Canada’s new standard of reporting oil and gas reserves is leading the wayA Canadian perspective on a Deloitte Oil & Gas study, “Presenting the full |
Over the past couple years, the oil and gas industry has come under fire for the way some companies report their reserves. In a highly publicized case, Royal Dutch/Shell Group announced in January 2004 that it would re-categorize certain proved oil reserves. Shell later declared that it had overstated reserves by about 20 percent — the equivalent of 3.9 billion barrels — a disclosure that seriously impacted the company’s stock price and reputation.
This case brought to light the issue of oil and gas reserves and illustrated how incorrect or misleading reserve reporting leads to valuation problems and weakens investor confidence. “ Presenting the full picture,” a recent report from Deloitte’s Global Oil & Gas Group, examines the issue of reserve reporting, and provides recommendations for developing more comprehensive reporting guidelines for the industry worldwide.
In Canada, the oil and gas industry is leading the charge for more transparent and accountable reserve reporting. “Canadian oil and gas reporting standards are among the most rigorous in the world right now,” says Cheryl Dereniwski of Deloitte’s Global Oil & Gas Group, and Newman, who is its managing partner, recommend that global regulators update their reporting requirements and expand the scope of mandatory disclosures in annual reports and financial statements.
Download the study “ Presenting the full picture .”
Presenting the full picture
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