Portfolio Management for Strategic Planning and Operational Optimization

Abstract

Portfolio management has become a mainstream discipline to support investment decisions and capital allocation plans for the oil and gas industry. With more than 70% of the top 50 oil and gas producers companies in the world applying it, the scope and reach of the subject is of vital importance. The aim of this study is to understand how portfolio management is applied in strategic planning and operational optimization, and how the combination of these exercises allows the strategic guidelines to permeate operational decisions. The first part of the study covers the best practices for the application of portfolio management when tackling strategic planning. Which are the critical business issues the exercise resolves, how to model the corporate long-term direction through measurable KPIs, and what key objectives companies pursue when allocating strategic capital. The second section provides some specific examples of ways in which portfolio management theory can resolve operational issues such as rig scheduling optimization, key human resources constraints, and facilities management optimization. The third section analyzes how the output of both exercises logically merges into a solid operation aligned with the company's strategy. The main outcome of this analysis is the definition of a framework that defines the most efficient way to materialize long-term strategic directions as day-to-day operational guidelines, creating an efficiently aligned organization. Efficiency of the planning process will be explored.

Choosing water shutoff technologies for fractured reservoirs of the White Tiger field

“…One of the important reserves to eliminate the objective reasons for oil production decline is the implementation of geological and technical measures aimed at increasing oil recovery from reservoirs and reducing water production [1][2][3][4][5][6].…”

Microbiological and physicochemical treatment of oil to increase field resource extraction

“…The problem of enhanced oil recovery is one of the most important and complex problems of scientific and technological progress. A successful solution to this problem is a basic prerequisite for meeting oil needs, but this is only possible on the basis of a high level economy, as well as the developed production in many industries [1][2][3][4][5][6][7][8].…”