Alejandra León
Director of Latin America Upstream
IHS Markit
View from the Top

The Importance of Data for Decision-Making

Mon, 08/28/2017 - 12:53

Q: How is the merger of IHS and Markit benefiting the company’s clients? 

A: The merger between IHS and Markit has strengthened our product offering by uniting our expertise in the energy market and the financial sector, reinforcing our analyses of the market’s dynamics. This new generation of products offers powerful and unique data analysis and management solutions with a simple treatment for indexing and information. On upstream operations and keeping in mind the coming licensing round for unconventional resources, our tools help our customers make strategic decisions that go beyond the assessment of reservoir exploration and optimization. Using our tools, our customers can also feature sensitive decisionmaking factors such as the financial capabilities of each project and the required capital to materialize them. This integration has driven the quality of our analyses to a holistic level where all the important elements are connected to the inherent dynamics of the oil and gas industry.

Q: What changes have low oil prices and the Energy Reform inspired in the oil and gas industry?

A: During this long period of low oil prices we have seen several important changes in the oil and gas industry, especially in terms of financial discipline and operational efficiency. The Energy Reform has attracted a reasonable number of new investors despite a complicated global context, and more companies are looking to start operations in Mexico. Some of the main drivers are the licensing rounds and the transparency behind them. Another remarkable component of these changes are the business models offered by each exploration and extraction contract, providing a unique tax regime and legal terms that make them more attractive to operators. These changes, to mention a few, plus our ability to compile and analyze information have helped our clients to make more informed and secure investments across the whole value chain of the oil and gas industry. 

Q: How do your clients measure their success when using your tools? 

A: IHS Markit excels in data collection and business analysis across the value chain. Our international database covers every relevant aspect, from upstream to downstream. The company’s integrated projectevaluation data service provides distilled information on geology, costs, fiscal and regulatory frameworks, and even benchmarking analyses for suppliers. Our experts in each field complement all these powerful tools. We help oil and gas companies assess and compare projects worldwide, so they can make the best decisions and strengthen their investment portfolios.

Q: What exactly is IHS Markit doing to provide off-the-shelf business intelligence for its clients? 

A: The recent success stories in Mexico regarding significant discoveries of new reserves have made more companies see the country as a safe source of long-term investments. At IHS Markit, we are collaborating with new companies in the Mexican market to provide them with the best intelligence that allows them to plan and execute their projects. Adding to our software solutions, we launched Vantage, which will offer detailed valuations for more than 15,000 upstream energy assets around the world. Using this suite, our clients will be able to access components that include geological details, economic models, contract analyses and financials; our regular analysis adds social, environmental and even political risks. Another important software that we distribute and maintain is QUE$TOR, which provides detailed CAPEX and OPEX cost estimates during the project’s life cycle. These economic models are focused on a regional analysis. The accuracy of this software allows users to make informed and precise decisions in each region where they operate. 

Q: How is IHS Markit participating in the farmout process? 

A: IHS Markit has maintained collaborative conversations with PEMEX to help it manage its asset portfolio in the best possible way. IHS Markit is providing tools that will help the NOC make the best and the most informed decisions.