The Securities and Exchange Commission is pushing big oil and gas companies to disclose how much of their reserves are oil, the Wall Street Journal said Friday.
A number of firms have already agreed to tell investors how much crude they can recover rather than liquids derived from natural gas.
The Wall Street Journal said BHP Billiton Ltd., ConocoPhillips, Exxon Mobil Corp. and Anadarko Petroleum Corp. said they’ll begin issuing more detailed disclosure on reserves.
While crude prices are $100 or more a barrel, the value of other liquid fuels is dropping on increasing supply.
The Wall Street Journal said ‘the SEC has queried at least 14 companies about how much of their reserves are liquids versus oil since 2010, including seven in the last 12 months; eight ultimately agreed to provide more disclosure, including the country’s biggest oil and gas producer, Exxon, in 2012.’
The SEC cited a 2008 rule requiring producers to report the different fuels they produce in material amounts.
The Financial Accounting Standards Board, which sets the rules for public-company audits, requires energy companies to report reserves of liquid gases separately when the amount is ‘significant,’ the Wall Street Journal said.