Petroleum Industry Overview Series - Alternative Issue Resolution Considerations & Industry Resources
LMSB-4-1208-056
Date: December 2008
"This document is not an official pronouncement of the law or the position of the Service and cannot be used, or cited, or relied upon as such."
X. Alternative Issue Resolution Considerations
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Cost Depletion |
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Delay Rentals |
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Geological and Geophysical Cost |
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Intercompany Pricing |
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Intercompany Shipping |
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Inventory Issues |
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Sourcing of interest under IRC § 864(e) |
XI. Industry Resources
A. Trade Associations / WEB Sites
The following Internet sites may be helpful in obtaining information regarding the Petroleum Industry:
American Petroleum Institute - This is the home page for the American Petroleum Institute (API). API is the major national trade association representing the entire petroleum industry: exploration and production, transportation, refining, and marketing. With headquarters in Washington, D.C., and petroleum councils in 33 states, it is a forum for all parts of the oil and natural gas industry to pursue priority public policy objectives and advance the interests of the industry.
Interstate Oil and Gas Compact Commission - The Interstate Oil and Gas Compact Commission is an organization of states which promotes conservation and efficient recovery of domestic oil and natural gas resources while protecting health, safety and the environment. The IOGCC web site provides articles on current events, links to state regulatory agencies, training information, and an index of publications and videos relevant to the petroleum industry
Natural Gas Supply Association. - The Natural Gas Supply Association represents U.S.-based producers and marketers of natural gas on issues that affect the natural gas industry, including the residential and industrial consumers who rely on the fuel for a myriad of purposes.
Texas Independent Producers and Royalty Owners Association - The Texas Independent Producers and Royalty Owners Association is committed to promoting the interests and welfare of independent oil and gas operators, working interest owners, royalty owners, and businesses which provide services for the energy industry. Specifically, TIPRO strives to provide its members with legislative and public representation, access to valuable information and opportunities to develop business relationships. The web site publishes TIPRO's current activities.
Offshore Technologies - This web site provides coverage of international and domestic offshore oil and gas projects, and links to companies, organizations, and conferences.
Oil.com Web Directory - This web site is a comprehensive news site for the oil and gas industry.
Other significant oil and gas industry web sites include the following:
PROFESSIONAL SOCIETIES
These web sites contain information about the purpose of the society, current events, and links to other areas.
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Name of Site |
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Federal Energy Bar Association |
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Geological Society of America |
INDUSTRY-RELATED PROJECTS AND SERVICES
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Name of Site |
Sites for INDUSTRY-RELATED PROJECTS AND SERVICES
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Name of Site |
B. IRS and Other Training Courses/Videotapes
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Name of Course |
Course Number |
Delivery Method |
Developer of Course and Procedures to Secure Material |
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Oil and Gas Taxation |
3203 |
Computer |
MicroMash – Contact Local Education Branch (Pre-requisite to take Oil and Gas Unit 2) |
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Oil and Gas Examinations Unit 2 |
3186 |
Classroom |
IRS – Contact Petroleum Industry Specialist Staff |
C. Trade Magazines and Newsletters
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Title |
Frequency of Publishing |
Summary of Purpose/Information Included/Availability |
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Oil &Gas Journal |
Weekly |
Petroleum news and technology on a weekly basis. A leading information source for the industry. Provides top quality articles and graphics on oil and gas industry concepts. |
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Oil & Gas Energy Quarterly |
Quarterly |
Formerly the O&G Tax Quarterly it is now broader in scope. It has a good quarterly review of significant tax cases and revenue rulings. It is academic in nature. |
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International Petroleum Encyclopedia |
Annual |
Annual publication with outstanding maps, production statistic and articles on trends. |
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Petroleum Intelligence Weekly |
Weekly |
A leading industry newsletter. |
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Petroleum Economist |
Monthly |
International market reports from an economist’s point of view are provided. Good quality overview of world oil and gas production figures is provided. |
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Platts Oilgram News |
Daily |
A leading daily newsletter for the industry. |
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Transfer Pricing |
Weekly |
A standard reference reports on transfer pricing. Oil and gas industry transactions are frequently reported. |
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Date of Latest Edition |
Title |
Summary of Contents |
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2008 |
Oil and Gas – Federal Income Taxation |
Annual publication of CCH. . It gives detailed rules of federal income taxation for oil and gas operations; primarily upstream operations. |
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1999 |
Income Taxation of Natural Resources |
Annual publication by KPMG accounting firm. It gives detailed rules of federal income taxation for natural resources. |
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1996 |
Petroleum Accounting Principles, Procedures & Issues (4th Edition) |
Publication is designed to provide accurate and authoritative information and explanation in regard to U.S. petroleum financial accounting principles and practices prior to publication. |
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1993 |
Oil and Gas Taxation in Nontechnical Language |
Explains the essence of oil and gas taxation without the legal jargon. It is for the use of a person that is knowledgeable about the oil and gas industry. |
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1991 |
The book provides an explanation of the role that oil played in many of the world's major conflicts over the past century. It also gives backgrounds and highlights of the key personalities who played a role in the history of oil. |
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1998 |
Titan: The Life of John D. Rockefeller, Sr. |
The book describes the life and times of John D. Rockefeller, history’s first recorded billionaire. Standard Oil--which he always referred to as the result of financial "cooperation," never as a "cartel" or a "monopoly"--controlled at its peak nearly 90 percent of the United States oil industry. |
E. Internal Revenue Manual Citations
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IRM Section |
Title |
Summary of Information Included |
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IRM 4.4.1 |
Oil and Gas Handbook |
The Oil and Gas Handbook has been prepared to assist examiners in the examination of income tax returns of taxpayers involved in the oil and gas industry. |
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4810, ch 16 |
Oil Pricing Reports |
Reports required for transfer pricing |
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42(15) 0 |
Del. Order 13 |
Delegation Order for Controlled issues and PIP functions |
F. AICPA Auditing Standards and Publications
The following “Statement of Financial Accounting Standards” (FAS) affect the financial accounting for the petroleum industry.
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FAS |
SUBJECT |
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No. 19 |
Financial Accounting And Reporting For Oil and Gas Producing Companies |
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No. 25 |
Suspension of Certain Accounting Requirements for Oil and Gas Producing Companies |
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No. 34 |
Capitalization of Interest Costs |
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No. 69 |
Disclosures About Oil and Gas Producing Activities |
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No. 95 |
Statement of Cash Flows |
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No. 109 |
Accounting For Income Taxes |
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No. 121 |
Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of |
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FASB Current Text, Sec. Oi5 |
Integration of currently effective accounting and reporting standards promulgated by the AICPA and the FASB. The Oi5 section is drawn from FAS 19, 25, 69, 95, 109, and 121. |
There are two audit technique guides that affect the petroleum industry.
- The first, Oil and Gas Industry, focuses on the exploration and production or "upstream" portion of the industry.
- The second, Retail Industry, specifically the section on Gasoline Service Stations, provides an overview of a portion of the downstream segment of the industry.
Chapters IX | Table of Contents
