Upstream Costs & Technology

‘Lower for longer’ oil prices and drastically reduced project activity has forced significant changes in the oilfield services industry and compelled oil & gas operators to pay closer attention to cost management, strategic procurement and technological differentiation.

Upstream Costs & Technology provides forward-looking market analysis, indexes and insights on project costs, service and equipment markets, and technology development. It enables E&P companies to plan and manage costs within a project portfolio, to better source and manage strategic technology development, and to optimize procurement with strategic category and supplier management.

We can help you with:

Project cost planning
- How can I project portfolio costs for planning and budgeting and what external market trends and key drivers will affect supplier markets most
- What are the cost escalation assumptions I should consider? How do my estimates compare to industry indexes?
Category & supplier management
- Buy at the right time: What are the drivers of oilfield services and equipment suppliers’ underlying costs, and what are the cost outlooks for individual market segments over the next 5 years?
- Negotiate the right price: What opportunities and risks does the balance of supply and demand in a supplier segment present for operators and suppliers in terms of market power, profit margins, and supply bottlenecks?
- Source from the right suppliers: How can I quickly draw up a long list and review suitability parameters for key suppliers in an oilfield services and equipment segment?
Technology strategy
- What is the potential impact of technologies on portfolios and potential investments?
- How can I leverage learnings from successful industry deployment and challenges?
- How can an upstream company achieve strategic differentiation though its technology

Products & Solutions

Upstream Costs and Expenditures

IHS Markit Upstream Costs and Expenditure offering is designed to help Operators effectively monitor, forecast, and manage major capital and subsequent operating cost investments for onshore and offshore field developments
It enables effective negotiations with vendors based on real industry costs and provides an independent view of the global upstream cost environment with the provision of forecasts of short-term cost movements and long-term cost trends.
Based on IHS Markit Global Scenarios and analyses the drivers behind changes in the markets of the upstream industry.
Technology and Innovation

IHS Markit Upstream technology and Innovation offering delivers i Independent analysis of technology advances and trends along with their potential tactical and strategic implications on costs.
It provides a set of proprietary frameworks and data resources that allow member companies to evaluate the impact of technologies on their existing portfolios as well as on potential investments. Through the research and analysis provided, the offering allows companies to assess where they stand in relation to industry peers.
Oilfield Equipment and Services
IHS Markit Oilfield Equipment and Services provides actionable market intelligence to support oil and gas companies’ contract and procurement teams and vendor Strategic Planning and MI teams in making better sourcing decisions
- Detailed tracking, analysis and forecast of demand, supply, suppliers, category costs and the impact of key cost drivers
- Enables better sourcing/ procurement decisions, more predictable project deliveries and bottom-line cost savings by identifying supply bottlenecks and opportunities
- Better supplier relationship management for Operators and market / competitive intelligence for vendors
Costs and Technology Indexes
IHS Markit Indexes is a clearing house for information and data and each index is a proprietary metric developed using the data and tools collected and managed by IHS Markit, published on a consistent and frequent basis to service our clients.
- Upstream Innovation Index
- Upstream Capital Costs Index
- Upstream Operating Costs Index
- Downstream Capital Costs Index
- North America Cost Index

Experts

Daniel Yergin, Ph.D.

Vice Chairman, IHS Markit

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