E&P Economics, Strategy, Oil and Gas Property Valuations, Reserve Quantification and Classification.

• 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. 

  • 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).

  • 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.

  • 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.

• 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.

Expertise in the ongoing transformation of the oil and gas industry due to rapid advances in policy and in technology.

• 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).

• 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.

• 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

Oil and Gas Supply/Demand Fundamentals

• 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.)

• Link to Global Oil Supply/Demand Fundamentals Page

  • 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.

• Link to US Natural Gas Supply/Demand Fundamentals Page

  • 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.

  • 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.