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21 August, 2016

Creating Waterfall Chart in Excel

When making projects’ economics or financial statements or income statement presentations to management, many times we are asked “why there is difference in the profitability indicators or net income or cash-flow you are presenting today versus what you presented few months ago?” The management wants to see the variables/assumptions that have made the difference to help them in their judgment and decision-making.

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11 August, 2016

Why Oil Companies Must Look Beyond Oil to Survive

Persistently low oil prices have had a devastating effect on the economies of all major oil producers/exporters who are accustomed to a price regime of over $100/Bbl. The lifting of sanctions on Iran and its ability to quickly ramp up to pre-sanction (2012) levels of production and exports has made the market even more liquid and exerted downward pressure on oil prices.

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10 December, 2015

Six Ways to Calculate Net Present Value (NPV)

NPV is a popular measure of profitability used in project/investment evaluation to assess potential profitability (in monetary terms) of the given projects/investments under consideration. Because of the time value of money, NPV takes into account the discounting of the net cash-flow (NCF) using a certain discount rate over the duration of the project.

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18 December, 2015

US Will Require to Drill 189,000 Shale Gas wells to Achieve the Target Gas Forecast

U.S. shale gas production was 5% of total U.S. dry gas production in 2004, 10% in 2007, and is now 52% in 2015. Shale resources remain the dominant source of U.S. natural gas production growth. The total gas production is expected to increase from the current 26.43 TSCF/year in 2015 to 35.45 TSCF/year in 2040

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27 November, 2015

The Rise of Renewables – A Threat to the Oil & Gas Industry?

Fossil fuels have been the dominant source of energy for global economic prosperity for over 150 years and today still accounts for over 86% in global energy mix. The question is what would be its role during the next 2 to 4 decades? There is an on-going debate among various agencies, researchers and academia whether the role of fossil fuels will significantly diminish.

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16 April, 2015

Plunging Oil Prices – US Tight Oil Boom or the Burst??

The global shale oil and gas industry is still in its infancy (in the learning curve) but the United States industry is far ahead and has shown inspiring results as their shale/tight oil production increased from 1.24 million barrels daily (MMBD) in 2007 to 4.68 MMBD in 2014 – which represents approximately a 3-3/4 fold increase.

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18 June, 2012

The US Unconventional Oil Revolution: Are we at the Beginning of a New Era for US Oil?

Everyone is familiar by now with the unconventional (shale) gas revolution in the US, which has transformed US and global gas markets. Less well known to the wider public is that an unconventional (shale) oil revolution is also gathering pace, with equally far-reaching implications. It is not unlikely that the US, the world’s largest crude oil importer, could go a long way towards self-sufficiency by 2035. This would drastically change the global energy equation.

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