Quantifying the value of E and P technology

A quantitative value-to-cost analysis was performed for the upstream technology portfolio of Mobil Oil for the period 1993 to 1998, by quantifying the cost of developing and delivering various technologies, including the net present value from technologies applied to thirty major assets. The value captured was classified into four general categories: (1) reduced capital costs, (2) reduced operating costs, (3) increased hydrocarbon production, and (4) increased proven reserves. The methodology used in quantifying the value-to-cost of upstream technologies and the results of asset analysis were described, with examples of value of technology to specific assets. A method to incorporate strategic considerations and business alignment to set overall program priorities was also discussed. Identifying and quantifying specific cases of technology application on an asset by asset basis was considered to be the principal advantage of using this method. figs