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What are financial policies and procedures
They are how a company interprets internal contol laws
What is internal control and processes
Based on SOX, makes it a law that if a financial statement is wrong, jail time could be spent. Financial statements are to be made public every quarter
Name 4 Key internal controls and decribe them
Segregation of duties - splitting up duties so more than one person is responsible
Proper authorization - a manager can only approve or expense so much before it needs to move up the food chain.
Physical safeguards (FP24) - safeguards in place so assets cannot be sold or money stolen i.e fuel cards and laptops (asset stamped on laptop)
Audits of ICQ and balance sheet - make sure they are correct and everything is being done correctly
Delegation of authority - One person can purchase it but someone else must approve it
What is Revenue Cycle
Company cash flow since its capital is used to offer a service until its returned with ot without profit
***Flow of cash in - through - and out of company***
What is Sarbanes and Oxley?
It was a law passed after the Enron incident, and it says that the company is liable for their financial statements and must be made public every quarter
M&S Process...what is it?
There must be a PO, what is ordered is what I got is what I was billed for....then the PO matches up and can be sent for invoice
Over $1000 3 quotes must be submitted
Are they able to pay (credit), signed contract, do the service, and have ticket signed
OFM - Oilfield financial manual
- Need 3 quotes on purchases over $1000
- Enter competitve bidding on purchases bw 5K and 100K
- Supply chain organization must be involved in purchases over $100K
Its a SLB financial guide
What are the 3 Revenue categories on the NIS?
Service, product, and reimbursable
Whas it cost recognition/cost indicators?
The invoice matches what we got and what we were told
We also need to recognize cost in the period they were incurred.
(We cant make a provision for the xmas party in August just bc that was a really good month)
What are the 3 different financial statements?
Cash flow, NIS, Balance sheet
Whas it cash flow sheet?
Cash in- cash out
What is the NIS
NIS is the bottom line (a snapshot of a certain time frame)
Revenue, and costs
What is a balance sheet
- A company's net worth
What are key indicators on the NIS?
Compensation, Depreciation, and M&S
What is the depreciation time for tools?
What is the depreciation time for Cables?
What is the depreciation time for buildings?
What is the depreciation time for Trucks?
What is depreciation?
- What "worth" it loses every month due to age, etc.
- in SLB all fixed asstes are depreciated
- GBV/USeful life in months
What is considered a Fixed Asset?
>$5K, serial number, and more than a 2 year lifespan
What would go under lease/rent?
Apartments, printer up front
What would go under transportation/mobilize?
Hotel rooms for a job, hotels for SOS hands (its in relation to revenue)
Legal and professional fees?
Visas or if we get sued
What goes ounder HSE?
Gloves, harhats, safety glasses, H2S class
What goes under fixed asset disposal?
Junking of tools
Who are in the field segment costs?
Management and so forth up to Groody
Up to Catherine
Who is under OFS Management??
Drummond to the CEO
What are 4 of the Domain groups and name 3 ppl who are champions
- Resevoir - Tex Burraco
- Petrophysicst - Peter Hook
- WI - Bob Whelty
What are the 3 new groups?
RPG, RCG, and Drilling
What are the functions of SLB?
HSE, Quality, Supply chain, IT, Legal, Marketing
What are the operations of SLB?
SLR, MEA, EAF, NAM, LAM, China, Shale Gas, IP
What is EMS?
Engineering, manufacturing, and sustaining
What is IBT and how is the percentage calculated?
IBT is income before taxes and its the best way to compare revenue bw districts and countries. Its % is calc by IBT/Revenue
What is EPU? and how does it work
Equipment plan update - it is forecasted for 8 quarters (CAPEX) and is a list on everything thats needed, updated every 2 quarters, and is sent way up the Food chain (Catherine) she will allocate for NAL, Groody will allocate then for the basins, and then Will allocate for his districts
What is CAPEX?
Capital expenditure, good indicator on investment and growth
- How much money will we get for Fixed assets
- usually around 10% of revenue
- 8 quarters, update every 2, allocated funds
Older ur tools get, more M&S u may need to fix, new toold, and M&S goes down
What is DIR? DSO?
DIR is days invoice and its how long it takes for as soon as job ends to the ticket being invoiced.
DSO - days sales outstanding, how long it takes to pay (Invoice, client sends back, we send back) get paid
What is Age profile?
NBV/GBV (20% is a good #) we are at 30 due to FMI-HD, Lithoscanner, ADT, etc
Too high, too much new tech, too low, might need some new tech
What are 3 asset indicators and what do they mean?
- GT is Revenue/GBV and should be >1
- ROA and that we have atleast $1 revenue for every $GBV
What is MBO?
- Management by objectives - FEW and SMART
- SMART - Specific, measurable, attainable, relaistic, time bound
FEW -Focused, Eight as optimum, written down
Field tech equipment (Anything used to generate revenue)
NFTE - Non-field tech equip - Laptops, pickup trucks, etc
What is ROI
Return on investment - How the investment is doing
ROI - inventory days (according to speedia)
What are 4 business policies and explain?
Business ethics policies - We are big on trust and repsect and it takes awhile to build that up with our clients - one ethical mishpa and that trust could be gone
Anticorruption - no bribes, no gifts given or received over $200
Competition law policy - no monopoly, no abuse of market share, do not withhold services
Confidentiality and Information security policy - do not give competitiros crucial info, do no leak logs to other competitors, etc
What is a cell concept
Smalled division of the organization - Each cell has a leader, and is in cahrge of them (training, maintaining equip, discipline, etc)
It can operate independantly
basic unit that performs a serviced to generate revenue
What is org chart
Me - Barbara-Jennifer-Will-Groody-Catheirne-Aaron Floridia-Satish-Paal
- Will support - Srikant, Jorge, David Fairhurst
- Groody - Chuck Catchings (Sales), Peter Brenner (Asset manager), Jeff Jacket (Maintainance), Satoshi (Personnel), Tom Pullick (HSE), Stephen Richmond (Quality safety)
What is a matrix organization
So we have the groups heirarchy then it branches out to OFS
Ex) Brian Groody reports to Catherine (WL) and to Robert Drummond (OFS)
Whats different bw shared and direct costs?
Shared costs is what a certain group splits cost (i.e Wills salary split bw his districts)
Direct cost is what is directly your own cost
How do we plan and forecast?
RAMP and CAPEX
RAMP = Revenue*Activity*Marketshare*Price
Balance sheet? Indicators?
Assets-Liabilities = Equity
What is liquidity?
The ability to have the cash to keep going
is good when NI is up, DSO under control, fixed assets at optimum, inventory as low as possible
What are accruals/provisions
Pain and gain at same time
i.e We lost a tool in hole - we accrued that money but first we have to pay for it
or we make provisions for tax that we accrue for the year
What are receivables?
Money owed to us by clients
What are top 5 clients in district?
Oxy, Energen, Pioneer, BHP, Apache
What are the top 5 clients in Basin?
Oxy, Energen, Pioneer, Apache, COG
What are the top 5 clients in USL?
Shell, Oxy, Chevron, Energen, Pioneer
What is the client organization like for the biggest cleint in district
OXY - Mark jones is sales, and in dallas
Drilling and geo report ro resevoir group
What is the market share for district?
- 13.2% Gross market share (Includes wells not logged)
- 28.2% net market share
What is market share for SW Basin?
- SW Basin Gross - 12.3% and Net - 29.7%
- NAL Gross - 14.3% and Net - 31.3%
Who are local competitors?
Weatherford, Halliburton, Baker Hughes, Allied, Cased hole services,
What is UBV?
Unique business value - its like if it werent for SLB's quality service and for a certain tool, then their company wouldnt be where it was at today
What is SWOT?
Anaylsis of competition - gives competitive advantage, but can also can hurt us in that we might not have what market favors
What is CSAM?
Competitors service assesment matrix - assesment of competitors technology, strengths and weaknesses
What is Value pricing?
Certain deals we can give clients - i.e if they log 20 wells with us 5% discount....
What is CRM? TAS?
Customer relationship manager - manages customer accounts, sales, relationships, etc
TAS - Target account selling - a sales plan for achieving success - business profile, opportunities, competitor analysis
What were the 3 majors we had last year
HRLA parting, cable parting during fishing, and TLD unrecoverable data
How many serious's have we had this year alone
What is considered a light?
less than 10K, and less than 4 hours
What is considered a serious?
- multiple lights
- truck replacement
What is considered a major?
- 100K to 1 Mil
- 24-48hrs LT
- Multiple serious
- loss of primary data
Equipment assurance indicators??
- NPT rate, JBI, CMS, Runs/misruns, closures on all reports
- DFP/DFR - ours is approx 4.6%
- Crosscheck - 9.1
What does FEC mean? CAB? MEC? ELE? OTH? SON? WHE?
- Field equipment cell
- Maintainence Efficiency
- Well head equip
What is Archies Equation?
What are dips
- They are tadpoles telling you direction of a dip
- The head part is magnitude and the tail part is downdip direction
Why would the client want dips?
- To see where layers are going
- To Drill up dip
- Find the trends
Why does caliper calibration need to be correct on FMI
It could cause to get wrong angles on dip
What is a rosette plot?
- Cluster every 100 ft on dip log
- 4x1 is less filtered - general structure
- 12x2 more filtered better overall pic
Why would you follow a strike instead of a fault?
The strike would intersect all the faults its opposite of a fault
What is a stratographic log and why would you want to look at it?
Looking at very small intervals (0.5 ft) and if you want to produce a river and therefore log several FMI wells and pick pts
Why FMI-HD here in Midland
We have high res. and high salinity wells, the other FMI easier to get saturated
If i wanted to confirm open fractures what other tool would I use?
FMI and UBI
Always run SS as well
What is in a petroleum system
Source, trap, resevoir, migration path, seal, T,P, and Time
- Trap - Structural and sedimentary
- Seal - Rock, no perm, cant pass through
What is difference bw Fault and fold?
Fold comes from ripping the rock apart, and fold comes from compression overtime
Difference bw Carbonate vs claustic
Carbonate is very well sorted, and claustic has decreased perm due to poorly sorted
- Carbonate - Reef
- Claustic - River fishing
How is a vug made?
Percipitation buildup and then dissolution
How is SS diff from DSI?
SS is characterized, more trans, more receivers, chirp freq, can measure all freq at once
What is default for ECS and its also the parameter we log in
Arkose and subarkose are what?
Parameters that can be change din ECS related to feldspars
What gives us best indicator in clay? Organics?
What percentage of clay do you need in order to perform Archies and consider a clean formation?
How could u see a water wet zone? and what is an example of one
High poro, low res - carbonates and sands are water wet before they come into contact with crude oil
How to tell if there are HC in well?
High poro, high res, clean
What is CMRs main product?
Pore size distribution
Lg pore size is better than small
How do you find archies (Sw) in a non clean zone?
Find a clean zone on log and get Rt from there Rw = Rt. Then go back to zone of interest and find Rt and use the previous Rt for Rw. Cross plot porosity
What does WCLP mean in ELAN?
Wet clay porosity
What is dual water model
- This derivation of the Dual Water equations is valid for any rock with any mixture of fluids
- It is possible to use the Dual Water Model to make a manual computation of a shaly zone.
- However computer programs are best equipped to handle the calculations.
What is effective saturation?
- Sw that is in free fluids
- Swf = poro (free water)/poro(effective)
How would u calc using Dual water model?
- Calc Rwf from RWA (Rwf = Rwa)
- Calc Rwb from nearby shale using Rwa method
- Get poro of cross plot
- Determine Vs from Gr
- Compute Swb from Vshale and WCLP
- Calc Swt and Swf
Poisons ratio? Youngs modulus?
- Mechanical property - how fat will a marshmellow get if u squish it
- Stress on a rock --> fractures
How do we know anisotropy?
- Times are different in slow and fast shear
- Left to right is different form north to south
What is anisotropy?
- Directionally dependant (not the same)
- Same in all directions
what are 4 types of dispersion?
- Homo Iso - Natural Rock
- Homo Aniso - Fractures parallel
- Inhomo Iso - damaged BH
- Inhomo Aniso - Crossover stress induced
Why are horizontal properties important and what wave can see these ?
Bc its direction of max/min stress and stonely waves can due to flowing up the BH (vertical wave)
Sonic scanner can correct for dispersion and so can DSI
T or F?
False, only SS can correct for it
What 2 elements are as clay?
- Illite and chlorite
- Dolomite and calcite
Why is ELAN present on sonic log
need it to do mechanical properties bc static young modulus gives pressure needed to make fracture compress but wont grow back
Why is ADT formation salinity independant?
Interacts with water molecule only
What do bins for CMR represent?
8 of them and each a diff pore size
What is a good percentage to perf at porosity wise?
If effective poro is >8% then maybe
ELAN density and ECS density, which one will be lower and why?
ELAN density due to kerogen
ELAN density higher than ECS dens when?
When heavier minerals are there like Chlorine
Whats life cycle of rock?
Its like a crayone at the Igneous model and then more u use it the more i breaks down (Sedimentary), then melts down into ME rock, and back to IG
What is diff bw Pay and Res flags?
- RES just takes into account poto
- Pay is perm, % HC, poro