CWBG Oil and Gas is seeking to build an oil and gas investment company targeting projects with attractive risk reward profiles due to factors including proven nature of reserves, level of historic investment, established infrastructure, route to early cash flow and exploration upside..
exploring, drilling, transporting, and refining -- is the focus of every publicly-traded oil company, ever..
This is really what separates the "majors" from small Mom & Pop operations. Small oil companies that hit a bad run of luck will go out of business. It happens all the time.
controlling the entire business from raw materials to finished product -- gives us the ability to optimize and fine-tune the value chain.
The expense structure at an oil company is such that personnel costs are a relatively low fraction of total outlays. So they can afford to pay for talent. Likewise, consultants and analysts are cheap compared to their performance impact. So there is a lot of tactical and strategic thinking going on..
Actuarial techniques guide every significant decision we make. Every major cost estimate is given a probability distribution, and those distributions get rolled up into big-picture expense distributions, and so on. (It's embedded in the culture -- even in casual conversation we talk about P10/P50/P90 levels.) Oil companies must understand their aggregate risk exposures in order to survive.
Oil companies are really geology companies! Poor exploration performance will get you a 0-2% success rate, and "ok" performance will get you a 10-20% success rate on "wildcat" wells. But a truly world-class operation may average 50-75% success rate.There is an utterly enormous difference between 10% and 50% -- you find five times more oil per dollar spent on exploration