Ian Jones

12月 162016

“Analytics” and “data scientist” aren’t new terms, but they are trending buzzwords. The popularity of these concepts has created a false impression: Analytics are mysterious abstractions that can only be decoded if you have a white lab coat and an advanced degree in computer science. The reality couldn’t be more different. […]

No data scientist? No analytics platform? No problem. was published on SAS Voices.

7月 142016

Under-utilized technology creates a drag on an organization. The ability to get more out of the tools you already use can increase the value of an existing investment, and that value grows as processes become more efficient and decisions are based on firmer foundations. Consider the facilities engineer at an […]

Turning your data historian into a futurist was published on SAS Voices.

4月 292016

The Barnett Shale in North Texas hit a historic mark on April 25: Its rig count fell to zero. Two hundred rigs once harvested the 40 trillion cubic feet of natural gas in this massive basin, stretching beneath 17 Texas counties. Today, nothing. This dramatic silence in North America’s second-largest […]

All quiet on the Barnett Front was published on SAS Voices.

12月 192015

Year-end outlooks from most analysts project the low-price environment in the oil market will continue for most of next year, but some pundits emphasize that the market has bottomed out and suggest recovery, though gradual, may be seen if increasing demand outpaces supply growth and sops up some of the […]

Oil, options and inflation: Looking for a silver lining was published on SAS Voices.

11月 272015

Times have changed. As the oil industry shutters and sheds investments that made sense during the two-year period in which oil rode comfortably above $90, the market is establishing a new equilibrium at $40/barrel. This despite the fact that the Baker Hughes domestic rig count is down 64 percent. It’s […]

From boom to bust: Searching for sustainability in the new oil climate was published on SAS Voices.

10月 092015

Though crude oil prices edged up last week, the market remains well below VirtualOil’s original $50 strike price, meaning the hypothetical portfolio’s production is shut in in the spot market again. Oversupply continues while China GDP forecasted growth is slowing. Given the market outlook, the VirtualOil board has decided to […]

Oil portfolio restructured and back in the money was published on SAS Voices.

9月 052015

Since our last VirtualOil update in May, oil prices have continued to take a beating. As the chart of the rolling five-year portfolio shows, much of our strip of options is now out-of-the-money and the average value per barrel of that optionality has sunk below $7. No surprise then that […]

Time for VirtualOil 2.0? was published on SAS Voices.

7月 142015

Dust off that old aphorism about an ounce of prevention. Oil companies applying analytics for predictive maintenance can see a substantial downtick in the unanticipated equipment repairs that quickly eat into an oil well’s profitability. Maintenance is far from a trivial concern in the oilfield. A pumping oil well is […]

From downtime to upside with oilfield predictive maintenance was published on SAS Voices.

5月 292015

This month we take a fresh analytical view of our hypothetical VirtualOil portfolio by comparing the forward price of WTI (the green line) to the prompt month price (red line). The resulting graphic (chart 1) demonstrates the relative stability of the 48-month forward price in contrast to a very active spot […]

The post VirtualOil: volatility and the value of a hedge appeared first on SAS Voices.

4月 172015

Oil is bouncing around the $50 range as the market adds and loses value with each new headline, from potential new Iranian exports after the nuclear talks to the slowest month of inventory builds at Cushing since Thanksgiving. The US rigcount is down nearly 23 percent year-over-year, but the rate […]

The post Oil benchmark back in the money, for now, with an eye on volatility appeared first on SAS Voices.