What Is Oil And Gas Pricing?


Oil and Gas Pricing requests are what every oil and gas company has to go through – throughout multiple stages of an asset’s lifespan. Due to the interests of governments, tax authorities, and of course a firm’s investors, shareholders and lenders, oil and gas pricing is not something that simply can be ignored. Your company’s worth is tied up in assets, and it is imperative that rigid models are constructed so external and internal powers can be placed in the same page as to what is the state of the company and how much it stands to owe.

When your firm has a number of active assets across the world, it makes sense to outsource the arduous tasks of oil and gas pricing to an expert oil and gas reservoir evaluation company with experience in economic evaluation, in order to ensure that the proper due diligence is paid. Saying that, it is also imperative that the oil and gas pricing firm also demonstrates the split between debt and equity with great precision as well as adherence to privacy.

A company’s reports does have a great impact on its value. Investors may not have perfect information or share a view on the process of investment projects without accurate oil and gas pricing. Add into the equation the scrutiny of the state- the way that each and all oil and gas companies must adhere to differing taxation advantages and differing risk profiles – especially when it comes to reserves-based lending.

Reserves-based lending is the go-to for oil and petroleum companies, but at its heart, reserves based lending is merely an asset-backed loan with the asset itself serving as collateral. With this considered, proper oil and gas pricing reserves reports are essential to give investors and lenders an accurate picture of where the company is and the worth that the company has – as most oil and petroleum companies’ wealth is strictly on paper.

ERCE are a London-based oil and gas reservoir evaluation firm and are the go-to when it comes to oil and gas pricing, and their methods of constructing models and then stress-testing them in an extensive fashion can result in investor, shareholder and lender confidence in your company. Furthermore, with their 30 years experience of fiscal systems throughout the world, ERCE are a safe bet for all manner of oil and petroleum companies on a worldwide basis.

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