Upstream Capital Costs Index (UCCI)

What Is the Upstream Capital Costs Index (UCCI)?

The Upstream Capital Costs Index (UCCI) is a proprietary measurement index that tracks the composite capital cost of materials, facilities, equipment, and staff for oil and natural gas delivering projects. Cambridge Energy Research Associates (CERA), presently owned by IHS Markit, possesses and deals with the index.

Understanding the Upstream Capital Costs Index (UCCI)

IHS's Upstream Capital Costs Index (UCCI) offers a compact benchmarking device for analysts, traders, and others inspired by the oil and gas industry. Utilization of the index is useful in tracking and forecasting the exhibition of the underlying oil and gas properties.

The UCCI is only one of a family of indexes distributed by IHS Markit, a London-based data gathering and - scattering company. The company's indexes include:

• Upstream Operating Costs Index (UOCI), which tracks the changing costs for oil and gas field activities
• Downstream Capital Costs Index (DCCI), which tracks capital expenses for the construction of petroleum projects
• North American Cost Index (NACI), which researches the cost of creating oil and natural gas in North America
• Upstream Innovation Index (UII), which tracks the cost of effectiveness and design changes on a portfolio of ventures

Parts of the Upstream Capital Costs Index

The 28 ventures remembered for the UCCI address a diversified portfolio of liquified natural gas (LNG), pipeline, coastal, and offshore tasks in a scope of geographic areas. The index takes a gander at the changes to operating and capital costs throughout specific time spans.

Generally, oil and gas production isolates into the upstream, midstream, and downstream stages. The upstream segment of activities includes exploration and production (E&P) of oil and natural gas. Many huge coordinated oil companies join upstream activities with midstream and downstream tasks.

The composite cost of capital is a company's cost to finance its business and tasks. The determination of this amount is known as the weighted average cost of capital (WACC). The calculation includes duplicating the cost of every one of the individual capital parts by its proportional weight and afterward adding the outcomes. A high composite cost of capital demonstrates that a company has high borrowing costs.

UCCI and the History of CERA

Cambridge Energy Research Associates (CERA), laid out in 1983 in Cambridge, Massachusetts, centers around energy research and counseling for the energy industry. The company has the differentiation of being a leading authority on energy markets and related trends and statistics. CERA fills in as a warning source for government offices and private companies. IHS Energy, a conspicuous source of data connected with the oil and gas industry, acquired CERA in 2004. In 2009, the joint organization adopted the new blended name of IHS CERA, Inc.

Highlights

• The index functions as a benchmarking device for analysts, traders, and others keen on the oil and gas industry.
• Cambridge Energy Research Associates (CERA), presently IHS Markit, possesses and deals with the UCCI.
• The Upstream Capital Costs Index (UCCI) tracks the composite capital cost of materials, facilities, equipment, and staff for oil and natural gas delivering projects.