Upstream Capital Costs Index (UCCI)
Candlefocus EditorCreating UCCI requires working with a large number of sources. IHS Markit collects detailed data on the cost of materials, facilities, personnel, and equipment associated with producing oil and gas projects. They then incorporate this data into the UCCI. Data sources used in constructing the index include company 10-K reporting, company analyst reviews, industrial studies, and government financial reports.
The UCCI is updated regularly and provides a comprehensive snapshot of the capital costs associated with producing oil and gas. This index is used by analysts, traders, and other industry professionals to quickly compare the cost of producers around the world. By utilizing the UCCI, users can benchmark the costs associated with producing oil and gas, analyze the profitability of projects, and identify areas that need improvement.
Additionally, companies can use the index to compare the costs of their own projects to the industry benchmark and look for areas where they can save money. They can also use the UCCI to quickly assess how projects in different countries and regions compare financially. This allows for a much better picture of any potential project’s merits compared to competitors in nearby regions.
In summary, the Upstream Capital Costs Index (UCCI) is essential for those interested in evaluating the costs associated with producing oil and natural gas. This index, developed and managed by IHS Markit, provides a comprehensive snapshot of the associated costs and allows users to quickly compare producers around the world. Companies can also use it to analyze their costs and benchmark them against the industry standards. The index provides users with an invaluable service, allowing them to ensure they are making informed decisions when looking at the overall costs of producing oil and gas.