Oil and gas prices are at record highs, and are not expected to decline given the growing demand for these resources. Replacement reserves are located in more challenging locations, including deeper offshore waters and more remote onshore locations. Emerging markets, including China and India, have among the fastest growing consumption rates for hydrocarbons. Energy companies are diversifying their product mix, as non-traditional fuel sources become more price competitive, and alternative fuels are gaining interest. New investment in LNG, oil sands, oil shale, ethanol and other sources and products are showing rapid growth.
In such changing market conditions, oil and gas companies must also contend with changing regulatory requirements involving environmental, governance and reporting issues. The competitive environment is also changing, with national oil companies seeking greater participation in the global marketplace. M&A activities will likely increase as companies with large cash balances look for access to supply, or expansion into new markets.
Oil and gas challenges
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Financial reporting in the oil and gas industry*
National standards in other countries are being converged with IFRS. The global trend towards IFRS has gained significant further momentum with the US Securities and Exchange Commission's (SEC) commitment to the standards, beginning with its decision to drop the requirement for foreignlisted companies in the US to reconcile to US GAAP.
Need to know* The future of IFRS for the extractive industries
The IASB is undertaking a project that could change the face of accounting for extractive activities.
O&G Deals 2007 Annual Review: Mergers and acquisitions activity within the global oil and gas market
O&G Deals 2007 reviews M&A activity in the oil and gas industry. We examine both the rationale behind the overall trends and look at the key individual deals.
The wealth of nations: How well do countries' petroleum strategies align?
National oil companies are a leading force in the energy industry. PricewaterhouseCoopers finds that the competitive behaviors of NOCs can be grouped into five distinct clusters, ranging from restricted access to competing head-on with the international oil companies. By mapping oil and gas reserves in the NOC host countries against production levels, the rationale for these competitive behaviors becomes even clearer.
Petroleum accounting principles, procedures & issues, 6th editionThe text focuses on US financial accounting and reporting for petroleum exploration and production activities. The newly released 6th edition features numerous enhancements from earlier editions, incorporating more graphics and examples, along with regulatory updates from the Securities and Exchange Commission (SEC), the Federal Accounting Standards Board (FASB), Emerging Issues Task Force (EITF), Internal Revenue Service (IRS) and other bodies.
Value and growth in the liquefied natural gas marketThe future development of LNG as one of the fastest growing areas of the energy market worldwide will also require the development of new technologies and will depend on the pace in which they are put into practice. These challenges for the engineering sector and the shipbuilding industry will have a considerable influence on the investment programmes of governments, infrastructure and transportation companies as well as of private investors. Our report also covers these possible or, even, probable consequences.
LNG - A glossary of termsWith LNG playing an increasingly important part in the world's energy mix, familiarity with LNG terminology is needed by a growing number of professionals.
Real time. Delivering IFRS in the oil and gas and utilities industriesWith many companies at the end of their first full IFRS reporting period, we publish
Real Time, which examines the reality of reporting under the new standards for companies in the oil & gas and utilities sectors.
