Description: Shell has been given permission to begin test drilling offshore of Nova Scotia. Shell told the regulator that it would be able to have capping technology available in event of a blowout in 12 to 13 days, versus its previous statement that it would take 21 days to bring the technology to a well. This reduction in time frames seemed to be enough for the Canada-Nova Scotia Offshore Petroleum Board to grant Shell the drilling approvals it was seeking.
Date: October 20, 2015
1) What do you think of the time frames involved in order to bring capping technology to a blowout?
2) What are some of the accounting considerations involved around the disclosure of oil reserves?
3) If you were a CFO of a major oil company, what would be some of the challenges you might face in disclosure of environmental issues?