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Copyright of Revue du Financier is the property of Societe Cybel and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In order to understand the connotation and substantive relationship among oil and gas resources, reserves and production on a deeper level, this paper made an in-depth analysis and elaboration on the relationship among the three from the perspectives of theoretical logic and practical transformation, and presented suggestions for the development direction of resource assessment based on the analysis of application status. Resources, reserves and production are estimated quantities of oil and gas mineral resources under different levels of understanding. In China's classification system, reserves and resources are in a parallel relationship, and reserves and production are in an inclusive relationship. Both resources and reserves are geological meanings. The transformation from resources to reserves is affected by factors such as national spatial planning, mining right setting, theoretical technical and economic conditions, and the transformation from reserves to production is affected by factors such as reserves upgrading and transformation, whether to convert to mining, recovery factor, etc. China still has some deficiencies in resource assessment and release, as well as quantitative prediction of resources, reserves and production, which is also an important reason for the cognitive confusion of "China has rich resource potential but it is difficult to increase reserves and production". The enrichment and development of resource assessment contents and results application analysis will help to form a comprehensive and in-depth understanding of the current situation of oil and gas resources. It should be further explored and developed in the future from the following respects: mobility classification of assessment results, assessment of (undiscovered) recoverable resources and application analysis of results.

The purpose of the article is to examine the relationship between taxes and economic growth in Azerbaijan, which is rich in oil and gas reserves. The study covers the years 2005-2023. The growth of total and non-oil GDP is included in the model as a dependent variable, and the volume of capital, tax revenues to the budget, changes in oil prices, and total foreign trade are included as independent variable. When calculating quarterly indicators, inflation was taken into account and processed using the ARDLBT model. It has become known that tax revenues in Azerbaijan have a negative impact on the growth of both total and non-oil GDP in the long term. The effects of other independent variables were statistically significant and positive. In the short term, the impact of taxes on overall GDP has not been identified, but a negative impact on the growth of non-oil GDP has been found. Among other indicators, only changes in oil prices have a positive impact on overall GDP in the short term. These results are consistent with modern theories. Limited data on revenues by tax type made it impossible to assess the impact of various tax types on economic growth. The results support the idea of pursuing a policy that reduces the tax burden of this sector in order to increase non-oil GDP. A study of the impact of tax revenues on non-oil GDP growth can provide substantiated arguments for making decisions on the distribution of the tax burden to increase the weights of tax types that do not have a negative impact on economic growth. [ABSTRACT FROM AUTHOR]

Purpose: The authors assess the informativeness for stock markets of proven reserves of oil and gas, and embedded CO2 in those reserves. Design/methodology/approach: Based on a two-step regression approach, the authors attempt to test the relationship between proven reserves, CO2 embedded in those reserves and the stock market value controlling for the selection bias (i.e. the decision of managers to disclose environmental information about embedded CO2). Findings: Results, based on a sample of the US and Canadian firms are the following. Proven reserves increase the firm's value, while embedded CO2 reduces the stock market value substantially. Furthermore, the decision of managers to disclose information about embedded CO2 is positively related to analyst following, share price volatility, firm size, and institutional ownership. Originality/value: The current study assesses the long-term incidence of embedded CO2 (in oil and gas proven reserves) on firms' stock market value, while most studies are focusing on yearly CO2 emissions. [ABSTRACT FROM AUTHOR]

At present, in order to adapt to the reform of national oil and gas mining right system, the domestic oil and gas industry is exploring the competitive transfer of mineral rights and the exploration of reserve value, which is a new topic in China. In order to give full play to the fundamental position of market in resource allocation, and to understand the current status and existing problems of the transfer of oil and gas mineral rights, it was analyzed in this paper for the main practices of the international oil company's and our country's oil and gas mineral rights transfer, and the research progress of our country's oil and gas mineral right transfer system reform and the value of oil and gas reserves was summarized. Since the "13th Five-Year Plan", the besieged city with a high concentration of oil and gas mining rights in our country has been gradually broken, government supervision methods have been gradually changed, supporting policies and regulations have been improved day by day, and the third-party transaction service platform for block transfer has begun to operate. The value-based evaluation of oil and gas reserves is a key link in the transfer of mining rights and the paid transfer and transaction of oil and gas reserves. On the basis of systematically summarizing the valuation methods of reserves at home and abroad, taking block A in the southeastern part of Sichuan Basin as an example, the specific application of the unit reserve price method was practiced for the determination of key parameters of multiple types of oil and gas reservoirs.

The article formulates the main conclusions about the development of a large Shkapovsky oil field with an emphasis on the results of the development of the main objects – horizons DI and DIV of the terrigenous Devonian. The field was commissioned following the neighboring Tuimazinsky and Serafimovsky fields, taking into account the experience of a scientifically organized system for the development of these large platform oil fields in the Volga-Ural oil and gas region. It is shown that this experience was not taken into account much, especially in relation to the unsecured needs of oil production with capital construction, material and technical supply and social facilities. The potential of the field was realized in 18 years. Intra-contour and focal flooding, production technologies using electric centrifugal pumps (ESP), chemicalization of oil extraction processes, primary collection and transportation of products, oil, gas and water treatment technologies, etc., accelerated the development. Shkapov engineers and scientists own a number of innovations: realizing high development rates, means of preventing and eliminating salt-paraffin deposits, the introduction of double-barrel drilling, the development of high-performance ESPs, separate development of facilities, etc. At the same time, tasks were solved on eliminating ecological imbalance in the bowels and the environment, housing and public works. The current urgent problem of the field’s additional development is the activation of the production of residual oil reserves from oil and watered zones drilled with an unreasonably rare grid of wells. The final oil recovery coefficients of the Devonian objects are expected to be high, but, according to the author of the article, could reach CU 0.6.

The question we address is whether mandated disclosure about dispersion of nonfinancial asset values can provide information relevant to assessing firm risk. Using a sample of Canadian oil and gas (O&G) firms between 2004 and 2011, we find that the difference between the disclosed 10th and 50th percentiles from the O&G reserves distribution, which measures dispersion of the distribution, is positively associated with future total and idiosyncratic equity return volatility, systematic risk, and credit risk. We also find that disclosure of increased reserves dispersion is associated with weaker stock price reactions to increases in reserves and with increases in bid-ask spreads, both of which indicate the disclosures convey information about risk associated with reserves. Additional tests reveal little evidence of managerial opportunism in the reserves disclosures. Taken together, our evidence suggests that quantitative disclosures about the dispersion of nonfinancial asset values can provide information relevant to assessing firm risk. [ABSTRACT FROM AUTHOR]

This paper examines how oil and gas companies’ reserves growth affects their share price returns. In particular we examine three issues affecting the relation between reserves changes and oil and gas firm returns. First, we examine if investors value reserves replacement as a result of exploration activities differently to reserves growth through acquisitions. In the second analysis, we test if reserves replacement of oil reserves impacts stock returns differently than changes in gas reserves do. Third, we examine the impact of the Shale gas revolution and the subsequent oil and gas price divergence on the association between returns and replacement of oil versus gas reserves. The results suggest that investors seem to be indifferent to reserves replacement strategy (exploration or acquisition). However, we find that changes in oil reserves impact oil and gas company returns differently than changes in gas reserves does. Moreover, we find that there has been a structural shift in the relation between returns and changes in gas reserves (but not changes in oil reserves) after 2008, coinciding with the Shale gas revolution and the break in the oil-gas price link. This latter result can be relevant for understanding the impact of the recent fall in oil prices on investor valuation of oil and gas reserves.

Oil and gas reserves are the most important assets of oil and gas companies. A source of confusion for investors in oil companies, is that reserves quantities and values are uncertain estimates. Reserves are typically classified according to probabilities of recovery from underground reservoirs. All US-listed companies are required to disclose proved reserves but not probable reserves, thus leaving out potentially important information for investors and financial analysts. This study addresses the impact on market valuation of various classifications of reserves amounts. Using a data sample of 94 companies that do disclose information on probable reserves, we compare the relation between three classifications of reserves and oil company returns. While we find that information on probable reserves do not have an impact on stock returns measured over the entire time period, this is not the case since 2009, coinciding with the onset of the shale gas revolution.

The aim of the article is to evaluate the effect of oil and gas reserve increases on firm market value. The estimates are based on Olson’s market value prediction model – that nests the multiples P/E (price-earnings), P/B (price-book value) and in the oil industry, the P/R (price-reserves) ratio. Reserves are an important characteristic of these firms, but they are not part of equity under usual accounting practices. Using data from firms listed on NYMEX, the results suggest that reserves are positively correlated with firm equity market price. Yet, reserve increases without profit or equity expansions will be penalized by the market, if the reserve increases do not boost profits or the book value of the firm. The evaluation using price multiples appears inefficient, as earnings (or equity) and price proportionality is rejected in our empirical model.

Copyright of Brazilian Review of Finance / Revista Brasileira de Finanças is the property of Sociedade Brasileira de Financas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article deals with the new quality of situation in recent price -- hikes of crude oil as the most important fossile source of energy. It analyses the post war development which started rather smoothly, but was interrupted by two oil shocks and one mini -- shock since the 70's until 90's. The recent situation is quite different and no historical parallels or experiences cannot be used as for trends, first-round effects, nor the second-round ones. Recent price growth is lasting for almost a decade already, since 1998 with only minor spells. The authors are identifying some consequences and distinctive features of this rise, trying to introduce structural and geographical analysis for the world economy and international trade. They come into conclusion that the perspective is far from a good one and the prices will grow nominally and in real terms for a longer-term future. That is why the preparation for that is a sheer necessity in many aspects, which the limited frame of the article can only discuss in a rather scatchy way. Specific development of the recently steep falling of prices since September 2008 is not any supply -- generated oil shock. It is interconnected with global economic crunch and will probably show parallel trend. It brings about, anyway, some new general postulates the reaction about which the authors try to deal with too. [ABSTRACT FROM AUTHOR]

Abstract: A model was established to illustrate the relation between cumulative exploration investment and growth of total proved reserves on the basis of growth model of total proved reserves. The Data Envelopment Analysis (DEA) theory was used to give an optimal solution of the function of constructed productivity and development investment, and, together with an exponential oil & gas operational cost function, a model of the relation between development investment and oil & gas output was deduced. Based on the models of investment-exploration-development relations, and considering maximum profit, yield component, reserves-to-output ratio and production rate, an optimal function of multi-stage investment was established, which can result in multi-stage investment structure under given conditions with genetic algorithms. The method can provide scientific basis for oil companies to make a long-term strategic program and investment plan in oil and gas exploration and development, decrease the subjective blindness in the investment and bring about a reasonable and orderly exploration and development of oil and gas resources [Copyright &y& Elsevier]

Abstract: The article deals with current problems of exploitation and pre-exploitation measures in oil and gas resource replenishment in Russia. Specific procedures are proposed to be taken at different levels of state administration for improving the efficiency of reserves replenishment. The public private partnership is suggested as one of the effective means to solve the problem. The level of the state''s involvement in funding and management during regional exploration and prospecting survey is discussed. A systemic approach and a set of criteria for assessing the exploration success rate (at different stages) are recommended for use by the state, as subsurface owner, and for operating companies. In addition, several recommendations and action-oriented proposals are given for preparation of licensing programs that will ensure the preset rates of oil and gas reserves replenishment in the region. [Copyright &y& Elsevier]

Shell's overbooking of oil and gas reserves provoked one of the biggest corporate scandals to occur in Europe in recent years. This article has three themes: 1. The Origins of the Scandal: the shortage of oil reserves, weak internal controls, the dual company structure and the closed corporate culture. 2. The Impact of the Crisis: the resignations of top managers, the fines imposed by the regulators, the fall of the share price and the decline in employee morale. 3. The Remedial Action Required: to rebuild Shell's reputation and to restore the trust of the investors, customers and the general public. At the root of the problem is the central question “How did Sir Philip Watts and his colleagues arrive at a situation where they overstated the company's proven reserves of oil and gas by 30 per cent?” Royal Dutch/Shell is a leading British and Dutch company with an enviable reputation and a proud history. How could this have happened? Through analysing the scandal at Shell, the article probes into the fundamental causes of the present crisis in corporate governance. [ABSTRACT FROM AUTHOR]

This paper examines how oil and gas companies' reserves growth affects their share price returns. In particular we examine three issues affecting the relation between reserves changes and oil and gas firm returns. First, we examine if investors value reserves replacement as a result of exploration activities differently to reserves growth through acquisitions. In the second analysis, we test if reserves replacement of oil reserves impacts stock returns differently than changes in gas reserves do. Third, we examine the impact of the Shale gas revolution and the subsequent oil and gas price divergence on the association between returns and replacement of oil versus gas reserves. The results suggest that investors seem to be indifferent to reserves replacement strategy (exploration or acquisition). However, we find that changes in oil reserves impact oil and gas company returns differently than changes in gas reserves does. Moreover, we find that there has been a structural shift in the relation between returns and changes in gas reserves (but not changes in oil reserves) after 2008, coinciding with the Shale gas revolution and the break in the oil-gas price link. This latter result can be relevant for understanding the impact of the recent fall in oil prices on investor valuation of oil and gas reserves. [ABSTRACT FROM AUTHOR]

Oil and gas reserves are the most important assets of oil and gas companies. A source of confusion for investors in oil companies, is that reserves quantities and values are uncertain estimates. Reserves are typically classified according to probabilities of recovery from underground reservoirs. All US-listed companies are required to disclose proved reserves but not probable reserves, thus leaving out potentially important information for investors and financial analysts. This study addresses the impact on market valuation of various classifications of reserves amounts. Using a data sample of 94 companies that do disclose information on probable reserves, we compare the relation between three classifications of reserves and oil company returns. While we find that information on probable reserves do not have an impact on stock returns measured over the entire time period, this is not the case since 2009, coinciding with the onset of the shale gas revolution. [ABSTRACT FROM AUTHOR]