Sept 13 The Securities and Exchange Commission
is pressing U.S. energy firms to disclose the amount of oil in
their reserves as compared with other, less valuable liquids
like propane, the Wall Street Journal reported on Friday.
Exxon Mobil Corp, Anadarko Petroleum Corp,
BHP Billiton Ltd and ConocoPhillips are among
companies that have agreed to reveal how much of the
hydrocarbons they can pump at a profit is crude, rather than
liquids derived from natural gas, the Journal reported.
Combining the reserves of oil and liquid gases can make it
harder for investors to figure out the amount of money a company
is likely to make by producing those fuels, the daily said,
The SEC has questioned at least 14 companies about how much
of their reserves are liquids versus oil since 2010, including
seven in the last 12 months, according to a WSJ review the
report cited. Eight of those firms, including the nation's
biggest oil and gas producer, Exon, agreed to provide more
disclosure in 2012.
Prices for U.S. oil futures, which stood at $89.84
per barrel at the end of December 2010, jumped to $108.21 per
barrel as of Friday.
However, some companies continue to report combined reserves
for oil and other liquids, prompting regulators to push them to
provide a break-up when the non-crude liquids are significant,
according to the Journal.
A review of the commission's correspondence with energy
companies suggests that officials insist on more disclosure when
liquid gases make up about 6 percent of a company's production
or reserves, the paper said.