Principles of Oil and Gas Accounting

Study Level: Basic
Delivery Method: Online self-study
Provider of Record: WebCE
Field of Study: Accounting
Prerequisites: N/A

Course Description:
This course provides an overview of the key principles with respect to oil and gas accounting. This includes an overview of the history of the petroleum industry, the organization of oil and gas companies, and the measurement principles of both oil and gas. This course includes specific topics related to reserves, different methods of accounting for costs incurred, impairments, asset retirement obligations, as well as DD&A (depletion, depreciation, and amortization). Finally, the course concludes with a discussion of the key supplemental oil and gas disclosures as well as both income tax and internal control considerations with respect to oil and gas producing activities.

Learning Objectives:
At the conclusion of this course, students will be able to:

  • differentiate between activities that are and are not oil and gas producing activities
  • recognize key characteristics of oil and gas products
  • differentiate between the different categories of reserves
  • differentiate between the types of wells drilled in oil and gas producing activities
  • differentiate between the types of costs incurred for oil and gas producing activities
  • identify key characteristics with respect to oil and gas leases
  • identify the method used and key components of calculating DD&A
  • recognize factors related to accounting for oil and gas sales
  • identify principles related to unproved and proved property impairments
  • identify the key characteristics of asset retirement obligations
  • identify the disclosures required by all oil and gas producing entities
  • identify the characteristics of significant oil and gas producing entities
  • recognize requirements with respect to supplemental oil and gas disclosures for certain oil and gas entities
  • differentiate between costs that are capitalized or expensed from an income tax perspective
  • identify internal control considerations related to oil and gas entities

Reviewed: Dec 2017

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