A Tool for More Effective Financial Analysis

Investments totaling billions of dollars annually are now required of the nation's energy companies in order to keep up with the nation's needs. Getty Oil Company itself is now investing $200 to $300 million annually. This requires many significant investment decisions each year, and the fortunes of the corporation are tied to the wisdom of the choices. The incentive to excel is a strong one---avoiding even a few bad investments can save millions of dollars.This incentive has fostered a dynamic evolution in our financial analysis. Decisions once necessarily based on limited information and short-cut discounted cash flow calculations are now supported by much more thorough and rapid analysis. Financial analysts who seldom never used computers are now directly and effectively exploiting this resource to extend their capabilities. A key factor in this progress is PAMS, the Plan Analysis and Modeling System.PAMS is designed for a more complete approach to financial investigation than most other systems. It is a computer system that does all phases of analysis work. It has features for: extensive data management, complete yet flexible calculations, and tabular and graphic management reports. The PAMS approach is used today for hundreds of applications in Getty, from project analysis to a corporate model, from price forecasting to acquisition and divestment analysis.PAMS has had a major impact by helping to achieve: Better investment decisions, Improved long-range planning, New more effective approaches to financial analysis, Company-wide introduction of new concepts such as risk analysis.