Hydrocarbon reserves valuation management

Given the importance of the reserves disclosures for investors and regulators, it is surprising to them that there has been a lot of focus, which is elaborated on in Chapter 2, on how the reserves data are prepared and reported on by companies. Currently, reserves disclosures in financial statements are not audited by independent public accountants, nor are they audited by any petroleum industry-designated independent evaluators. Performing the critical “reserves evaluator” function currently does not require any recognised certification program or other mandatory industry-wide training requirements.