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Oil And Gas Valuations

At ValuStrat, we provide Oil and Gas Valuation consulting services to our clientele in this industry by assisting with the following:

 

  • Cost structure improvement through operating, overhead cost reduction initiatives, maintenance and operating cost improvements, procurement improvements and sourcing strategies
  • Revenue enhancement through growth strategy, product line strategy, marketing strategy, pricing and cost to serve, and sales and channel management.
  • Productivity improvements including asset and portfolio management, operational efficiency improvements, capital productivity and supply chain strategy.
  • Development and application of new business models and network optimization.
  • Whole company turnaround and restructuring, including bankruptcy management, interim roles, stakeholder management, liquidity management, business plan review and development and litigation support.
  • Cash flow management including inventory and service level improvements while optimizing working capital.
  • Mergers and acquisitions support including partnership and alliances development, due diligence, pre-merger planning and post merger integration.
  • Specialty services including post crisis management and support.

 

Today, most of the proven oil & gas of the Middle East and North Africa is located within the countries of the Gulf Region – comprised of the Gulf Cooperation Council (GCC) countries, Iran, and Iraq. The Gulf region countries collectively possess some 54% and 40% respectively, of the world’s conventional oil and gas proved reserves, and large additional amounts of unproved and undiscovered reserves.

In 2010, the Gulf Region produce over 25.2 million barrels of oil per day, and 44.6 billion cubic feet of natural gas per day, accounting for over 30% of the world’s oil production, 15% of gas production, and 32% of Liquefied Natural Gas (LNG) exports.

According to International Energy Outlook projections, world energy consumption is projected to increase by over 50% by 2030 from 2008 figures, an average increase of 1.6% p.a. Fossil fuels (oil, gas and coal) will continue to supply much of the energy used worldwide. Global demand for liquid fuels is expected to grow by only 1.0% p.a. across this period, and the total share will decline from 34% (in 2008) to 29% (in 2035). In order to meet the world’s growing energy demand, the Gulf region’s share of world oil production will increase above 30% with the return of Iraq to full production in the coming years.

Global demand for natural gas has risen at a rate even greater than that of crude oil, experiencing an average increase in demand of 2.7% per year over the 1973 – 2013 period compared to 0.9% for crude oil over the same period. Natural gas consumption worldwide is forecasted to continue increasing at an average rate of 1.6% annually upto 2035, as compared with a continuing 1.0% per year for liquid fuels.

The expansion of the gas industry in the Gulf region itself will continue to be immense, due to the rapidly growing power requirement for the GCC population and increasing substitution of gas as a primary fuel for power generation around the world due to lower cost of natural gas on an equivalent basis, efficiency considerations and environmental considerations.

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