What is it

Energy Asset Management (EAM) is the management and administration of regulatory, financial and contractual compliance pertaining to energy assets; in short EAM is the business or non-technical side of the energy industry.

EAM is a new way of working. It removes the silos in which each of the disciplines have operated historically and integrates them into an operating team where the role of each discipline is understood and the other members/disciplines in the team and information of common interest is shared; dramatically reducing duplication of effort, costly errors and chances of being in non-compliance with the various regulatory bodies.

Energy Asset Management

 

EAM Careers

General Characteristics

Energy Asset Management (EAM) positions are key to the success of business processes in the oil and gas industry. EAM personnel work mostly in an office environment and may be involved in - establishing and interpreting agreements with other companies, carrying out due diligence required for entering into new contracts, analyzing costs, reporting production, maintaining leases, ensuring licenses are in place and regulations are followed.

Energy Asset Management personnel focus on the details while keeping the bigger picture in perspective. They are able to multi-task, work independently or within a team, have good listening and communication skills, and are business minded.

Career Paths

Typically, positions in Energy Asset Management are within the following general areas – Joint Ventures, Operations Accounting, Production Accounting, Mineral Land, Surface Land, and Wells and Facilities Asset Management.

Joint Ventures: specialists establish and interpret unit & unit operating, production facility ownership, processing and transportation agreements. They provide input into the development of units and development and design of production facilities, resolve business and technical conflicts and establish and maintain good relations with joint venture associates. They work closely with land specialists, accounting experts and technical teams that include engineers, geologists and geophysicists.

Operations Accountants: work closely with mineral and surface land, joint ventures, technical teams, and marketing specialists to ensure the essential components of the income statement and balance sheet are properly reported. They keep on top of the bottom line, from production costs to overhead rates to penalty/payout interests, ensuring the creative twists in contracts are accurately represented in the financial results.

Production Accountants: manage the calculation and reporting of volumes produced and the associated royalties. They analyze invoices, calculate gas/oil ratios, water cuts, production rates, pay and receive royalties and ensure regulatory reporting is completed in an accurate and timely manner. Production Accountants work closely with Joint Ventures, partners, government, business units, and Land.

Mineral Land: professionals establish and interpret agreements with government agencies, landowners, and other companies to secure access to below-ground mineral rights and distribute risk among various parties to meet corporate goals. They maintain leases, licenses and contracts, keep track of wells, pay mineral rentals, and ensure obligations to all applicable parties are met. They work closely with technical teams, joint venture specialists, and accounting experts.

Surface Land: specialists negotiate and establish agreements with government agencies, individual stakeholders, and other companies to secure access to above-ground surface rights. They maintain various agreements, ensuring obligations to applicable parties are met and regulatory guidelines are followed. Surface Land specialists work closely with landowners, regulatory agencies, and other departments within an energy company.

Well and Facility Asset Management: professionals interpret and analyze operational activities to ensure  compliance for Regulatory and Partner obligations for the life of the well / facility from concept to abandonment. They work with all disciples including technical teams, Regulators, Partners, and other EAM disciplines to ensure well data is accurate, changes are tracked, and application processes are followed. They have in-depth knowledge about all types of wells and facilities and are experts in the regulatory reporting of the operational activities. The data generated from this team supports corporate reporting requirements and operational goals of the organization.

Download pdf Version  June 28, 2010

Identified Need

The energy industry is evolving faster than ever before, driven by fluctuating commodity prices and improving technology. Various disciplines within the industry are being integrated into natural business groupings to enhance effectiveness and efficiency. Demographics indicate as "boomers" retire, a shortage of skilled and properly trained personnel will result. Employers face a shortage of staff and a workforce that wants more control over their time. Staffing/employer needs are also changing and Energy Asset Management is part of this evolution.

Specifically

Benefits to Industry