Not all barrels are created equal: understanding the difference between standards of regulatory disclosure can impact your investment decisions

2017 ◽  
Vol 57 (2) ◽  
pp. 506
Author(s):  
Arthur L. McMullen ◽  
Warren Chung
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Petroleum Industry ◽  
Investment Decisions ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Clear Understanding ◽  
Strategic Investment ◽  
Disclosure Requirements ◽  
The Difference

Petroleum industry stakeholders rely on estimates of petroleum reserves and resources as a cornerstone for making informed strategic investment decisions. Whether assessing a property or corporate target in a mergers and acquisitions process, seeking or providing equity or debt financing, developing upstream or downstream projects, engaging in sales contract negotiations or satisfying regulatory disclosure requirements, a clear understanding of the basis of these estimates is critical. Worldwide, several standards of resource estimation are widely accepted (Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS), Securities and Exchange Commission (SEC) guidelines and Canadian Oil and Gas Evaluation Handbook (COGEH)) and disclosure requirements depend on the regulatory jurisdiction (i.e. Australia, Australian Stock Exchange (ASX) Listing Rules Chapter 5; USA, SEC Regulation S-K; Canada, NI 51-101). Understanding the differences in these standards is imperative for correctly assessing value, development potential and project risks. Focusing on Australia, the United States of America and Canada, this presentation identifies key differences in these standards, and the potential implications affecting your strategic investment decisions.

Significant Differences in Proved Reserves Estimates Using SPE/WPC Definitions Compared to United States Securities and Exchange Commission (SEC) Definitions

2005 ◽  
Vol 8 (06) ◽  
pp. 520-527 ◽  
Author(s):  
D.R. Harrell ◽  
Thomas L. Gardner
Keyword(s):  
United States ◽  
Oil And Gas ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Classification Systems ◽  
Direct Function ◽  
Oil Companies ◽  
Publicly Owned ◽  
Hydrocarbon Reserves ◽  
The U.S

Summary A casual reading of the SPE/WPC (World Petroleum Congresses) Petroleum Reserves Definitions (1997) and the U.S. Securities and Exchange Commission(SEC) definitions (1978) would suggest very little, if any, difference in the quantities of proved hydrocarbon reserves estimated under those two classification systems. The differences in many circumstances for both volumetric and performance-based estimates may be small. In 1999, the SEC began to increase its review process, seeking greater understanding and compliance with its oil and gas reserves reporting requirements. The agency's definitions had been promulgated in 1978 in connection with the Energy Policy and Conservation Act of 1975 and at a time when most publicly owned oil and gas companies and their reserves were located in the United States. Oil and gas prices were relatively stable, and virtually all natural gas was marketed through long-term contracts at fixed or determinable prices. Development drilling was subject to well-spacing regulations as established through field rules set by state agencies. Reservoir-evaluation technology has advanced far beyond that used in 1978;production-sharing contracts were uncommon then, and probabilistic reserves assessment was not widely recognized or appreciated in the U.S. These changes in industry practice plus many other considerations have created problems in adapting the 1978 vintage definitions to the technical and commercial realities of the 21st century. This paper presents several real-world examples of how the SEC engineering staff has updated its approach to reserves assessment as well as numerous remaining unresolved areas of concern. These remaining issues are important, can lead to significant differences in reported quantities and values, and may result in questions about the "full disclosure" obligations to the SEC. Introduction For virtually all oil and gas producers, their company assets are the hydrocarbon reserves that they own through various forms of mineral interests, licensing agreements, or other contracts and that produce revenues from production and sale. Reserves are almost always reported as static quantities as of a specific date and classified into one or more categories to describe the uncertainty and production status associated with each category. The economic value of these reserves is a direct function of how the quantities are to be produced and sold over the physical or contract lives of the properties. Reserves owned by private and publicly owned companies are always assumed to be those quantities of oil and gas that can be produced and sold at a profit under assumed future prices and costs. Reserves under the control of state-owned or national oil companies may reflect quantities that exceed those deemed profitable under the commercial terms typically imposed on private or publicly owned companies.

Extractives transparency gathers pace in the West

2016 ◽  
Keyword(s):  
Oil And Gas ◽  
Commodity Prices ◽  
Balance Of Power ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Good Time ◽  
Power Structures ◽  
Financial Transfers ◽  
Content Type ◽  
The Us

Subject Developments on transparency in the extractives sector. Significance Transparency legislation on the extractives sector progressed in December 2015 when the US Securities and Exchange Commission published a revised proposal to enhance the transparency of extractive (ie, mining and oil and gas) industries' payments to governments in producing countries. The aim is to provide information on financial transfers which can then be used by civil society, media and other stakeholders to hold those governments to account. The United States was a pioneer in this area, but litigation against its original initiative delayed its progress. Impacts Low commodity prices shift the balance of power from producing countries to consuming ones. That makes producer countries more susceptible to pressures for reform and may be a good time to push for greater transparency. However, opaque and inaccessible power structures in producer states could still limit NGO capacity to use more data to reduce corruption. A test of this will be whether the issue of resource transparency gains traction within the G20.

The machine in the market: Computers and the infrastructure of price at the New York Stock Exchange, 1965–1975

2017 ◽  
Vol 47 (6) ◽  
pp. 888-917 ◽  
Author(s):  
Devin Kennedy
Keyword(s):  
New York ◽  
Stock Exchange ◽  
The United States ◽  
Securities And Exchange Commission ◽  
New York Stock Exchange ◽  
Technical Object ◽  
Regulatory Oversight ◽  
Market Data ◽  
York Stock Exchange ◽  
Securities Industry

This article traces the development and expansion of early computer systems for managing and disseminating ‘real-time’ market data at the most influential stock market in the United States, the New York Stock Exchange (NYSE). It follows electronic media at the NYSE over a roughly ten-year period, from the time of the deployment of a computer called the Market Data System (MDS) through debates surrounding the National Market System and the passage of the 1975 Securities Acts Amendments. Building on research at the archives of the NYSE and the Securities and Exchange Commission (SEC), this history emphasizes the regulatory and managerial contexts in which market data became computerized. The SEC viewed market automation as both necessary for the viability of the securities industry and a mechanism for expanding regulatory oversight over the venues of stock trading. Moving from the MDS to later technical projects in the late 1960s and early 1970s, this article charts the changing meaning of electronic governance in a market increasingly conceptualized as a technical object. Adding to recent work in the social studies of finance and financial technologies, this history sites early NYSE computerization programs within managerial efforts to consolidate control over the clerical labor of financial markets, and in contests between regulatory and market institutions. It concludes by exploring the differing forms of electronic governance activated in these efforts to bring computers into the market.

scholarly journals Fluxo de Capital Estrangeiro e Desempenho do Ibovespa

2006 ◽  
Vol 4 (1) ◽  
pp. 79
Author(s):  
Roberto Meurer
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Stock Exchange ◽  
The United States ◽  
Country Risk ◽  
The Other ◽  
Stock Index ◽  
Foreign Investors ◽  
The Difference ◽  
Domestic Companies

In this paper it is discussed and empirically tested the influence of foreign investors flow of resources on the Ibovespa index of the Sao Paulo Stock Exchange from January 1995 to july 2005. Other important variables are considered in the test, including a stock index of the United States, internal and external interest rates, the markets liquidity, exchange rate and country risk. The foreign influence is measured by the difference between the purchases and sells of foreign investors in the market of their participation in the Brazlian market capitalization. The effect of the inflow of resources was not detected straightly, but through an increase of the liquidity, what is compatible with the hypothesis that the foreign investors represent an increase of the base of stockholders of the domestic companies. The inflow of resources, on the other hand, anticipates the behavior of index. Country risk, exchange rate and liquidity of the market were important to explain variations of the Ibovespa.

Arabs and the future of oil

2013 ◽  
Vol 6 (4) ◽  
pp. 582-591
Author(s):  
Walid Khadduri
Keyword(s):  
United States ◽  
Oil And Gas ◽  
Energy State ◽  
Petroleum Industry ◽  
The United States ◽  
Economic Benefits ◽  
Shale Oil ◽  
Oil Export ◽  
Depletion Rate ◽  
Sharing Responsibility

The discovery of shale oil and gas in North America (the United States and Canada) is considered a ‘game changer’ in the global petroleum industry. It provides an opportunity for the United States to achieve the energy self-reliance it has sought since the 1970s. It is also expected to allow the United States, the largest petroleum consumer and importer globally, to focus its attention on maximizing the economic benefits and comparative advantages of becoming a self-reliant energy state. It could also enable the United States to reprioritize its strategic interests, sharing responsibility for the security of the oil export routes in the Gulf with its European and Asian allies, rather than shouldering that task almost single-handedly, as is presently the case. However, realization of the advantages that North American shale oil and gas discoveries are purported to bring about will depend on whether the depletion rate can be slowed down and minimized and on whether the cost of production can remain competitive compared with that of conventional hydrocarbons. It will also depend on whether the United States will allow a large percentage of its shale petroleum to be exported, rather than be consumed domestically.

scholarly journals Progress of Technological Innovation of the United States’ Shale Petroleum Industry Based on Patent Data Association Rules

2020 ◽  
Vol 12 (16) ◽  
pp. 6628
Author(s):  
Jong-Hyun Kim ◽  
Yong-Gil Lee
Keyword(s):  
United States ◽  
Association Rules ◽  
Technological Progress ◽  
Oil And Gas ◽  
Petroleum Industry ◽  
Oil Industry ◽  
The United States ◽  
Shale Oil ◽  
Patent Data ◽  
Technological Developments

This study analyzed the technological progress of the United States’ shale and tight petroleum (natural gas and crude oil) industry based on the association rules of its patents. According to the findings, although the production of shale oil and gas began in 2007, evidence of increasing technological developments in this industry assessed by patent applications began to appear only in 2010. In addition, the results showed that two distinct technological domains developed in 2010. Moreover, frequently developed technology classification networks are likely to contribute to the growth of this industry.

Nigeria readies for far-reaching, complex oil reform

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Petroleum Industry ◽  
The United States ◽  
Structural Reforms ◽  
Content Type ◽  
Global Context ◽  
Vested Interests ◽  
The Government ◽  
Policy Direction ◽  
Oil And Gas Sector

Significance The announcement mirrors the structural reforms first envisaged in the long-delayed Petroleum Industry Bill (PIB). President Muhammadu Buhari's policy direction in the oil and gas sector will determine the economy's stability in a global context of declining oil prices, set the pace for other important economic reforms, and be indicative of the government's ability to rein in vested interests. Impacts Brent crude's latest price drop from early June reveals persistent downside demand pressures. Nigeria has partially offset the slowdown in exports to the United States; Indian refineries recently became the largest buyers. Economic vulnerabilities will persist so long as the government fails to diversify its base of foreign exchange receipts.

The Nigerian Stock Exchange and the Private Investor

1995 ◽  
Vol 6 (3) ◽  
pp. 183-202
Author(s):  
Nuruddeen A. Abdullahi ◽  
Alan Wakelam
Keyword(s):  
Significant Influence ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Listed Companies ◽  
Clear Understanding ◽  
Years Of Experience ◽  
Market Information ◽  
Share Ownership ◽  
The Media ◽  
Private Investors

The findings of this research suggests that the Nigerian private investors like their counterparts elsewhere (e.g. the U.S.A. and the U.K.) do like both capital appreciation and dividend income. Furthermore, the majority of the respondents preferred to invest in ordinary shares rather than in any other securities on the Stock Exchange. Indeed it was found that other forms of securities, especially the government development stocks or bonds, were little known to the respondents. The majority of the respondents (57.9%, Table 4) appeared to take investment decisions on their own initiative rather than acting on the advice of stockbrokers or other experts, and that they often rely on company reports for market information. This is perhaps due to lack of clear understanding of the role of the stockbrokers in investment advice. The respondents showed a great reliance on three main sources of market information for investment decisions [company reports (34%), stockbrokers/or experts (27%), and the media (27%)]. However, as other authors have shown the average Nigerian investor may not be financially literate, the great reliance on company reports implies that the private investors take investment decisions by guessing at a company’s financial progress and position. The media has shown its value in providing market information and educating the public on matters of investment but there is also a need for enhanced financial journalism in the country. Taxation does not appear to have any significant effect on personal share ownership in Nigeria. The large majority of the respondents showed their ignorance of tax rate on dividends. This may be partly because the tax on dividends was relatively small at the time of the survey (1992) and did not warrant serious consideration by the private investors whose size of share ownership is normally small. The effects of the background characteristics of the respondents, (education and training, portfolio holdings, number of shareholdings, frequency of contact with stockbrokers, and years of experience of share ownership) did have an effect on people’s understanding of listed companies. With the exception of the size of shareholdings and years of experience of share ownership all the presented variables have a significant influence on the respondents’ understanding of listed companies (see Table 9). Training in business and/or finance has no significant influence on the method of taking investment decisions. Both respondents with significant training and those who had little or no training in business and/or finance appeared to rely on their own initiative when taking investment decisions. It is also clear that, although the majority of the respondents expressed their satisfaction with the services rendered by the Stock Exchange, a great many respondents seem to have reservations on the efficacy of the services of the stock exchange and the market in general.

Climate and Energy Emergencies

1981 ◽  
Vol 62 (5) ◽  
pp. 623-631
Author(s):  
William J. Quirk
Keyword(s):  
Oil And Gas ◽  
The United States ◽  
Current Data ◽  
Department Of Energy ◽  
Climate Information ◽  
Climate Data ◽  
Cold Winter ◽  
Oil Supply ◽  
The Difference ◽  
Heating Degree Days

On 3–5 November 1980 an informal meeting was held of Department of Energy (DOE) and National Oceanographic and Atmospheric Administration (NOAA) personnel and contractors to discuss what kind of climate information was needed to prepare for possible energy emergencies. At the meeting it was pointed out that presently available world oil supplies and stockpiles should be adequate to prevent any oil supply shortfalls this winter (1980–81). However, any additional supply shortfalls or a world economic recovery that increased oil demand could be expected to cause problems in coming winters. The most important effect of climate on energy under these circumstances is its influence on the demand for heating fuel. The difference in oil and gas demand between a warm and a cold winter can be the energy equivalent of 400 million barrels of oil in the United States alone. This is comparable to the projected size of the strategic petroleum reserve. Because of the large impacts even small energy shortfalls can have on the nation's economy, it is essential that we make the best possible use of the nation's energy stockpiles. DOE and NOAA are collaborating on assembling a climate data base that will give much more detailed information on temperatures and heating degree days than was ever available before. Current data, forecasts, and historical data back to 1931 will be available for some 350 regions throughout the country. These data, together with more accurate models of the use of energy for heating, could give far better estimates of the amount of fuel reserves that are needed for a cold winter. Because these data show that not all parts of the country are cold at once, they could be used to develop plans for sharing fuel throughout the country. Since smaller reserves would be needed, significant additional reserves would be available to tide the country over during a cold winter and international oil supply shortfalls. The most important recommendation arising from the conference was that potential climate information users be contacted, both to make them aware of how the newly available climate information could be used and to find out what additional data requirements they might have.

Pengaruh Keputusan Investasi, Kebijakan Hutang Dan Kebijakan Dividen Terhadap Nilai Perusahaan

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Ivan Somantri ◽  
Hadi Ahmad Sukardi
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Mining Sector ◽  
Dividend Policies ◽  
Negative Effect ◽  
Debt Policy ◽  
Debt Policies

This study aims to determine how to influence simultaneously and partially investment decisions, debt policy and dividend policy on firm value in mining sector companies listed on the Indonesia Stock Exchange for the period 2013-2017. The research method used in this study is descriptive and associative methods. The population in this study were mining sector companies listed on the Indonesia Stock Exchange in the period 2013-2017, which amounted to 43 companies. The sampling technique used in this study is non probability sampling with purposive sampling method, so that the number of samples obtained is 8 companies. While the data analysis used in this study is panel data regression analysis with the fixed effect method. The results of the study show that partially investment decisions and debt policies have a positive effect on firm value. While dividend policy has a negative effect on firm value. In addition, the results of the study simultaneously show that investment decisions, debt policies and dividend policies affect the value of the company. The amount of investment decisions, debt policy and dividend policy in contributing influence to earnings management is 34.14%.

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