IRS Logo
Print - Click this link to Print this page

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

 

Cost Depletion
Delay Rentals
Geological and Geophysical Cost
Intercompany Pricing
Intercompany Shipping
Inventory Issues
Source 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.

 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.

 

Name of Site
American Association of Professional Landmen (AAPL)
American Institute of Chemical Engineers
Association of American State Geologists
Federal Energy Bar Association
Geological Society of America
International Association of Drilling Contractors (IADC)
Mineral Information Institute
Organization of Petroleum Exporting Countries
Orleans Geological Society
Permian Basin Geophysical Society
Permian Basin Landmen's Association
Rocky Mountain Mineral Law Foundation
Society of Exploration Geophysicists (SEG)
Society of Independent Professional Earth Scientists
Society of Petroleum Engineers (SPE)
Society of Professional Well Log Analysts
Society of Women Engineers
South Texas Geological Society
Texas Association of Professional Geoscientists
West Texas Geological Society

INDUSTRY-RELATED PROJECTS AND SERVICES

 

Name of Site

Alaska Oil and Gas Association
American Gas Association (AGA)
American Geological Institute (AGI)
American Petroleum Institute (API)
Council of Petroleum Accountants Societies
California Independent Petroleum Association (CIPA)
Colorado Oil and Gas Association
Gas Research Institute (GRI)
Independent Petroleum Association of America (IPAA)
Independent Oil and Gas Association of West Virginia
Institute of Gas Technology
Louisiana Independent Oil and Gas Assn (LIOGA)
Louisiana Mid-Continent Oil and Gas Association
Michigan Oil and Gas Association
Mineral Rights
National Assn of Energy Service Co.s (NAESCO)
National Association of Royalty Owners (NARO)
Natural Gas Supply Association (NGSA)
National Petroleum Council (NPC)
New Mexico Oil & Gas Association
North Texas Oil and Gas Association
Ohio Oil and Gas Association
Oklahoma Independent Petroleum Association (OIPA)
Oklahoma Mid-Continent Oil and Gas Association
Panhandle Producers & Royalty Owners Association
Petroleum Technology Transfer Council (PTTC)
Southwest Kansas Royalty Owners Association
Texas Ind. Producers & Royalty Owners Assn (TIPRO)
West Central Texas Oil & Gas Association
Interstate Energy Board
Western States Petroleum Association (WSPA)
Wyoming Independent Petroleum Association

Sites for INDUSTRY-RELATED PROJECTS AND SERVICES

 

Name of Site

Baker Hughes Rig Counts
Energy Connection
Gas Connection
Harts E&P net
Hydrocarbon Online
International Centre for Gas Technology Information
Offshore Technology
Oil.Com web directory for oil and gas industries
Oil Industry News Service
Oil-N-Gas.com educational forum
Oil OnLine
PetroChem.Net

B. IRS and Other Training Courses/Videotapes

 

Name of Course

Course Number

Delivery Method

Developer of Course and Procedures to Secure Material

Oil and Gas Taxation 3203 Computer MicroMash – Contact Local Education Branch  (Pre-requisite to take Oil and Gas Unit 2)
Oil and Gas Examinations Unit 2 3186 Classroom IRS – Contact Petroleum Industry Specialist Staff

C. Trade Magazines and Newsletters

 

Title

Frequency of Publishing

Summary of Purpose/Information Included/Availability

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.
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.
International Petroleum Encyclopedia Annual Annual publication with outstanding maps, production statistic and articles on trends.
Petroleum Intelligence Weekly Weekly A leading industry newsletter.
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.
Platts Oilgram News Daily A leading daily newsletter for the industry.
Transfer Pricing Weekly A standard reference reports on transfer pricing. Oil and gas industry transactions are frequently reported.

D. Industry Books

 

Date of Latest Edition

Title

Summary of Contents

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.
1999 Income Taxation of Natural Resources Annual publication by KPMG accounting firm. It gives detailed rules of federal income taxation for natural resources.
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.
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.
1991 The Prize: The Epic Quest for Oil, Money, and Power 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.
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

 

IRM Section

Title

Summary of Information Included

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.
4810, ch 16 Oil Pricing Reports Reports required for transfer pricing
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.

 

FAS

SUBJECT

No. 19 Financial Accounting And Reporting For Oil and Gas Producing Companies
No. 25 Suspension of Certain Accounting Requirements for Oil and Gas Producing Companies
No. 34 Capitalization of Interest Costs
No. 69 Disclosures About Oil and Gas Producing Activities
No. 95 Statement of Cash Flows
No. 109 Accounting For Income Taxes
No. 121 Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of
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.

G. Audit Techniques Guides

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

Page Last Reviewed or Updated: 05-Mar-2014