Despite coming under increasing criticism over the past few years, the oil and gas industry has continued to grow not only in size and power but also in influence on its related industries. For example, the shear impact of the oil and gas industry and their specific requirements has resulted in the demand for a whole new set of criteria for accountancy services. This can partly be attributed to the heavy investment into areas such as research and development by the industry which can be hard to track. The general success or failure of a project in these areas can alter how it is reported in order to ensure that the involved expenses can be appropriately capitalised upon.
With this in mind, the oil and gas industry use 2 key forms of accountancy reporting. There is always an accountancy issue when it comes to the various methods of accountancy and financial reporting. These are known as "successful efforts" (SE) and "full cost" (FC). For successful effort reporting methods costs are capitalised for successful efforts where as unsuccessful efforts (also known as dry hole projects) and their resulting associated operating costs are charged against the revenues for that period. In contrast to the successful efforts reporting method where projects are reported separately depending on how positive an outcome they have the full cost reporting method groups all expenses relating to new projects.
Depending on how these expenses are reported will impact upon how a company reports their cash flow and net income. However in an attempt to develop a more cohesive procedure for financial reporting within the oil and gas industry FASB recently stated in the Standard of Financial Accounting Standard that all oil and gas companies are required to use the SE reporting method. However with all these variations in financial reporting and the associated impacts which it can have if done incorrectly have resulted in universities recognising this gap in accountancy skills. By doing this many universities and professional institutes and bodies have developed offshore oil and gas industry financial reporting and accountancy qualifications to reflect the variations in procedure and requirements. For example Robort Gordons, which is based in Aberdeen the European hub for the oil and gas industry, now, offers oil and gas industry, focused degrees such as a Masters in Oil and Gas Accounting. These qualifications aim to combine generic and industry specific modules to respond to the increasing demand for multidiscipline accountants for the industry. By encouraging the development of employees with a combined academic and industry experiential knowledge it is clear that no matter what specialism you work in there will always be that demand for a multidisciplinary approach.
Ebele Kemery is a member of the Global Fixed Income, Currency & Commodities (GFICC) Group. Based in New York, Ebele is the head of Energy Investing within the Commodities team. Prior to this role, she provided institutional client relationship management and tailored risk management solutions in the Investment Bank’s Global Commodities Group.
Ms. Ebele Kemery has proven track record of robust and consistent profitable returns in commodities. And Increased assets under management through strong performance and development of customized solutions that leverage a wide variety of market techniques.
To read more, please click here!
With this in mind, the oil and gas industry use 2 key forms of accountancy reporting. There is always an accountancy issue when it comes to the various methods of accountancy and financial reporting. These are known as "successful efforts" (SE) and "full cost" (FC). For successful effort reporting methods costs are capitalised for successful efforts where as unsuccessful efforts (also known as dry hole projects) and their resulting associated operating costs are charged against the revenues for that period. In contrast to the successful efforts reporting method where projects are reported separately depending on how positive an outcome they have the full cost reporting method groups all expenses relating to new projects.
Depending on how these expenses are reported will impact upon how a company reports their cash flow and net income. However in an attempt to develop a more cohesive procedure for financial reporting within the oil and gas industry FASB recently stated in the Standard of Financial Accounting Standard that all oil and gas companies are required to use the SE reporting method. However with all these variations in financial reporting and the associated impacts which it can have if done incorrectly have resulted in universities recognising this gap in accountancy skills. By doing this many universities and professional institutes and bodies have developed offshore oil and gas industry financial reporting and accountancy qualifications to reflect the variations in procedure and requirements. For example Robort Gordons, which is based in Aberdeen the European hub for the oil and gas industry, now, offers oil and gas industry, focused degrees such as a Masters in Oil and Gas Accounting. These qualifications aim to combine generic and industry specific modules to respond to the increasing demand for multidiscipline accountants for the industry. By encouraging the development of employees with a combined academic and industry experiential knowledge it is clear that no matter what specialism you work in there will always be that demand for a multidisciplinary approach.
Ebele Kemery is a member of the Global Fixed Income, Currency & Commodities (GFICC) Group. Based in New York, Ebele is the head of Energy Investing within the Commodities team. Prior to this role, she provided institutional client relationship management and tailored risk management solutions in the Investment Bank’s Global Commodities Group.
Ms. Ebele Kemery has proven track record of robust and consistent profitable returns in commodities. And Increased assets under management through strong performance and development of customized solutions that leverage a wide variety of market techniques.
To read more, please click here!
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