PEPS - Ratings & Rankings
How do you rank a country taking into account most exploration risk?
Do you need to assess relative exploration risk by country?
You can analyse the overall relative attractiveness of different countries based on assessments of prospectivity (E&P Activity), fiscal terms and political risk, according to your perceptions of the importance of each risk criterion.
IHS analysts have ranked countries covered in the PEPS service according to a variety of appropriate criteria. These criteria are combined to generate a PEPS Ratings & Rankings Index (RRI) number for each country. The RRI is based on a “rate & weight” methodology which is time sensitivity. Module updates enable country exploration risk to be tracked on a quarterly timescale and trends mapped.
You can also change any of these weightings to suit your own decision-making priorities or accept the PEPS analysts' default weightings.
Each of the risk criteria is defined by a set of variables. Each of these variables are rated on a scale of 0 to 5 (with 5 the worst) based on a set of predefined intervals. Each of the rated parameters are then weighted to create a total average weighted rating. Ultimately one country can be represented by one number based on this "rate & weight" system. On this basis each country can be ranked by overall risk, by prospectivity (E&P Activity), by fiscal risk or by political risk.
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The Ratings & Rankings Index has long been an industry standard for determining which countries are the most attractive for upstream investment and how this ranking changes with time. Click to enlarge. |
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Ranking based on E&P Activity with the Overall Ranking preserved for comparison (eg. Iran ranks number one for E&P Activity) but not Overall (as above). Click to enlarge. |
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The Ratings & Rankings module provides weighted total ratings for E&P Activity,
Fiscal and Political Risk which are then ranked by increasing overall Risk on a scale of 0 to 5.Click to enlarge. |