Recap of the 2015 North American Petroleum Accounting Conference
Author: Jeff Ronsse
The 42nd Annual North American Petroleum Accounting Conference held in Dallas, Texas, offered valuable information on a wide range of accounting issues affecting the energy industry—from recycling produced water to new technology and the acquisitions market.
The opening session was presented by Bill Charneski, president of the Oil and Gas division of Origin Oil. Charneski focused on the economic benefits of recycling produced water. Charneski discussed both the public relations pressure on oil and gas firms to conserve water and the challenge of having the main oil and gas producing regions located in high-drought areas. He discussed new, more economical technologies to clean and use water produced from the oil and gas extraction process. Charneski believes recycling the produced water could save an average of $6.30 per produced barrel of oil in certain regions.
Gregory Zuckerman, special writer for the Wall Street Journal, discussed his book, The Frackers. The book includes stories of individuals who developed fracking, saw the future of oil and gas and pushed technology to help develop U.S. reserves.
Claude Seaman, chief accounting officer for Continental Resources, presented “Complexities in Accounting for Property Acquisitions and Divestitures.” The presentation discussed common issues related to oil and gas acquisitions, such as inventory, imbalances, suspense accounts and determination of opening balance sheets and post-close true-ups. Seaman’s key points were the importance of understanding the purchase agreement, obtaining the right level of detail for calculations and identifying and resolving ambiguous wording in purchase agreements before a transaction occurs.
The conference offered many other valuable sessions covering topics such as the impact of leasing and revenue standards, joint interest billings and common related issues, reserves, developing industry leaders and calculating depreciation, depletion and amortization and impairment.
If you have any questions on these topics, contact your BKD advisor.