This study analyzes the reliability of the reserve estimates of 106 leading oil and gas companies over the years 1985-1994. The authors compare accounting method choice, reserve engineer choice, and industry type on reserve estimates and then examine the sensitivity of the results to the location of proved reserves (domestic vs. foreign) and the nature of proved reserves (oil vs. natural gas).

An Empirical Examination of the Reliability of Proved Reserve Quantity Data. Spear, Nasser and Lee, Richard N., Summer 1999, pp. 1‑23.

Capital budgeting decisions made by firms in the petroleum industry are extremely important to their financial performance. Based on a survey of oil and gas firms, this paper analyzes the procedures used by both large and small firms to evaluate project returns and incorporate risk.

An Inquiry into the Capital Budgeting Process and Analytical Procedures Utilized by Firms in the Oil and Gas Extraction Industry. Boudreaux, Denis O.; Ward, Dan R.; Boudreaux, Phillip; and Ward, Suzanne P., Summer 1999, pp. 24‑34.

Oil and gas companies are free to choose either full cost or successful efforts accounting procedures. Unfortunately, differences in accounting for costs incurred in exploring for oil and gas reserves cause problems in comparability across firms using two different methods. This paper examines the cash flow statement reporting of oil and gas companies under SFAS 95.

The Impact of Accounting Choice on Cash Flows Reporting under SFAS 95: The Case of Oil and Gas Companies. El Shamy, Mostafa A., Summer 1999, pp. 35‑53.

The evolving nature of the oil and gas industry and the proliferation of joint operating agreements have exacerbated the difficulty of providing accounting that properly reflects equality among all parties in a joint venture. COPAS has developed and published standardized accounting procedures to address this problem, but they have not always succeeded.

Evolving Trends in COPAS Accounting Procedures Favor Operators in JOAs. McClellan, Al E., Summer 1999, pp. 54‑77.

In an appeal filed by Sunnyside Coal Company, the Tenth Circuit Court of Appeals recently affirmed that premiums for coal miners' retirement benefits that were assessed against a bankruptcy estate under the 1992 Coal Industry Retiree Health Benefit Act are taxes incurred by the estate.

Coal Act Premiums are Taxes, Entitled to Administrative Priority in a Bankruptcy Estate. Lewis, Judy D. and Crumbley, D. Larry, Summer 1999, pp. 78‑85.

The continuous flux of the upstream petroleum industry often frustrates the best efforts of management to track and assess performance. The authors advocate the use of a system of performance metrics called Integrated Performance Management (IPM) which combines a strategic scorecard with value chain analysis.

Integrated Performance Management in the Energy Industry: From the Board Room to the Wellhead. Bauschka, Chris and Gruman, Robert R., Summer 1999, pp. 86‑99.

The FASB has delayed the effective date for FAS 133, Accounting for Derivative Instruments and Hedging Activities, until fiscal years beginning after June 15, 2000. Other issues addressed by the FASB at its April meeting include the future of pooling of interests accounting, impairment and disposal of assets, and consolidated financial statements. The Auditing Standards Board (ASB) addressed the problem of financial statement misstatements. Congress may become involved in standard setting. COSO releases a landmark study on fraud in financial reporting.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Summer 1999, pp. 100‑121.

A report from the executive director of the Council of Petroleum Accountants Societies on the spring Board meeting and the activities of the various committees and subcommittees.

COPAS: An Update. Gear, Jon, Summer 1999, pp. 122‑131.

After several delays, the FASB has issued a progress report on Accounting for Obligations Associated with the Retirement of Long-Lived Assets. The major issues covered include liability recognition and obligating events, recognition and allocation of asset retirement costs, initial measurement of asset retirement obligation liabilities, and subsequent measurement of asset retirement obligation liabilities.

Current Developments in Environmental Issues. Wright, Charlotte, Summer 1999, pp. 132‑135.

This issue marks the debut of a new regular feature on global petroleum issues by Daniel Johnston. In this first column, he characterizes the current climate facing companies and governments today and discusses the relationship between contract terms and prospectively.

Current Developments in Production Sharing Contracts and International Petroleum Concerns. Johnston, Daniel, Summer 1999, pp. 136‑142.