SEC Head Attends
D.C. Reserves Meet Draws Diversity
SEC Chairman Christopher Cox, center, chats with conference co-chairs Mike Black of SPE, left, and past AAPG president Peter R. Rose.
Discussions about the changing nature of reserves accounting and the need for more consistent definitions were the top themes of the International Multidisciplinary Reserves Conference, held in late June in Washington, D.C.
AAPG was co-sponsor of the meeting, in cooperation with the Society of Petroleum Engineers, the Society of Petroleum Evaluation Engineers, the World Petroleum Congress and the United Nations.
Conference co-chair Peter R. Rose noted that the invitation-only conference attended by 130 persons met its goals, attracting a mix of geologists, engineers, bankers, regulators, accountants and economists and engaging in high-level discussions with technical professionals who define and generate reserve estimates.
Christopher Cox, chairman of the U.S. Securities and Exchange Commission, spoke to the group at a reception, underscoring the “powerful tool of interactive data” being instituted at the SEC.
At a luncheon earlier, SEC director of the Division of Corporation Finance John White noted how “the growing trend toward truly global, high-quality accounting methods has heightened the need to converge interactive data taxonomies and software tools to allow for cross-border analysis of companies. ”
He told the group of a volunteer program where companies are invited to participate in the SEC’s new interactive reporting system, where data is pegged in a standard protocol for reporting purposes. Anadarko and Petrobras are participants from the energy sector.
“Taxonomies for the oil and gas industry are in development,” White said, and, like the taxonomies for all other industries, will include data tags for all U.S. GAAP financial statement and footnote disclosure.
With about a third of the attendees from outside the United States, it also was noted that a system has been proposed to smooth the differences in international reporting versus U.S. accounting requirements.
In another luncheon address, Guy Caruso, director of the U.S. Energy Information Administration, led the group through the newly released EIA outlook to 2030, which projects world energy to grow 57 percent from 2004 to 2030, despite the relatively high world oil and natural gas prices.
However, the report surmises that the higher prices at about 2015 will dampen growth for oil and liquid fuels use; energy shares of natural gas, coal and renewable energy sources are expected to grow over this period.
Liquids consumption is still expected to grow strongly, however, reaching 118 million barrels per day in 2030. The United States, China and India together account for nearly half of the projected growth in world liquids use.