Oil & Gas Companies Are Improving How They Budget and Forecast
Oil and gas is a multifaceted, volatile global industry that experiences constant price fluctuations coupled with long periods of boom and bust. Reporting on financials is a cornerstone to this industry.
Today’s oil and gas companies are changing the way they approach budgeting and forecasting by leveraging flexible and powerful technology tools and solutions that provide agility to react more quickly to changing circumstances and conditions.
Below are some examples of how oil and gas companies are applying technology to transform the way they budget and forecast.
Consolidating data from various sources into a single view of the organization.
Restricted access to data often limits the ability to report on information. Technology tools can extract data from finance systems at regular intervals and import this data into an easily accessible central repository.
Net revenue numbers and expenses can be easily consolidated across all projects into a single spreadsheet. This gives oil and gas companies a side-by-side view of financial and operational data, helping Financial Analysts to quickly see a snapshot of the business.
Slice and dice through large amounts of data to compare trends and identify opportunities
Business data, pulled from a central repository is consolidated and stored in a multi-dimensional database or cube. The cube is optimized for slice and dice analytics, providing users with fast and intuitive reporting and analysis.
The central repository unifies the latest data from across the organization so that actuals data is immediately available after period close to perform critical variance analysis.
Financial Analysts can quickly analyze current and past submissions of production forecasts and provide accurate reporting to management on quarterly variances. The business can use the information provided in these reports to adjust future financial forecasts.
Below is an example report showing prior and current submissions of oil production forecasts.
Accurately report the longevity and sustainability of existing assets.
Investors and regulators want hard metrics and precise reporting, but it can often be difficult for oil and gas companies to classify and report on proven reserves.
Interactive data visualization BI tools give oil and gas companies rich visualizations to help collect and organize data and gain a clear and confident understanding of your final proven reserves. These reports, in the form of rich visualizations, help provide an explanation for the SEC on how the number was calculated. Multi-dimensional analytics can also be leveraged in this instance to drill down into the data and ensure that all reserves information aligns with the company balance sheet.
Accurate reporting of the longevity and earnings sustainability of existing assets gives Investors and company leadership confidence and peace of mind.
Whether it be modifying forecasts or strategies, oil and gas businesses are using technology solutions to gain better access to informative data to improve their budgeting strategies and enhance their operations.
Altius has been successful with numerous oil and gas projects spanning a variety of business needs and across many areas of the organization, such as finance, operations and purchasing.
Read how technology solutions are helping oil and gas companies solve business challenges and make quicker, more improved decisions based on data at http://altius-usa.com/solutions/.