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Top 4 Benefits of an Effective Portfolio Analysis for Oil and Gas Companies

Jan 16, 2019

Balancing production, investments, and returns in today’s lower-for-longer oil price environment are critical challenges for oil and gas companies. Top oil and gas companies are continuing to strive for the right balance of geographies and resource types. An important question that arises is what portfolio of resources can deliver the optimum results across a range of price scenarios?

In an era of higher shareholder expectations and uncertain oil prices, an effective business portfolio analysis is likely to be the priority for oil and gas companies. However, with the availability of innumerable narratives and tools in the marketplace, this is easier said than done. Therefore, oil and gas companies need to do a better business portfolio analysis. With the help of a comprehensive portfolio analysis tool, oil and gas companies can not only optimize their portfolio but also be in sync with the way markets evaluate portfolios in this period of uncertainty.

At SpendEdge, we understand the impact that an effective portfolio analysis can have on your business. And to help companies thrive in the competitive marketplace, our team of experts has highlighted four significant benefits of portfolio analysis that can help in maximizing ROI and deal with the competitive pressure.

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Is your company looking to use portfolio analysis to gain a competitive advantage? Speak to our experts to gain an overview of the solutions that could best suit your business.  

Major Benefits of an Effective Portfolio Analysis

Benefit #1: Better decision making

The first benefit of better portfolio management is its ability to drive better business decisions. Business portfolio analysis helps oil and gas companies to gain visibility both from a strategic, top-down perspective and from a tactical bottom-up perspective. A good handle on past project metrics makes it much easier for oil and gas companies to predict future factors like utilization of resources. Also, portfolio management helps companies to identify resources that are not contributing towards their business objectives. 

Benefit #2: Minimize risks and maximize profits

The second benefit of business portfolio analysis is that it helps you to reduce or avoid your exposure to risks. There are several categories of risks, including governance, financial, misdirected efforts, and resource utilization. On the financial side, a good portfolio analysis can help oil and gas companies to identify projects that are not contributing to business objectives. The sooner such wayward projects are identified, the sooner risks are reduced. Furthermore, project portfolio analysis can help in building accountability framework that ensures that the right level of compliance is followed through every product lifecycle. Thus, effective risk management is one of the significant benefits companies fetch from business portfolio analysis.

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Managing risks is a daunting task to do for companies. An effective business portfolio analysis can help. Want to know how? Request a free proposal now.

Benefit #3: Helps in maximizing resources

Business portfolio analysis can help oil and gas companies to maximize their resources. It can also help in reducing exploration costs. An effective portfolio analysis can also facilitate oil and gas companies to monitor the demand and redeploy resources accordingly. Portfolio management also help companies to keep skills profiles up to date, quickly find the right resource for each project, and then manage the demand of the resource, capability, and allocations.

Benefit #4: Prove the value to stakeholders

If there is one factor that separates the super successful portfolio analysis from the rest, it is the ability to prove its value to the stakeholders. Proper portfolio management can allow stakeholders to have access to relevant data without bogging them down with sorting through reams of data that is confusing and irrelevant. The net outcome of this greater degree of transparency is that stakeholders in oil and gas companies gain a much greater appreciation and comfort level what is done, both in terms of project execution and results.


With a plethora of portfolio analysis tools and risk assessment strategies in place, there is no looking back for oil and gas companies. Request a free demo below to know more.

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