Oil And Gas Extraction Essay

Publicly traded companies are subject to the reporting and disclosure requirements of the Securities Exchange Commission (SEC). The laws that govern the securities industry were established to provide transparency to investors, creditors and shareholders alike. According to Hoyle, Schaefer & Doupnik, (2015) there are seven major disclosure requirements, the first being a five-year summary of operations to encompass sales, assets, income from continuing operations. Followed by a description of business activities, a three year summary of industry segments to include foreign and domestic operations, a list of company directors and executives, quarterly market price of common stock for the last two years, restrictions on the company’s ability to continue paying dividends, and finally, an analysis of the company’s financial condition, changes in the conditions and results of operation.

Valuation is the estimation of an asset’s value, whether real or financial, based on variables perceived to be related to future investment returns, on comparison with similar assets, or, when relevant, on estimates of immediate liquidation proceeds (Pinto, Henry, Robinson, Stowe; 2010). Correct valuation of real assets can present challenges to financial analysts. Different models can be used to arrive at the closest estimate of value and yet certain issues will always arise. This case attempts to tackle two approaches in real asset valuation: Discounted Cash Flow (DCF) analysis and the issues surrounding such, as well as the Black-Scholes Model for Real Options. Questions to be addressed in the study are:

There are a number of different reporting requirements that are needed to comply with the SEC. These include the provision of financial statements on a quarterly basis (10-Q) along with an annual report (10-K). These statements must adhere to a specific format that governs how financial statements are prepared, and how the information is presented. There are many sections to these forms that must be included. Moreover, the information must be accurate, and prepared to guidelines laid out in the Generally Accepted

Arens, A. A., Elder, R. J., & Beasley, M. S. (2013). Auditing and Assurance Services. Old Tappan, NJ: Pearson Education.

Financial reports consist of a statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, notes, directors' declaration, directors' report and the auditor's report. The financial statements need to be prepared in accordance with applicable accounting standards, making the necessary disclosures in order to be transparent and fully inform readers about the activities and financial situation of the entity.

This research project will analyze the recent changes in the disclosure requirements for income taxes. On July 26, 2016 the Financial Accounting Standards Board (FASB) published for comment a proposed Accounting Standards Update (ASU) on Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes. The FASB had received 52 comment letters by the due date of September 30, 2016. The Board issued the amendments in the proposed Update on Topic 740 as part of the disclosure framework project. The new ASU would change, add, and cancel previous income tax accounting disclosure standards. The new amendments would include requirements for all entities (public and private) to disclose certain

Valuation is the estimation of an asset’s value, whether real or financial, based on variables perceived to be related to future investment returns, on comparison with similar assets, or, when relevant, on estimates of immediate liquidation proceeds (Pinto, Henry, Robinson, Stowe; 2010).

Business: Name of the business, general nature of operations, structure (LLC, corporation, etc.), main owners, main operators, general information regarding revenue, when the business was started, source of startup funding, business tax returns (past 3-5 years), business profit and loss statements and balance statement (past 3-5 years), general ledgers and bank statements,

crude oil allowed in at the bottom of the tower at a time so that the

The US Securities and Exchange Commissions required many large public companies to submit financial reports in XBRL format, but organizations often concern about the cost and time that associate to transform all their financial data to XBRL. The Maryland Association of Certified Public Accountants, a privately held nonprofit company, recognized the value of XBRL to reduce transactional costs and improve operational efficiency. They believed converting their accounting data to XBRL format would deliver more benefits than the costs. With Altova MapForce and FlowForce Server, MACPA was able to transform all data from different systems to XBRL and automate data collection and extraction processes. Not only has the project driven operational efficiencies and increase data accessibility, but also potentially enabled MACPA to submit information to SEC in XBRL.

To improve our understanding of accounting concepts and become familiar with the contents of a company’s annual report (Form 10-k), and the proxy statement (DEF 14A) which are both filed with the Securities and Exchange Commission (SEC).

With almost 200 billion barrels of technically recoverable oil reserves located in the United States alone, it is not surprising why so many companies are adopting enhanced oil recovery techniques in everyday operations (“Total energy”, 2012). Oil production can be broken down into three main components: primary, secondary, and tertiary recovery. Primary recovery is when the well is first drilled and the natural pore pressure of the rock squeezes hydrocarbons out of the pore space. During this time the hydrocarbons are put under immense pressure and the majority of the liquids and gases will flow to the top. Secondary recovery is when water and gas injection are used to transfer the oil from the reservoir to the surface.

With the continued depletion of conventional oil and gas resources, the oil industry is now more than ever faced with exploration of unconventional and challenging oil and gas reserves. Such reserves call for novel drilling techniques and also require drilling fluids that can fulfil such drilling requirements. In most cases it’s OBM that can provide hole stability and it is also the best choice for drilling highly sensitive wells. But as these OBMs are being used, operators must strike a balance between their desired high performance standards and environmental concerns of their regulators and local communities. These stringent environmental concerns have led to research and development of many water based drilling muds but these muds still don’t offer the desired drilling performances like OBMs. We shall now look at the advantages and disadvantages of both OBMs and WBMs

Unconventional sources of oil and gas are becoming important for the journey of energy security. Conventional oil and gas will be unable to meet the growing demand requirements in future so there is a need to look for alternative resources of energy. In a volatile oil price movement, unconventional resources are viewed as important and economically attractive for future continuous supply.

Clearly, there is a need of an automated system that reduces the use of paper work and is much more efficient as