A Method for Selecting Oil and Gas Economic Software for Microcomputer Systems (includes associated papers 15341 and 15679 )
Authors: Eckles W.W. , Pierson E.L. , Trekell R.E. 
Published: December 2007

The broad range of oil and gas economic software products formicrocomputers in today's market creates uncertainty and concern for users. There are multitudes of pricing structures aimed at just as many usertypes. This paper offers a possible solution to the dilemma of evaluatingand selecting economic oil and gas software. The approach is to classifythe user and define his requirements; to catalog the major softwarefeatures, organization, cost, and hardware requirements; and to match theuser and the software. Procedures and charts are provided to aid in theselection process. Certain microcomputer and software terms are defined inAppendix A; Appendix B provides a form for determining the user's software requirements.

Introduction

This paper is not an introduction to economics ormicrocomputers. Other papers cover these subjects verywell. We assume that the reader has made the decisionto purchase economic software for a microcomputer, has a microcomputer or is considering the purchase ofone, is knowledgeable in oil and gas economics, and hasa knowledge of his requirements.

The procedures and charts presented are based on ourexperience in economics, knowledge of programsavailable for microcomputers, and knowledge of microcomputersystems. The first law of program selection will beobeyed:select software that will meet job requirements, then consider hardware.

Matching Process

A six-dimensional matrix is used to present the matchingprocess. The six dimensions considered are (1) class ofuser, (2) user requirements, (3) major softwarerequirements, (4) software organization, (5) hardware requirements, and (6) true cost.

Class of User. It is essential that the user specify howhe is going to use the economic program. This will guidethe software vendor in responding to inquiries. Thebasic classes of users are shown in Appendix B, Part 1.

User Requirements. Closely related to class of user isthe complexity of calculations required. The three basicmileposts in complexity and program cost are, inincreasing order: pre-FIT (Federal Income Tax) only, pre-and post-FIT, and book value.

Major Software Requirements. Technical Features. The user must carefully detail his desires and requirementsfor product scheduling, pricing, expense, tax liability, investment analysis, and ownership features. This is the most time-consuming, difficult, and important part of theselection process. The user must communicate clearly tothe software vendor the importance of each feature he haslisted. By doing so, the need for a particular feature canbe weighed against the program cost.

A large group of commercial programs were analyzedto obtain a relation between technical features and cost. The results were generalized into three broad price ranges. Appendix B, Part 2 displays technical feature vs. price range. A procedure for using this chart in selectingsoftware will be covered in later sections.

Report Effectiveness. Required report effectivenessmust be evaluated by reviewing material supplied by thevendor or, preferably, by running the user's applicationswith the program. Appendix B, Part 3 shows basic elements that govern report effectiveness vs. cost.

User Friendliness. User friendliness is an overused termby the trade press and software vendors that can bequantified for an economic program. Appendix B, Part 4 listsfeatures that increase the ease of data preparation andentry, editing, controlling calculations, and selectingoutput reports for both the novice and experienced user.

Documentation. Clarity, readability, accuracy, andquality of manuals are the goals of all good softwarepackages. Quality is not always governed by cost. Verycostly software can be difficult to understand or can have incomplete documentation. The only satisfactory way tojudge documentation is to use it to test selected software. Some fundamental requirements for good documentationare described in Appendix B, Part 5. This part should becompleted for each program evaluated.

Software Organization. The selection of programorganization will depend on personal preference and workingenvironment. The most frequently offered arrangementsare described in Appendix B, Part 6.

JPT

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