Building a world of
resilient communities.

MAIN LIST

 

Oil reporting must be more 'transparent'

Oil companies must be forced to report more fully and transparently about their oil and gas reserves within annual reports and financial statements, according to Big Four firm Deloitte.

The accounting firm has urged the oil and gas industry to improve the information available to markets and restore investor confidence in reserves reporting.

Last year, oil giant Royal Dutch/Shell shocked the global corporate and investment communities when it revealed that it had overstated its oil reserves by billions of barrels.

The scandal led to the departure of many of its top executives, including CFO Judy Boynton, and a restructuring of its board.

Current reserve disclosures and definitions, on which many investment decisions are based, commonly follow US Securities and Exchange Commission (SEC) rules introduced in 1978 focusing on 'proved' reserves.

However, petroleum engineers globally have since significantly updated the structure and definitions for categorising reserves.

Peter Newman, managing partner of Deloitte's global oil & gas group, said: 'Regulators should work together globally and adopt the definitions and categorisation structures already endorsed by the petroleum experts and widely used within the industry today.

'Confidence has waned in this area following the restatements over the last year of reserves previously reported and focusing only on "proved" reserves information is limiting and prone to misinterpretation.'

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Make connections via our GROUPS page.
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

Tags:  

Simply calling the US an oligarchy is not enough

It’s not every day that an academic article in the arcane world of …

The New Economic Events Giving Lie to the Fiction That We Are All Selfish, Rational Materialists

Jeremy Rifkin's new book, “The Zero Marginal Cost Society,” …

Millennials and the Slave Economy

Similarities abound between today’s declining civic ethos and mid …

Pop-up Stores Build Local Economies Through Sharing

The idea behind pop-ups is to allow new businesses to test their products …

Don't Leave BitCoin to the Libertarians! (Or, why Your Movement Needs Open Source Money)

Among activists one often finds an aversion to even thinking about money.

The Global Banking Game Is Rigged, and the FDIC Is Suing

Taxpayers are paying billions of dollars for a swindle pulled off by the …

Why Green Growth Won’t Transform the Economy

In discussions of the future of economic growth, ‘business as …