Sales 2.0: Proven Reserves

February 23rd, 2010 by

By Pat Hinds

El Paso Corporation Reports 44 Percent Increase in Risked Unproved Resources

Nexen Announces Strong Fourth Quarter and Annual Financial Results Together With Excellent Reserve Adds

ConocoPhillips reports rise in 2009 proved reserves

Ithaca Reports Substantial Increase in Reserves

Recent headlines regarding energy production companies include the same theme “increased proven reserves”. This is a result of two drivers:

1/ Adoption of technology like SAGD, water flood, Co2 Injection, CBMand Fracing (See my blog on Western Canada Oil Table).

2/ On December 29, 2008, The United States Securities and Exchange Commission adopted new rules for disclosing oil and gas reserves. A notable difference in the new rules is inclusion of more unconventional resources as potential oil and gas reserves rather than as mining reserves.-

This is an example of how the use of technology and the adoption of new processes have had a major impact on an entire industry. The positive impact for companies that have adopted these changes is improved production, resulting in increased worth based on the future value of production. The challenging impact of increased production has been the short term over supply and reduced consumption which has resulted in pricing pressure on natural gas and oil.

The sales industry is facing similar changes with the introduction of CRM, social networking and improved processes creating a sales 2.0 environment. These changes are not going to happen overnight, but you start to see the results by companies that are embracing these changes.

Dr Pepper Snapple Group Achieves 56% Annual ROIWith Salesforce.com

Oracle plans to hire 2,000 workers

INSIDEVIEW ANNUAL REVENUE NEARLY TRIPLES IN BREAKOUT YEAR
Sales 2.0 Leader Defies Recession, Grows 273 Percent Throughout 2009

Companies that adopt sales 2.0 will see the benefit of tremendous growth in existing sales territories and from sales resources. The technology also drives down the cost of sales that could result in a change of earning structure for existing sales personnel who do not adopt sales 2.0 technologies.

Technology and new process adoption is having a profound impact on the energy sector and sales industries.

http://www.marketwire.com/press-release/El-Paso-Corporation-Reports-44-Percent-Increase-in-Risked-Unproved-Resources-NYSE-EP-1110715.htm
http://money.cnn.com/news/newsfeeds/articles/marketwire/0588343.htm
http://www.rigzone.com/NEWS/article.asp?a_id=86708
http://www.reuters.com/article/idUSTRE60Q0QC20100127

Topics: Sales Consulting