Performance Database for Unconventional Assets

BCG’s performance database for unconventional assets manages detailed information on leading shale operators and basins.

Analyses and forecasts in the shale oil sector—including those related to projected growth in reserves, price volatility, and shale development profitability—have typically drawn on models used in the traditional oil and gas sector. The problem: those traditional models do not reflect the unique characteristics of shale oil development, limiting the ability of energy producers and oil and gas service companies to plan for and respond effectively to dynamics in the market.

The performance database for unconventional assets is BCG’s proprietary database—both for individual shale operators and basins, such as Eagle Ford, Marcellus, Duvernay, Bakken, Delaware, Midland, Haynesville, and Niobrara. It draws on detailed and granular information to assess and model shale operations, allowing for the adjustment of geological differences among operators as well as a standardization across a variety of cost drivers, such as type and depth of well. Such adjustments help yield a clear understanding of actual operational performance, including through industry-specific KPIs and overall internal rates of return.

The database has been built on publicly available data sources, including public financial filings, hundreds of interviews with operators, and BCG’s project experience. It can help shale operators in a variety of ways:

  • Spot areas for improvement in capital or operating expenditures, as well as organizational staffing and structure.
  • Identify top-quartile performers and the specific practices and activities that help them enjoy superior IRR.
  • Facilitate the review of potential M&A transactions, joint venture deals, and capital investments in greenfield assets.
  • Zero in on industry trends, particularly in cost innovation and basin specific operating models.