Data-driven Workflow Makes Better Use of Historical Data to Improve Return on Capital

Returns must improve for the oil and gas industry to remain a viable target for capital investment.

Novi’s AI-driven oil and gas production forecasting software publishes data-driven dynamic forecasts and supporting datasets. (Source: Novi Labs)

For more than 100 years, the oil and gas industry was a profitable place to invest capital. As such, it had no problem attracting capital as the shale revolution started in 2012. With the protection of high oil prices over a prolonged period of time, shale drilling seemed as profitable as any other form of E&P development.

From 2016 to 2020, it was a boom-and-bust cycle for shale-focused E&Ps. Return on capital was largely abysmal during this period.

New competition for energy production subsidized by governments began to impact the market beyond 2020. Investors began to view traditional E&P as a legacy industry, and they demanded return on investment in the form of stock buybacks, dividend hikes and pure stock speculation.

Novi Labs was founded to help the industry make better use of historical data to improve return on capital. The company uses data-driven workflows augmented by cloud compute and machine learning to help its E&P and financial services customers find hidden value in their assets and maximize returns. Novi Labs software is designed to improve productivity while increasing decision quality.

Already have an account? Log In

Sign up for FREE access to view this article now!

Unlock Free Access