Other Form of Name
Smith, Clarence Grover, 1884-
Document Type
Book
Publication Date
1917
Abstract
Prior to the actual development of an oil property it is difficult to determine the quantity of oil under the property and the rate at which this oil can be brought to the surface factors that determine the ultimate value of the property. Consequently, there has been much confusion in devising accounting systems that, during the entire life of a property, will show costs and profits from which the producer can determine whether his property is being worked at a profit or otherwise. The Bureau of Mines publishes this report in recognition of a distinct need for a simple treatise on accounting methods adapted to the peculiarities of the petroleum industry. Probably many companies operating oil wells are not fully acquainted with details important to the welfare of their business, because their account books fail to furnish them with exact and adequate data. With the accountant rests the responsibility of providing the management with reports setting forth the details of the business expressed in fitting terms as well as in dollars and cents. These reports are a means whereby efficiency may be maintained, waste prevented, oil obtained and sold, and money suitably reinvested. They also enable a concern to study the progress of its business in order to conserve to the utmost the possible benefits from an exhaustible deposit of mineral wealth. When managements realize the extent of the waste at their properties more attention will be given to the character of the accountancy records. Herein are presented descriptions and discussions of balance sheets, profit-and-loss statements, and bookkeeping methods peculiarly adapted to the oil business. As far as possible, technical phrases have been omitted in order that those not familiar with accounting terms may be able to follow the subject matter. The systems of keeping books outlined in Chapter X have all been found practical.
Relational Format
book
Recommended Citation
Smith, Clarence Grover and United States. Bureau of Mines, "Cost accounting for oil producers" (1917). Federal Publications. 291.
https://egrove.olemiss.edu/acct_fed/291