1 / 30

A Comparative Analysis of the Performance of Selected E&P Firms in the U.S. & Abroad

A Comparative Analysis of the Performance of Selected E&P Firms in the U.S. & Abroad. Professor Wumi Iledare, Ph.D. Senior Fellow, U.S. Association for Energy Economics Distinguished Fellow, Nigeria Association for Energy Economics Associate Editor, SPE Journal of Economics & Management

wirt
Download Presentation

A Comparative Analysis of the Performance of Selected E&P Firms in the U.S. & Abroad

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Comparative Analysis of the Performance of Selected E&P Firms in the U.S. & Abroad Professor Wumi Iledare, Ph.D. Senior Fellow, U.S. Association for Energy Economics Distinguished Fellow, Nigeria Association for Energy Economics Associate Editor, SPE Journal of Economics & Management Professor, Petroleum Economics & Policy Research & Director, Energy Information Division

  2. Presentation Outline • Introduction • Research Objectives • Overview of FRS Companies • FRS E&P Firms’ Efforts & Outcomes • Modeling Approach & Results • Closing Remarks

  3. Objectives • Paper analysesquantitatively, FRS E&P firms efforts and outcomes in the US and overseas • The paper evaluates and compares the performance of these firms in an aggregate sense using Monte Carlo simulation process • Determines the effect of tax regimes, prospectivity, and prices on empirical aggregate outcomes of EP efforts in the US and overseas

  4. Companies Reporting to the FRS, 1974-2009

  5. Companies Reporting to the FRS, 1998-2009

  6. Firms Reporting to the FR System • Original criteria was at least 1% of oil and gas production or reserves in the U.S. or 1% of either refining capacity or petroleum product sales in the United States. • In 1976 there were 27 FRS firms reporting domestic and foreign activities using Form EIA 28 • A simplified EIA was introduced in 1998 to make the survey more pragmatic because of the changing structure of the industry

  7. Role of FRS Firms in the U.S.

  8. Role of FRS Firms in the U.S.

  9. Role of FRS Firms in the U.S. Liquid Production Dry Gas Production

  10. Role of FRS Firms in the U.S. Liquids Reserves Gas Reserves

  11. FRS Firms’ Relative Reserves and Production in the US & Abroad

  12. FRS Firms’ Relative Performance in the US & Abroad –BOE Reserves Replacement

  13. BOE Reserves per Efforts in the US and Abroad

  14. Model Specification • On annual cash flow for a typical E&P venture : • NCF = Gross Revenue - Royalty - State & Local Taxes - Operating Expenses - Overheads (business & investment) - Capital Investments - Bonus & Rentals - Net Taxes + Property Sales Price

  15. Model Specification • Annual Taxable Income = Revenues – Royalties - Fiscal Costs • Fiscal allowable cost deductions include: • OPEX, Royalty, Depreciation, Depletion Allowance, Expensed Investments • Revenue (R) = Price (P) * Marketed Production (Q) • NCFATAX=NCFBTAX-TC(NCFBTAX-DD&A-I) • PIR = 1+ [NCFATAX / (DD&A+I)] • NRE = (NCFATAX *SUCR)/CWELL

  16. Model Specification • NCFBTAX= (1-β1-β2-β3)* R • SUCR = successful completion rate • I = interest payment on debt (loan) if allowed • TC = the corporate tax rate, fraction • Βi: (i=1,2,3) fraction of revenue for CAPEX, OPEX, other Cost • R = annual Operating Revenue • P= price of Output and Q=Output

  17. Descriptive Statistics of Data

  18. Descriptive Statistics of Data

  19. Deterministic Model Results--US

  20. Deterministic Model Results--FOR

  21. Deterministic Model Results

  22. Deterministic Model Results

  23. Stochastic Model Assumptions--US

  24. Stochastic Model Assumptions--FOR

  25. Stochastic Model Results--US

  26. Stochastic Model Results—Foreign

  27. Comparative Stochastic Results US Foreign

  28. Stochastic Sensitivity Results

  29. Stochastic Sensitivity Results

  30. Summary & Conclusions

More Related