Part 2: How to uncover opportunities with data analysis

The first article of this series discusses the importance of detailed days sales outstanding (DSO) analysis and correlation to revenue generated for streamlined business processes, improved cost savings, and more informed strategy adjustments. This second article shows how leveraging your internal financial data with Enverus oil & gas datasets, including well design, financials, geology data, and more, provides a complete picture for opportunity identification, risk assessment, and strategic planning. Enverus is uniquely positioned to incorporate our proprietary datasets and intellectual capital to establish a true cause and effect relationship between trends and data to enable a data-driven decision-making process.

We’ve worked with several oilfield services (OFS) customers during different OpenInsights engagements, combining these datasets together to create a custom process for each engagement. Below is an example of one engagement where Enverus created a risk profile to build a strategy for a downhole equipment company whose products are designed for specific depths and geologies.

The company looked to answer the following questions:

Metrics for operator risk profiles

We assessed the total available market for these products based on well design, geology, and operators. Blending the variables behind each of the metrics below creates an integrated risk profile for each operator. The downhole equipment company can use this to create a targeted and effective strategy towards identifying opportunity and growing market share.

Graphic of basin model that shows well and geology data for southern Delaware area
Basin model showing well and geology data for southern Delaware area.

The chart below shows the risk profile, based on these five variables, provided by the OpenInsights analyst team:

Graphic that shows risk profile provided by OpenInsights analyst team
Using an integrated risk profile for each operator, you can create a targeted and effective strategy toward identifying opportunity and growing market share.

The priority of each risk segment would be driven by the strategy adopted by the service company. However, a few interesting trends emerge:

This isn’t inclusive of all the various methods leveraged by service companies to maximize business efficacy in this market, but it does provide insights into some of the moves being made by marquee players in the industry. As the industry repositions to tackle the new challenges, we expect more and better versions of an integrated analysis approach by key players to not just survive, but thrive, in any market condition.

To be defensively opportunistic, you must understand your business

Market share capture, risk mitigation, and proper capital allocation are essential areas of focus for OFS to counter the volatility of the oil industry. You cannot develop an effective defensively opportunistic strategy without understanding your business. Enverus is uniquely positioned to assist OFS companies in obtaining customized insights that help them streamline operations, optimize cash flow, and create an effective strategy to find opportunities and grow market share.

Learn more about OpenInsights for Suppliers at https://www.enverus.com/products/openinsights-for-suppliers/ or email us at [email protected].

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