|
AAPG, SPEE may certify evaluators
The American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers are considering establishing a program to certify reserves evaluators. The organizations said in mid-May that they will decide this year whether such a program would be feasible.
The organizations said they are responding to concerns over recent petroleum reserves write downs, and to a call by regulators, the U.S. Congress and investors for reforms in how the oil and gas industry estimates and reports petroleum reserves, “the lifeblood and main asset of companies with drilling and production operations.”
“The program to train and test petroleum engineers and geologists will be modeled to some degree after the one for certified public accountants,” said Dan Tearpock, who is leading the initiative for the AAPG.
If the program is determined to be feasible, the AAPG and SPEE would then consider a business plan and budgeting for the program.
Last year, public companies filing with the U.S. Securities and Exchange Commission reported reserves quantities valued at $2.5 trillion, a mere 3 percent of worldwide reserves, the organizations said.
“In the U.S. and globally, reserves are not audited by independent accountants and are not estimated by evaluators that have to meet any formal standards,” said Tearpock. “The problem is international in scope.” Lack of uniform standards The AAPG Division of Professional Affairs has found a lack of uniform standards in definitions and recommended practices and training for reserves estimating and reporting. “A joint committee of the AAPG and SPEE received an enthusiastic endorsement from both associations to continue its investigation and focus on five specific areas: qualifications, recommended practices, reserves definitions, certification and ethics,” said Tearpock.
Managing members of the committee are Dan Tearpock, AAPG; Richard Miller, SPEE; and Ron Harrell, SPEE. Over the past year, subcommittees have been formed to evaluate industry standards and the need for a formalized certification program. More than 40 volunteers from seven professional societies were involved in the study’s first phase.
AAPG President Patrick J.F. Gratton said, “The current intersociety Exploratory Committee on the Certification of Petroleum Reserves Evaluators may be one of the most important initiatives of its kind under way by the AAPG at this time.”
Peter Rose, AAPG president-elect, stated, “It is vital that the investment community and government agencies have reliable reserves estimates. The professional associations sponsoring this initiative must show the investment community and governments that we have the expertise, ethics and responsibility necessary to provide reliable reserves estimates. This initiative may be a pivotal program to ensure consistent, reliable reserves estimates in the future.”
| 