In oil and gas, the term “Production Allocation” is often filed under operations or sometimes finance — a necessary back-end process that ensures the numbers add up.
After nearly two decades working with operators across five continents, I can tell you this:
Allocation isn’t just about measurement. It’s about fairness, trust, and control.
And it’s not just an oil and gas issue. Across industries — power, shipping, pharmaceuticals, mining — businesses that move high-value physical product depend on accurate allocation to ensure commercial certainty and operational integrity.
So why does it still get overlooked?
Because it's invisible… until it fails.
When allocation breaks down:
- Joint ventures unravel
- Regulators ask questions
- Asset values come into question
- Engineers lose sight of what's actually happening in the field
At Elite Energy, we’ve built an entire discipline around exception-based surveillance and product data management and allocation — not to add process, but to reduce noise.
Done right, allocation becomes a strategic lever for audit readiness, partner trust, and executive clarity.
This Week: Our Perspective in Depth
Later this week, we’ll be publishing a paper that draws parallels from across industries — from electricity grids to global shipping — showing why allocation is a business function, not a back-office one.
If you're an Executive Leader, a CFO, a Commercial Director, or even a Board Member, I encourage you to take a moment to read it. Because understanding your allocation process could be the most important risk you’re not yet managing.