The Impact of SOx Compliance on Hydrocarbon Accounting

摘要

In common with all such industry-wide changes, the signing into law of the Sarbanes-Oxley act of 2002 represents both a threat and an opportunity. The full ramifications of this change remain unclear: four years after the act, industry is still in the process of tuning its response. What is already apparent is that SOx has precipitated two specific opportunities in the area of Hydrocarbon Accounting: the first is the chance to raise the profile and understanding of this important link in the value chain, and the second is a driver to further embed good practice in our business. Managed correctly, the act should not drive any unnecessary change in Hydrocarbon Accounting. An important component of managing the impact of Sarbanes-Oxley will be spreading an understanding of the aims of the act. Without this, the proliferation of rules and the accompanying discussions will destroy rather than create value. In any case, rules by themselves cannot guarantee good behaviour. One final consideration is that significant debate persists as to whether SOx was an appropriate or an entirely effective piece of legislation. It is not impossible that some of its more controversial components will be subject to review by Congress in the foreseeable future.