Oil Production Forecasting: How to Master Predictability

July 26, 2023

Trust and credibility are the currency of the C-Suite. See how executives use ComboCurve's oil production forecasting to foster confidence in the market.

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Can precise oil production forecasting save your job in the C-Suite?

Sometimes, getting fired isn’t a quick event. It’s a slow process. It happens when you make promises you don’t keep. This could be promises about dividends, cash flow, or bonuses. It’s important to stick to your word. Why? Because trust from investors, employees, and customers matters.

Your success as an energy executive depends largely on your ability to predict your company’s financial trajectory. Since oil and gas production are the lifeblood of your operation, your engineers need accurate and reliable forecasting. Without strict oil production forecasting, your type curves are off, your economics are wrong, and your scheduling is a mess.

The secret to good financial predictions? Clean data and clear processes on one platform.

Elevating Oil Production Forecasting

Each drop of oil or cubic foot of gas your engineers predict is future revenue and cash flow. If they’re good at oil production forecasting, you can trust the financial commitments you make. Investors and stakeholders are in good hands. Your confidence in the office translates into the marketplace. Consistently hitting your targets is a sign of a growing company with a promising future.

This makes ComboCurve more than a simple oil production forecasting tool.

ComboCurve is not just a forecasting tool. It’s a platform that helps improve methods, combines data, and makes sure your forecasts are consistent. Add ComboSync and you’ve got one truth source. It blends your data with third-party data in one fast platform.

Improving Accuracy with SPEE Guidelines

If you’re reading this, you know wells with minimal data can have a big impact on revenue. This is where ComboCurve’s Auto-Proximity becomes indispensable. It uses production from offset wells within the proximity you choose to build forecasts for wells with minimal data. This ensures that no well is left out, no matter how data-deprived it may be.

The Society of Petroleum Evaluation Engineers (SPEE) has established guidelines to improve oil production forecasting. The world before these guidelines was brutal. Type curve errors could potentially exceed 100%. This introduces a high degree of uncertainty into business plans. But, when you incorporate these guidelines, as ComboCurve does, you can greatly reduce these errors.

EQT, the largest natural gas producer in the Appalachian Basin, uses ComboCurve for oil production forecasting. It keeps EQT’s forecasts within 1% of the actual production numbers.

Quality Oil Production Forecasting Drives Credibility

You don’t directly oversee oil production forecasting from the C-Suite. However, you have a keen interest in the speed and dependability of your team’s tools. With ComboCurve, engineers can quickly produce high-quality forecasts and type curves. This reduces risk and errors. In turn, you can confidently predict financial results.

This bolsters your company’s appeal. Investors trust businesses with predictable returns. As a result, high-precision forecasting raises investor confidence. It also facilitates effective planning and budgeting within your company. With a clear vision of the future, your team can make informed decisions. This drives efficiency in an upward spiral.

Moreover, this high degree of operational efficiency instills a sense of trust among stakeholders. They can rest assured knowing you have the right tools for the job. This assurance fosters an atmosphere of confidence throughout your team.

Sensitivity Analysis and Team Collaboration

ComboCurve also enables more frequent and accurate sensitivity analyses. All businesses carry a measure of risk, but with ComboCurve, you can quickly evaluate these risks under various scenarios. This analysis provides a clear view of the potential impact on your cash flows, expenses, and CapEx plans. This provides a more rounded view of your company’s risk profile.

ComboCurve also encourages more productive team collaboration by integrating diverse scenarios into a single platform. This seamless integration, combined with rigorous oil production forecasting, makes it so you don’t have to switch between different software to communicate between teams. You enable smoother workflows and foster an environment of increased productivity and cooperation.

Transparency, Accessibility, and Emission Forecasting

Environmental responsibility is becoming increasingly important. On top of oil production forecasting, ComboCurve can help you forecast emissions. This can help you align strategies with global emissions reduction goals. When you take proactive action, you send a strong message of sustainability to investors. This gives your company another edge in the marketplace.

In summary, ComboCurve is an invaluable ally for any C-Suite executive in oil and gas. It empowers you to confidently commit to your goals, revenue, dividends, and more. It provides more accurate and reliable oil production forecasting, encourages collaboration, promotes transparency, and helps you to plan for a more sustainable future.

Without ComboCurve, your team collectively wastes days, weeks, and months on outdated legacy workflows. With ComboCurve, they get all that time back to deliver value for your organization.