a fuel for reusable rockets by the likes of SpaceX
and BlueOrigin, which based on comments by Mr. Elon Musk, has the
potential to be as significant a contributor to demand for US
natural gas as the emergence of the LNG export industry. See
Methane use in Starship, the next generation rocket being developed
by SpaceX in Boca Chica, TX. for more information.
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