Oil and gas production companies make money based on on their skills in identifying a portfolio of properties and utilizing technologies to discover, produce, and sell oil and gas produced from those properties in an optimal manner.   Portfolio management allows a company to present the performance of all its producing properties and exploration targets in a standardized way.   Business metrics such as earnings, production volumes, net cash flow, and reserves additions can be balanced to obtain a maximum likelihood of successful execution of the overall business plan of the company.   Fluctuations in the in the market can be evaluated statistically so that hedges, trades and options can be evaluated in a quantitative sense.  Cash flow can be understood so that the true value of each property can be determined from its INTERACTION with all other properties in the portfolio.  The efficient frontier (optimal risk/reward position for the business plan) of the portfolio can then be determined and business strategies determined.  A property producing critical cash for exploration plays may be valued considerably higher than the "book value" determined by an audit of its remaining proven and probable reserves. Correspondingly, a property of high audited value may be a tremendous burden to the overall portfolio, and consequently may carry a substantially lower valuation.  

Portfolio Management Software and Vizualization System:  CES has significant industry experience with the combination of portfolio management and enhancements to production capabilities for the largest international oil companies in the world.   We founded and operate the industry-leading, Lamont Portfolio Management consortium at Columbia University.  The consortium is led by the top-ranked portfolio planner in the industry.   The consortium team developed the Portfolio Management Software and Visualization System.   The Lamont/Howell software evaluates the interdependence of all the company's production properties, exploration opportunities, and merger/acquisition targets simultaneously and provides a mechanism for evaluating possible performance outcomes 10 years into the future. 


e-logistics e-portfolio e-suitability e-reservoir