David Kirkpatrick

May 1, 2010

Two recent images of the oil spill in the Gulf of Mexico

Very frightening. I feel for the folks in New Orleans (one of my favorite cities). From what I’ve read the air is already becoming too noxious to comfortably breathe and it’s only going to get worse over the next month (the current estimate to stop the flow of petroleum into the Gulf.)

satellite image of gulf oil spill

satellite image of gulf oil spill

Also from the link:

On April 29, the MODIS image on the Terra satellite captured a wide-view natural-color image of the oil slick (outlined in white) just off the Louisiana coast. The oil slick appears as dull gray interlocking comma shapes, one opaque and the other nearly transparent. Sunglint — the mirror-like reflection of the sun off the water — enhances the oil slick’s visibility. The northwestern tip of the oil slick almost touches the Mississippi Delta. Credit: NASA/Earth Observatory/Jesse Allen, using data provided courtesy of the University of Wisconsin’s Space Science and Engineering Center MODIS Direct Broadcast system.

Be sure to hit the link for larger version of these satellite images and for more information.

February 5, 2009

Oil and gas news from Davos

Filed under: Business — Tags: , , , , — David Kirkpatrick @ 12:37 am

Here’s a blog post I did for EnerMax on an oil and gas investment report from the World Economic Forum in Davos. The consensus from industry leaders is the current low petroleum prices are affecting investment.

From the link:

The World Economic Forum in Davos hosted a presentation by leaders in the international oil sector. The consensus from energy leaders is the current price of a barrel of oil at around $40 is too low to prompt enough oil and gas investment for future demand. BP’s Tony Howard said a fair market price is somewhere between $60 and $80 per barrel of light, sweet crude.

Howard added the current low price of oil is due to little, or no, economic growth in most parts of the world and the subsequent short-term demand destruction. He said a higher market price for oil would help OPEC nations to balance their budgets and invest in oil to guarantee future supplies as demand ramps back up with a global economic recovery.

January 5, 2009

SEC changes oil and gas company reporting requirements

Filed under: Business, Politics — Tags: , , — David Kirkpatrick @ 9:29 pm

A release from the Securities and Exchange Commission:

SEC Modernizes Oil and Gas Company Reporting Requirements to Provide Investors With More Meaningful and Comprehensive Disclosure


Washington, D.C., Dec. 29, 2008 — The Securities and Exchange Commission today announced that it has unanimously approved revisions to modernize its oil and gas company reporting requirements to help investors evaluate the value of their investments in these companies.

“In the more than a quarter century since the SEC last reviewed its rules in this area, there have been significant changes in technology that have increasingly limited the usefulness of current disclosures to the market and investors,” said SEC Chairman Christopher Cox. “These updates to the SEC rules will help ensure more meaningful and comprehensive disclosure of information that, even though it does not appear on a company’s balance sheet, is of significance to investors in making informed investment decisions.”

John W. White, the Director of the SEC’s Division of Corporation Finance, added, “The Commission’s adoption of these rule amendments is the final phase of a key, long-term initiative of the Division of Corporation Finance and the Office of the Chief Accountant. These updated rules consider the significant changes that have taken place in the oil and gas industry since the adoption of the original reporting requirements more than 25 years ago.”

The Commission staff first recommended the issuance of a Concept Release for public comment. Those public comments were used to formulate the rule amendments that the Commission proposed earlier this year.

The new disclosure requirements approved by the Commission include provisions that permit the use of new technologies to determine proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserves volumes. The new requirements also will allow companies to disclose their probable and possible reserves to investors. Currently, the Commission’s rules limit disclosure to only proved reserves.

The new disclosure requirements also require companies to report the independence and qualifications of a reserves preparer or auditor; file reports when a third party is relied upon to prepare reserves estimates or conducts a reserves audit; and report oil and gas reserves using an average price based upon the prior 12-month period rather than year-end prices. The use of the average price will maximize the comparability of reserves estimates among companies and mitigate the distortion of the estimates that arises when using a single pricing date.

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The full text of the adopting release concerning these amendments will be posted to the SEC Web site as soon as possible.

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