Oil & Gas Accounting


Oil and gas companies are significantly affected by special accounting rules and are always at the mercy of the business cycle. Industry accountants must also wade through unique tax issues. This seminar will:

  • Describe the complex terminology used in oil and gas accounting
  • Discuss oil and gas revenue and expenses
  • Provide an understanding of tax issues that affect the industry 



To provide accountants and auditors with specialized knowledge of accounting for oil and gas activities. You will learn the different types of oil and gas interests, which costs to capitalize and which to expense and the tax issues specific to the oil and gas industry.

  • Oil and gas industry: background and current developments
  • Types of oil and gas interests
    – Royalty interests
    – Working interests
  • Drilling activities
    – Exploration and development
    – Intangible Drilling Costs (IDC)
  • Production and costs
    – Production costs
    – Capital expenditures
  • Oil and gas reserves
    – Proved reserves
    – Valuation of oil and gas assets
    – Reserve report
  • Income taxes
    – Deductions
    – Depletion: cost and percentage
  • Full cost and successful efforts methods of accounting
  • Special issues and reporting requirements
    – Impairment
    – Asset Retirement Obligation
  • Prices
    – What determines price?
    – Historical and projected prices

Basic knowledge of financial accounting and reporting.


No advance preparation required.

Level of Knowledge: 


CPE Credit: 
NASBA Field of Study: 
Specialized Knowledge