Smith Rea Energy - experts in hydrocarbon accounting

Why is Hydrocarbon Accounting Important?

Errors and delays in hydrocarbon accounting can result in significant financial loss. In transportation and processing systems dealing with millions of dollars worth of product each year, even small errors can have significant financial consequences.

In recent years the enactment of the Sarbanes-Oxley Act of 2002 has resulted in a growing recognition of the importance of hydrocarbon accounting. The act requires companies to ensure full auditability of all data with a financial bearing on the company and makes Chief Executive Officers and Chief Financial Officers personally responsible for the fair presentation of financial information to investors.

This requirement to ensure fair presentation of financial information has resulted in the implementation of integrated internal control structures spanning the core techno-financial processes. Now, more than ever, it is essential that every effort is made to ensure allocation rules are comprehensive and equitable, computer systems on which they reside are correctly programmed, measurements are accurate and reporting is timely.