Before I proceed, let me address one obvious question. Who on earth am I, and am I qualified to talk about such a complex sector?
Let me tell you that I have been dealing with oil since 2003. That year, as a fresh member of the Ernst & Young Valuation team, I was sent to Siberia to evaluate the gasoline stations of Russia’s second-largest oil producer, Yukos. The following year I was building my first DCF model of an independent oil company and discussed with engineers their assumptions for the hydrodynamic models of the field development.
Later, as a buy-side analyst in a London-based hedge fund, I was responsible for a position in Imperial Energy, acquired by ONGC in late 2008.
The following year, I took my oil & gas experience to the next level, joining one of the leading oil & gas research teams on the sell side. The opportunity gave me a chance to make about 30 site visits to places like North Caspian, Niger Delta, Yamal, West Siberia, Texas, Turkey, Serbia and Germany (I was part of a small group of analysts who visited Nord Stream facilities in 2018).
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