Since our last VirtualOil update in May, oil prices have continued to take a beating. As the chart of the rolling five-year portfolio shows, much of our strip of options is now out-of-the-money and the average value per barrel of that optionality has sunk below $7. No surprise then that
With presidential candidates targeting alternate energy development, the Clean Power Plan officially in place last month, and the rapid evolution of connected devices and the Internet of Things -- life in the energy sector is even more interesting than usual. To catch up on the latest developments, I sat down with one of
Dust off that old aphorism about an ounce of prevention. Oil companies applying analytics for predictive maintenance can see a substantial downtick in the unanticipated equipment repairs that quickly eat into an oil well’s profitability. Maintenance is far from a trivial concern in the oilfield. A pumping oil well is
Operations technology (OT), such as control systems, are crucial elements in our daily lives. They make the stoplights function at intersections. They guide robots with precise movements on the shop floor. Their switches and routers are the backbone of our internet. But what if they were even more intelligent? What
I'm not just talking about all the energy put in planning, scheduling, and supporting this great event, which is in Dallas, TX next week, April 26-29. I'm talking about all the presentations about using analytics in energy related industries, particularly in Utilities and in Oil and Gas. There is a
Whether it’s a smart water meter or a complex combustion turbine, expectations of reliability for complex, connected machines have increased across the board. Due to higher visibility and the availability of advanced analytics, companies know they should be able to identify emerging safety and reliability issues in these assets. By
As utilities expand analytic capabilities into more areas of the business, the reality of the data management challenge becomes very real. Most have accepted the era of "big data." But what about the quality of that big data? Is it reliable? What about the governance? Have the processes changed since
Is Iran right that oil is heading for $25? Are OPEC and the International Energy Agency (IEA) right that prices will rebound later this year? The headlines suggest that, whatever the case, oil isn’t ready to recover the enormous value it has lost in recent months. With upwards of a
There’s a lot of hand-wringing in the oil industry these days. Prices are down, supply and demand are out of balance, companies are merging, and jobs may seem insecure. In uncertain times, individuals can get distracted from professional goals. So, it is in this spirit that I offer 5 analytic
How’s your oil book looking? As prices continue their decline, the industry is making rapid adjustments, including project shut-ins and corporate restructurings. With WTI at $55 per barrel and the forward price five years out hitting $66, energy firms are scrambling to lock in value while bargain hunters start to
