Boom or Bust: How the right tool can help oil and gas organizations avoid costly mistakes

Oil & Gas is booming: Oil surpassed $70 a barrel for the first time since 2014[a1] , and is only expect to continue to skyrocket. Many Oil & Gas companies are outperforming expected quarterly results.

But within the industry’s booms, some organizations have also seen some big busts.

For example, consider one of the Permian Basin’s more prolific operators, Parsley Energy.

At the beginning of 2018, Parsley Energy lowered production guidance, raised their capital expenditures, and sold off precious Permian acreage.  The painful part of this move is the Permian acreage, which would normally sell for $30,000+ per acre, was instead sold for a miniscule $5,700 per acre. [a2] 

These whiffs on Parsley’s part, which resulted in a slew of difficulties for the operator ranging from declining share prices to generally industry uncertainly, were all avoidable. If Parsley Energy had access to the right tools, as opposed to the outdated, fractured data analytics and valuation tools that are so prolific in the oil and gas industry, the organization would have better understood the value of their assets and could have avoided selling at a loss. To avoid making costly mistakes in the future, operators need to invest in a tool that will accurately represent the value of the acreage that they hold.

From operators to minor shareholders, every player in the Oil & Gas industry needs a tool that creates a full package for upstream portfolio management, Lower48 Analytics is poised to meet that need. Our software is the most powerful tool on the market, thanks to its comprehensive data analytics capabilities and ability to integrate seamlessly with any other data tool. And operators like Parsley can spend less time fumbling with the fractured data systems they currently use to value their assets, and more time making informed decisions, thanks to Lower48 Analytics’ analytical power.

Accurately analyzing existing data is vital to correctly valuing an organization’s assets, and the Oil & Gas industry is desperate for software to provide unity for the myriad data sources it relies on. Lower48 Analytics is the tool the industry  desperately needs to move toward the future of upstream oil & gas, and away from critical blunders like underselling some of the most valuable acreage in the world.

To learn more about how Lower48 can help your organization capitalize on the indstury boom and avoid big busts in upstream oil & gas, please call (512) 862-7824, or email sales@lower48.net.

Mitch Holt