Data collection
Data sources
We use a wide variety of public and private sources, but we do not purchase data other than from entities which own the data and are entitled to sell it to us.
External data sources
The primary external data sources used by Wood Mackenzie to compile field and play reports are shown.
Information source | Description |
Interviews with energy sector companies and government departments | Wood Mackenzie interacts with operators and partners of upstream assets in all regions and relevant countries. Most often, this is on a face-to-face basis in the relevant country or state. If possible, this also extends to all non-operating partners or royalty owners. Meetings are also held with contacts in the service sector, investors, relevant government / regulatory organisations and other industry stakeholders. |
Government publications and other regulatory information | Many countries and states publish data on energy activities. This may contain, for example, details of licensing rounds, licences awarded and relinquished, wells drilled and their outcome, production, the status of production and transportation facilities, processing volumes, permit data, completion information, and any new legislation impacting the energy sector. We also review other regulatory authority information, such as websites, press releases, impact studies and historical databases. |
Company annual reports and other company documentation | Wood Mackenzie regularly reviews all key energy company annual reports, investor presentations and SEC or other stock exchange (e.g. ASX, SEDAR) filings. In addition, we review other energy company sources of information, such as websites and press releases. |
General and industry-specific media | Our analysts regularly review general media and a wide variety of industry-specific publications. We also attend conferences, trade shows, forums, and educational workshops hosted by professional organisations. |
Third party commercial data providers | There are occasions when we purchase specific data directly from third parties. NB: Wood Mackenzie has used INCOTEC data to identify locations of specific fields, licence blocks and infrastructure in Russia. |
Academic material | Research conducted by universities, trade consortia, and professionally-affiliated groups such as the SPE and AAPG is also used. Where applicable, it can be applied in our models to help develop our asset-specific views. |
Source: Wood Mackenzie |
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Data Validation
Our data are subject to a rigorous integrity checking and quality control process. We have developed a comprehensive set of checks, which are carried out on a regular basis, at a field, play, basin, country, region, and global level.
Scope of coverage
Conventional assets
Wood Mackenzie strives to cover all main commercial upstream assets. The primary reason for exclusion of an asset is diminutive scale in terms of reserves, production or investment. Other reasons include a lack of client interest, for example where oil and gas fields are entirely owned and operated by the state, with no possibility of external participation.
Unconventional assets
Our coverage of global unconventional plays includes a range of speculative opportunities. We construct analogue models and form analytical views in areas where no reserves exist in unconventional plays, but there is considerable resource potential.
Classification of discoveries
Wood Mackenzie sub-divides discovered resources by commerciality, into commercial (reserves) and sub-commercial (contingent resources). Assets are further sub-divided depending on their development status.
Commercial
Commercial assets are defined as those on production, under development or likely to be developed. Detailed coverage of commercial fields that are depleted and/or abandoned will usually stop after abandonment, but the details of these fields are retained in our databases. Wood Mackenzie sub-classifies commercial assets as:
On production (onstream): the field is currently producing
Approved for development (under development): the field is currently in the main construction phase, with the final investment decision having been taken.
Justified for development (probable development): The field development plan is mature and the development is expected to proceed. Typical indicators are positive economics, momentum and alignment between stakeholders to start development in the short to medium term and no major contingencies or issues that could materially delay or suspend development activity.
Sub-commercial
Sub-commercial assets contain discovered volumes of petroleum potentially recoverable by a development project but not currently considered to be commercial. This may be due to a number of reasons. For example, a lack of development plans, low resource volumes, technical constraints, low product quality, or the lack of accessible markets (such as stranded gas deposits) or viable price regimes.
Wood Mackenzie further sub-classifies sub-commercial assets as:
Economically viable (good technical): these are fields that could be economic under our current costs and price projections, but significant uncertainty remains over the nature and timing of their development.
Not viable (contingent): these are fields we do not expect to be developed under current costs and price projections. To become economically viable, these fields may require a breakthrough in technology, a step-change in prices, new fiscal terms or access to as yet unplanned infrastructure or markets.
Resource potential in unconventional plays
This is a measure of the technical potential of the play if all the accessible and prospective land is drilled up and produced. We use no economic or time constraints in our development model to calculate these volumes. Key variables that influence this metric include our view on average well recovery (expected ultimate recovery), well spacing, and the ultimate size of the area suitable for drilling. The drillable area accounts for both surface and subsurface constraints. Resource potential does not include gas volumes already produced or those classified as commercial.
Classification of field type
Wood Mackenzie classifies field type by hydrocarbon, depending on the composition of reserves. These field types are determined as:
Oil – oil accounts for 80% or more of total reserves
Oil & Gas – gas accounts for greater than 20% but less than 80% of total reserves
Gas – gas accounts for 80% or more of total reserves
Gas/Condensate – must contain gas and condensate reserves greater than 20% but less than 80% of total reserves. Condensate should have a gravity of 45 °API or higher.
Note – there may be exceptions where gas reserves are present but not commercially recovered i.e. flared, re-injected or used for onsite fuel.
Capital and operating costs
Wood Mackenzie models capital and operating expenditure at the field or field grouping level. In unconventional play reports, these metrics are calculated under two scenarios, individual development wells and multi-well, full-cycle projects.
Exploration and appraisal (E&A) costs: in many cases in conventional fields, cash flows do not include E&A costs, and hence the economics presented represent project economics, not full life-cycle economics. In these cases, the exploration history and costs incurred are discussed in the field report, and the E&A costs may be included in the corporate files within our model for each company.
In some regions, E&A costs are included in the field cash flows, usually in PSC-type regimes, since they have an impact on the tax calculation. In our full-cycle economic models for unconventional projects, access costs, pilot wells, and seismic fees are also included.
Capital costs: these include, where relevant, costs for production facilities (including water management), processing equipment, subsea facilities, pad construction, development drilling, completion and well stimulation, pipelines, offshore loading facilities, terminals, abandonment costs and any other costs that are typically capitalised.
Operating costs: these include, where appropriate, fixed and variable costs for field operations, transportation (non-tariff), equipment leasing, insurance and asset-level G&A costs. Additionally, they include any tariffs paid for transportation and/or production processing.