Building a world of
resilient communities.

MAIN LIST

 

BP may be forced to downgrade reserves

BP is preparing to downgrade up to 3 per cent of its oil reserves, according to investment bank Goldman Sachs.

One City analyst said: "This would be pretty embarrassing after everything Shell has been through." There is no question of wrongdoing on BP's part.

BP must file its annual report for the US regulator by the end of the month, stating its financial performance, including its oil and gas reserves, based on Securities & Exchange Commission (SEC) guidelines.

Unlike US oil majors and Anglo-Dutch rival Shell, when BP reports results, it books reserves based on a measure known as UK Statement of Recommended Practice (Sorp).

In the past, it has argued that there is no material difference between Sorp and SEC reporting requirements. But Goldman Sachs, which has close ties to BP, said that because of the intense scrutiny of reserves, following the Shell reserve misreporting scandal, BP "may be required to provide a detailed reconciliation" between the two measures.

Goldman Sachs said that, under Sorp, BP could show a higher reserve estimate than under the SEC system. It added that the company could downgrade reserves by up to 3 per cent. This would bring them down by 400 million barrels of oil, from 13.3 billion in total reserves.

BP declined to comment.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


Revisiting the Shale Oil Hype: Technology versus Geology

Irrespective of price, geology is trumping technology in the Bakken and …

Peak Oil Review - Mar 30

A weejly review including Oil and the Global Economy, The Middle East & …

Why This Tea Party Leader Is Seeing Green on Solar Energy

As a founder of the Tea Party movement, Debbie Dooley may be an unlikely …

2014 biggest year ever for solar, but oil price threat looms

Will only time tell whether it will be enough to keep solar panels cheap …

Rethink the Grid: Personal Power Stations

Rethinking the grid is quickly emerging as one of the hottest topics.

Goldilocks Is Dead

For oil, the Goldilocks zone has ceased to exist. This will have staggering …

US enters undulating crude oil production plateau in 2015

Feel-good-outlooks make the TV audience happy, but sleepy.