This report is a survey of operating results for oil and gas producers in 1988. The report is drawn from the Institute of Petroleum Accounting's data base. It shows results of overall company operations, oil and gas operations, reserve data and standardized measure data for the industry and compared 1988 with 1987 on several important dimensions. Per barrel or mere and per share data are presented together with year-to-year change statistics for the industry as a whole and for primary industry segments. The results are useful to those wanting to see how the industry performed, generally and to compare their own firm performance with the industry averages.

In the Journal's annual survey, Mr. Spear presents comparative data from the financial statements of 197 oil and gas producing companies for the years 1988 and 1989. The data include selected items from the income statement, the balance sheet, and oil and gas reserve data for the companies. Data for the 25 largest companies are presented separately from the other 172 firms.

An updated and detailed performance report on majors, independents, pipelines/utilities, and diversified companies. For independents, benchmark ratios are subdivided into financial, exploration, strategy/success, and asset quality/operations performance categories.

This article reports on an industry-specific survey of the senior management of over 300 oil and gas companies on their awareness of fraud within their organizations conducted by KPMG's Forensic and Investigative Accounting Services in Calgary, Alberta.

This survey compiled by Arthur Andersen (UK) queried 63 companies on such matters as price forecasts, the environment, capital spending plans, abandonment, and future crude oil and natural gas demand.

This article provides an state-by-state overview of recently enacted changes in legislative and regulatory law pertaining to oil and gas taxation at the state level.

This article provides an overview of current legislative and regulatory changes. Including producing states and federal agencies: Alaska, Arkansas, Colorado, Energy Information Administration (EIA), Federal Tax, Louisiana, Montana, New Mexico, New York, North Dakota, Office of Natural Resources Revenue (ONRR), Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming.

This article provides an overview of current legislative and regulatory changes at the state level.

This paper provides a summary of the 2013 KPMG energy survey, including energy independence, natural gas use, managing the energy mix and leveraging technology.

An overview of current legislative and regulatory changes is provided in this article.

An overview of current legislative and regulatory changes by state.

An overview of current legislative and regulatory changes by state.

This article explores what middle market energy losses mean in terms of revenue declines, wavering investor confidence and the ability to compete with the leading industry players.

An overview of current legislative and regulatory changes by state.

The authors report on a research project to explore the use of 401(K) retirement plans by 51 companies in the petroleum industry. Such areas as the method of funding, nature of the plans, and participation of employees are examined

Petroleum company divestiture was a controversial issue in the 1970's. Forced divestiture activity has been seen to result in adverse stock price performance. This study addresses the stock price effect of one form of voluntary divestiture: the sale of assets to a third party. Overall results indicate that petroleum sell offs result in a positive stock price reaction. Moreover, petroleum sellers perform better than petroleum buyers.

In the Journal's annual survey, Professors Spear and Aldiab present comparative data from the financial statements of 90 of the largest oil and gas producing companies for the years 1988, 1989, and 1990. The data include selected items from the income statement, the balance sheet, and oil and gas reserves for the companies. Also presented are measures of profitability, solvency risk, and finding cost performance. The data is aggregate data reported separately for the largest 14 companies and the remaining 76 firms, subdivided by the firm's accounting method, either successful efforts (SE) or full cost (FC).

An annual feature of the Journal, this article offers an analysis of the operating and financial performance of 92 of the larger U.S. oil and gas producing companies. Utilizing a comparative format that provides insight into operating and financial trends within the oil and gas industry, this study compiles and analyzes financial statement data, including oil and gas reserve disclosures. Also presented are measures of profitability, solvency risk, and finding cost performance.

In this comprehensive article, Professors Gallun and Pearson thoroughly analyze the disclosure of the standardized measure of the discounted present value of future net revenues from proved oil and gas reserves that is required of publicly-held oil and gas producing companies by the FASB's Statement of Financial Accounting Standard No. 69. The authors suggest several approaches to making some of the analyses required, including one approach that gives "exact" results

Mr. Hendrix reviews the requirement of FASB Statement No. 69 relating to the disclosure of the Standardized Measure of Discounted Cash Flows Relating to Proved Reserves and illustrates the calculation of the impact of factors resulting in changes in value during the period.

Current international GAAP allows companies to choose either the full cost (FC) or the successful efforts (SE) method to report the results of their exploration and production activities. These two methods are conceptually different and can produce radically divergent reported results. Since the accounting method adopted determines the timing, recognition, and amortization of exploration and development costs, it follows that method of choice inherently confers some discretionary control over capitalized expenditures and thereby empowers managers to engage in income management.

Hedging is an important tool for reducing the risks inherent in the production of oil and gas reserves. This article describes the key to a successful hedging program including a commitment to dynamically manage the hedge portfolio over time to maximize its effectiveness as the market vacillates.

This article summarizes recent significant tax law changes and previews changes that could be coming, including oil and gas industry proposals.

Current chairman of the Indonesian Institute of Energy Economics and former Secretary General of OPEC, Dr. Subroto enjoys a unique perspective on the global oil and gas industry. As Asia begins its transformation into a major player in the petroleum marketplace, the industrialized West and the United States in particular must accommodate themselves to the shifting balance of power.

Mr. Ihloff's article is a detailed analysis of the typical oil and gas lease. He examines the rule of capture, ownership theories of oil and gas in various states, and the nature of the mineral estate before analyzing lease terms. Implied covenants are discussed in some detail.

This is the second installment of a four-part study on a meta-modeling approach to fiscal system analysis. This paper seeks to estimate the impact of royalty relief associated with the Deepwater Na Kika development in the Gulf of Mexico. A meta-modeling approach is employed to develop regression models for the take and investment criteria of Na Kika in terms of various exogenous, fiscal, and user-defined parameters.

In this the last installment of a four-part series on fiscal system analysis and design, meta-modeling is employed to couple the results of a simulation model with regression analysis. In the three previous installments, the meta-modeling approach was applied to concessionary systems and to examine the impact of royalty relief on the Deepwater Gulf of Mexico Na Kika development. The purpose of this paper is to quantify the influence of private and market uncertainty on the computation of the economic and system measures associated with the Angolan Girassol Deepwater field.

This is the third part of a four-part series on fiscal system analysis. Meta-modeling is not a new idea, but is novel and useful as applied to fiscal system analysis and contract valuation. Modeling take and economic measures in this manner is especially useful for contract negotiation strategies and plays a central role in understanding the intricate mechanics of fiscal system analysis. The purpose of this paper is to quantify the influence of private and market uncertainty on the computation of the economic and system measures of a field.

This the first installment of a four-part series which explores the influence of private and market uncertainty on the economic and system measures associated with various fiscal regimes. This paper focuses on the application of meta-modeling to fiscal system analysis and design. In Part IT, meta-modeling is used to examine the impact of Deepwater royalty relief on the Gulf of Mexico's Deepwater Na Kika development. In Part III, an analytic framework is developed for production sharing agreements, followed in Part N by an examination of the design of Angola's fiscal arrangement for the Girassol field development. Parts IT-N will appear consecutively in the next three issues of the Journal.

The wave of mergers of oil and gas producing companies in recent years has given rise to a lively debate over whether such mergers arise because of general undervaluation of oil and gas companies or result because assets of specific companies are, as argued by T. Boone Pickens, undervalued because of poor management. Etebari and Nanda propose a simple methodology for helping to determine if a specific merger is motivated by company-specific factors or/and general industry-wide causes. They apply this methodology to the takeovers of Conoco by DuPont and the acquisition of Marathon Oil Company by U. S. Steel.

Royalty accounting has entered a new era. While oil and gas producing states may have at one time applied fairly uniform royalty accounting rules, some states have recently adopted rules that vary significantly from the previously accepted norms. Producers must remain aware of the rapidly changing rules from state to state. This article offers some practical advice for producers and other royalty payers seeking to calculate royalty payments in the new era of royalty accounting.

Increased IRS examination activity is making a targeted and coordinated effort to cover specific issues and industries. This article describes the IRS structure, pre-examination considerations, the examination, and post-examination procedures.

The calculation and taxation of Section 1231 gain or loss on disposal of capital assets and business assets central to maximization of overall cash flows and effective tax planning are discussed in this article.

Ms. Badgett presents demographic data about mineral and royalty owners in the United States. She points out the lack of readily available information about the nature of royalties and the rights and obligations of royalty owners. She also discusses the efforts of the National Association of Royalty Owners (NARO) to assist royalty owners.

A short report that explains what the Extractive Industries Accounting Research Institute does at North Texas State University.

Given the current economic environment for crude oil and natural gas, landowners need to develop programs to encourage producers to lease properties for exploration. The Province of Alberta developed several incentive programs to spur leasing activities. These programs are highlighted in this article.

In December 2000 the International Accounting Standards Committee (IASC) distributed an "issues paper" as part of its extractive industries project. This paper, prepared by a project steering committee, presents the basic accounting and financial reporting issues for the mining and the upstream petroleum industries, as well as the committee's "tentative views" on some of those issues. This article presents a few of the most important matters under consideration, along with the tentative views of the Steering Committee if a tentative view has been reached, as well as a brief description of the structure and operations of both organizations as an aid to understanding the extractive industries project.

The authors criticize the FASB's Interpretation dealing with exploratory wells that are being drilled at the end of the accounting period. They argue that the Interpretation is faulty from both a theoretical viewpoint and a practical viewpoint.

Over the last several years, researchers at the Institute of Petroleum Accounting have investigated how petroleum industry professionals utilize finding cost statistics. This paper compiles and analyzes the results of the previous studies.

Messrs. Bell and O'Sullivan give a review of agreements that have traditionally been used in international oil and gas operations. They then discuss concession agreements, Joint ventures, production sharing contracts, and service contracts. Financial characteristics of the modern agreement, including bonus provisions, guaranteed exploration expenditures, royalties, taxation, and provision for Economic Development, are then discussed. Other typical general concessionary conditions are then reviewed.

In the late 1990s, the Department of Treasury began to focus in earnest on the growing difference between financial statement income and tax return income , the so-called book-tax gap. The result is the recently developed Schedule M-3. The article discusses the most important aspects of the new form and detail how this new book-tax reconciliation tool will improve the IRS risk analysis and audit selection process and the examination process.

Three acknowledged experts in the petroleum industry consider, among other topics, the following questions: What effect will targeted tax credits have on the petroleum industry? Will more competitive, open markets create more or less market volatility? What kind of capital is required to realize the potential of natural gas world-wide? What will be the impact of the long-term contracts?

Mr. Huang summarizes in T-account form the basic capitalization rules for publicly held companies using the successful-efforts method and the full cost method of accounting.

Ms. Wright reports on her research into the effects of news announcements on stock prices of oil and gas producing companies. Ms. Wright traced all news announcements relating to seven companies appearing in the written media during the three-year period, 1978 through 1980. She concludes that news stories regarding developmental and operational activities were most significant in affecting prices, while reports of explorational activities were also significant. However, announcements of financial events and other matters had little impact on stock prices.

The authors present the results of an analysis of changes of estimates of proved reserves as reported by 58 oil and gas companies for the years 1977, 1978, and 1979. The authors conclude that revisions of estimates of oil and gas reserves are not as significant as generally believed and that the FASB should not reject value-based disclosures on the theory that reserve estimates are unreliable.

Little research has been conducted into the question of what happens to audited companies after they have been given qualified opinion by their auditors. The research reported on in this article studied continuing adverse conditions and events, along with mitigating factors, following the issuance of qualified opinions of 34 oil and gas companies in the years 1981-1984. Even though only one company of the 34 involved actually railed to exist, many of the others continued to suffer adverse conditions.

This report presents the results of a survey of 22 companies using the full-cost method. The survey asked accounting officials in these companies how certain transactions and events that have caused accounting problems under this method are handled. A tabulation of responses is presented.

This issue marks the completion of ten years of publication of the Journal, In April 1991 the Journal asked UNT Professor of Marketing Joe Welch and Research Associate Jim Cappel to conduct a survey of its readership with three main goals: (1) to assess the level of reader satisfaction with the Journal; (2) to determine the interests and opinions of readers about various industry issues; and (3) to gather updated information about the characteristics of the Journal's readership.

Professor Heazlewood has examined the financial reports of 50 oil and gas companies in the United Kingdom. In this article, he summarizes the results of the study. Such topics as methods used to account for pre-production expenditures, financial statement titles and classifications, depletion and amortization methods, site restoration costs, cost centers, cost ceilings, reserve disclosures, and current costs are included in the study.

Due to the importance of being the first in the marketplace, many companies often ignore or do not have the time or resources to address various tax issues that arise when developing a company's e-business strategy. An understanding of how taxes will impact a company's e-business transformation can add value to the e-business strategies being implemented. This article raises a variety of tax issues that should be considered when a company is undertaking an e-business initiative.