I'm Shocked, Shocked...
13 July 2004
AP (via Forbes). OPEC member Venezuela accused the Paris-based International Energy Agency of damaging its reputation as a reliable oil supplier by questioning Venezuela's crude production figures.
Energy Minister Rafael Ramirez insisted that Venezuela, the world’s fifth-largest oil exporter, is producing 3.1 million barrels of crude a day, exceeding its OPEC quota of 2.9 million barrels per day. It also provides about 14 percent of U.S. oil supplies.Analysts have said PDVSA’s production is closer to 2.5 million barrels a day. They cite alleged lack of investment after the strike and lost expertise.
There are those who suggest that Venezuela is not the only one inflating reserves and/or production. The entire reserves and production estimate process is much too loosey-goosey to be the foundation of the global economy. Matt Simmons is right on target with his call for the 13 Points of Light.
The 13 Points of Light I am promoting some new disclosure standards for oil and gas producers of any significant size called the 13 Points of Light.
What this entails is for all significant oil producers (actually oil and gas) to have to break out 13 data points for any producing field that accounts for 10% or more of total production.
The 13 pieces of data are five years history of actual production and the average number of producing wells by field (a total of ten pieces of data) plus three estimates of the reserves in the field. The updated estimate of the Original Oil in Place, the updated estimate of ultimate recoverable reserves and the updated cumulative production of the field.
These simple 13 points, which any serious oil producer has at their fingertip, can finally allow analysts to genuinely analyze the quality of the field and how far along the productive life an individual producer really is. While there are various other data items it would also be nice to know, these 13 simple points would go a long way to uncovering that we have no big supply concerns Or to expose how fragile the global supplies really are.
I am convinced that a big push by various “interested parties” can force this new disclosure standard for all publicly traded companies and then govt’s need to force the same standard on all national oil companies, including all OPEC producers.”
– Matt Simmons, President of Simmons and Co., April 15, 2004
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