Costs & Technology Consulting

S&P Global consultants understand the holistic impact of costs on upstream operations. Our consulting capabilities are underpinned by industry-leading research, insight, analysis, tools and databases. These resources empower us to develop benchmarks and build strategies to optimize CAPEX/OPEX, manage risks, design comprehensive procurement strategies, measure performance across the industry, and conduct cost audits.

S&P Global experts provide customized consulting solutions around costs to help you achieve sustainable results:

• Field development planning and cost estimation
  
  • Prospect evaluation, initial cost estimates, minimum economic recoveries and assessment of tie-ins
  • Concept selection and evaluation including, production, facility, pipeline and export route optimization
  • Calculation of project escalation and rebasing of existing estimates
  • Assessment of project cost, schedule and performance risks
  • Cost reduction initiatives to optimize development plans, increase standardization, incorporate new technologies and take advantage of market conditions
  • Detailed operations cost modelling for operations readiness and budget planning
• Cost audit and valuation
  
  • Audits of historical and development costs for cost recovery and arbitration
  • Site or data room visits to assess current condition, replacement cost, depreciated value and future liabilities for M&A due diligence and BOT projects
  • Replacement cost valuations for insurance
• Demand and supply forecasts
  
  • Market forecasts for new technologies, oil field equipment, materials, and services based on current and forecast macroeconomic scenarios and project activity, and impact assessment of key market disruptions (e.g., regulatory changes, oil price shifts)
  • Supply chain analysis to identify key supplier bottlenecks, local content availability, and optimum procurement strategy and timing
  • Procurement market intelligence programs combining demand and supply forecasts, project risk factors and opportunity dashboards
  • Investment support
  • Market and competitive strategy support
• Benchmarking
  
  • Analysis of project cost and operator performance
  • Project comparisons with actual and “should cost” benchmarks at peer, market and historical trend levels
  • Collaborative benchmarking services
• Analysis of offshore rig markets
  
  • Forecasts of supply, demand and day rates by rig type, area
  • Forecasts of wells to be drilled, by well type, water depth, area
  • Forecasts of related markets (rig repair, rig construction)
  • Expert opinion regarding contract disputes, market day rates, company projections
• Analysis and valuations of offshore vessel markets (single vessel or fleet)
  
  • Fair market values (no contract) of:
    
    • Offshore rigs
    • Platform supply vessels, anchor-handling tug supply vessels
    • ROV and dive support vessels
    • Construction vessels
    • Accommodation vessels
    • FPSOs
  • Fair market value (with contract) and future valuations of offshore rigs

Technology and broader forms of innovation are at the heart of upstream oil and gas industry efficiency and cost management aspirations. S&P Global consultants are well-positioned to support E&P organizations in their efforts in these areas. Drawing on proprietary data bases, analytical tools, and a library of internally developed best practice case studies, we advise companies on a technology program that is most appropriate for their particular circumstances and advances their broader strategic objectives.

S&P Global oil and gas technology consultants help clients navigate the increasingly complex upstream technology landscape and arm executives with robust insight necessary to make technology investment and deployment decisions for increased competitiveness.

A unique aspect of our oil and gas technology consulting practice is its association with the Upstream Technology and Innovation (UTAI) research service from S&P Global. This service provides valuable insights into technology trends and developments taking place across the E&P value chain, including how best to source, manage and advance them. It also gives S&P Global consultants an opportunity to work closely with industry-leading technology programs and business leaders to develop insights into industry technology trends.

S&P Global extends its upstream technology thought leadership position through several programs associated with its annual CERAWeek conference. The CERAWeek Technology Agora brings together senior industry technology and business executives to explore topics of timely and strategic interest, and it also highlights emerging energy innovations. In addition, the long-standing CERAWeek Energy Innovation Pioneers program recognizes those early stage energy technology companies that are demonstrating a real impact on the business, which has allowed S&P Global to develop and maintain close relationships throughout the energy startup ecosystem.

Specific areas of our team’s expertise include:

• Prioritizing technology development focus areas based on a company’s existing or target portfolio, projected future technology trends and strategic priorities
• Assessing the technology landscape to identify portfolio gaps, quantify potential business impacts and benchmark E&P technology organizations versus their peers
• Developing upstream digitalization strategies that address specific business challenges and opportunities, incorporate emerging digital technologies and related concepts, and align work practices and organizational models to ensure maximum benefit