Petroleum Industry Accounting
About the Skill Module
This skill module explores the difference between accounting and economics – and there is a world of difference. Oil and gas companies need both accountants and economists to run their businesses and they serve different functions within a company. But even beyond serving different functions they speak different languages and live in different worlds. In this skill module, we gain an appreciation for accounting terms, methodology and, most importantly, clarify the differences between accounting and economics.
Managers, engineers, explorationists, field accounting supervisors and other personnel who need to develop or improve their skill and understanding of basic economic analysis and profitability of petroleum exploration and production.
You Will Learn
- Interpret the financial accounting section of annual reports
- Calculate depreciation, depletion, and amortization (DD&A)
- Separate cash flow from profit
- Recognize non-cash charges
- Focus on cash flow when selecting economic metrics for project evaluation