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Lawmaker Urges Oil-Reserve Accounting Overhaul

"The time is past for lengthy study," said U.S. Rep. John Dingell of Michigan, the ranking Democrat on the House Energy and Commerce Committee, in a letter to regulators, in reference to sharp, unexpected cuts by Anglo-Dutch energy group Royal Dutch/Shell Group in its reserve accounts. The U.S. House of Representatives Financial Services Committee is scheduled to hold a hearing on Wednesday on energy reserve accounting issues. Dingell asked regulators in May for an update on reserve accounting. He said he was underwhelmed by a seeming lack of urgency in their responses.

Reuters

Posted on Tuesday, July 20 @ 21:33:42 PDT by admin

Most read story about Public Policy; Political and Legal News:
ARE We Out of Gas Yet?

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Re: Lawmaker Urges Oil-Reserve Accounting Overhaul (Score: 1)
by Sprengtporten on Wednesday, July 21 @ 01:23:27 PDT
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I have heard 2 theories concerning bad reserve accounting:

1. Upwards. It is in the interests of the producer(s) to exaggerate the reserves in order to lure investors.

2. Downwards. It is in the interest of the producer(s) to belittle the reserves in order to pump up the prices.

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