Originally Published on: SpendEdge |Overview of Portfolio Analysis for Oil and Gas Companies

In the current lower-for-longer oil price environment, the intricate task of balancing production, investments, and returns poses significant challenges for oil and gas companies. Industry leaders are persistently striving to attain the right equilibrium concerning geographies and resource types. The fundamental question revolves around identifying a portfolio of resources that can deliver optimal results across a diverse range of price scenarios.

Amidst higher shareholder expectations and volatile oil prices, oil and gas companies recognize the paramount importance of effective business portfolio analysis. However, given the abundance of narratives and tools in the market, conducting a meaningful portfolio analysis becomes a complex endeavor. Consequently, companies in this sector are compelled to adopt advanced business portfolio analysis techniques. Utilizing a comprehensive portfolio analysis tool empowers oil and gas companies to optimize their portfolios and align with market evaluation methodologies amid prevailing uncertainty.

At SpendEdge, we acknowledge the pivotal role of effective portfolio analysis in business strategy. To aid companies in thriving within the competitive marketplace, our team of experts has outlined four significant benefits of portfolio analysis that can maximize ROI and address competitive pressures.

Key Advantages of Effective Portfolio Analysis

Benefit #1: Informed Decision Making Enhanced portfolio management facilitates improved business decisions. Portfolio analysis empowers oil and gas companies to gain visibility from both strategic and tactical perspectives. Understanding past project metrics simplifies predicting future resource utilization and identifying non-contributing resources.

Benefit #2: Risk Reduction and Profit Maximization Business portfolio analysis aids in reducing or avoiding exposure to various risks, encompassing governance, financial, and resource utilization. Early identification of non-contributing projects enables companies to mitigate risks promptly. Furthermore, establishing an accountability framework enhances effective risk management.

Benefit #3: Resource Maximization Portfolio analysis supports oil and gas companies in optimizing their resources and reducing exploration costs. It enables the monitoring of demand and resource redeployment, ensuring efficient resource utilization and skill profile management.

Benefit #4: Stakeholder Value Demonstration Effective portfolio management showcases value to stakeholders by providing access to relevant data without inundating them with irrelevant information. Greater transparency leads to increased stakeholder appreciation and confidence in project execution and results.

SpendEdge Services SpendEdge facilitates the procurement of portfolio analysis services and offers comprehensive insights on vendors conducting portfolio analysis. Our reports evaluate vendor performance and technology utilization, empowering companies to assess supplier capabilities and navigate market changes effectively.

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