In this paper, we address the potential implications and trends in valuation of oil and gas reserves post COVID-19. As we discuss in this paper, the recent downward fluctuations in price of oil and gas would have a significant impact on the valuation of these natural reserves. Oil and gas companies are in the business of making money and generate profits, and with the COVID-19 low prices, it becomes economically unsustainable to produce at these levels. Given this and the future prospective for slower growth in both short and long term, many companies should consider retiring some of these resources as they fall out of the accounting ‘definition’ of an asset.
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Rossen Petkov
Lehman College, City University of New York
Dr. Rossen Petkov is an Associate Professor in Accounting at the Department of Economics and Business at Lehman College, City University of New York (CUNY). Dr. Petkov’s main research interests are in accounting for internally generated intangible assets, prehistoric...
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