There isn't much to say about revenues because it is a result between production (Click here) and prices externally determined. 


We can see that since 2009 oil revenues growth was both affected by an astonishing triple digit growth in production and an increase in prices. Historically, since 2009, oil production rose at an annual CAGR of 415%, oil prices 24% and revenues combine a 540% annual CAGR.

In 2012, oil production rose 162%, oil prices rose a modest 5% and revenues rose almost 180%.

Quarter-on-Quarter growth in oil production has a 24% CAGR, prices are very volatile and revenues combine a 27% CAGR. On the last quarter, revenues declined about 5% as a 9% drop in average prices of oil erased the 5% increase in production. Also, this was the first quarter the company records such a low figure on production growth.


Regarding gas revenues, growth has been very affected by the price downtrend. Historically, since 2009, gas production rose at an annual CAGR of 532%, gas prices 4% and revenues combined a 557% annual CAGR.

In 2012, Gas production rose 146%, gas prices decreased 24% on average and still revenues recorded an 87% growth rate.

Quarter-on-Quarter growth in gas production has an 18% CAGR, prices are very volatile and revenues combine a 15% CAGR.  On the last quarter, revenues declined aalmost 40% as both production and price fell 20% and 22% respectively. 


Although production is evenly balanced between Oil and Gas, the main source of revenue comes from Oil. Of course this is because of market prices. Different applications for both products make them less correlated and as Gas markets begin to be oversupplied, prices fall. Obviously, as commodities, these prices are main targets of speculation.

Nowadays, Oil prices are very related to global growth which is being driven by the biggest eastern economies. I won't make predictions about the evolution of the revenues or production balance, but regarding the production you mus understand oil and gas are both extracted from the same wells. Regarding revenues, it's all about the price dynamics, finding the drivers and predict their evolution based on macroeconomic data and currency prices (they are quoted in USD).

Tópico: Revenues

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