Ocena przydatności metody SMOG do wyceny wartości złóż węglowodorów w sprawozdaniach finansowych firm naftowych
Evaluation of the SMOG method applicability for hydrocarbon reserves valuation in financial statements of oil and gas companies

Summary/Abstract: The paper presented here relates to a notion of Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves (SMOG) to be reported by oil and gas companies. Entities listed on markets regulated by the U.S. Security Exchange Commission (SEC) are obliged to include into their financial statements a SMOG calculation as a part of the Supplementary Oil and Gas information. This section remains unaudited. The article presents evolution of prescribed methodo-logy. Further an analysis of SMOG’s usability from the standpoint of key stakeholders is performed. This is followed by a review of related scientific and business literature and supplemented by a com-parative statistical analysis of the SMOG’s impact on market valuation of selected four global oil companies. In conclusion a low utility of the SMOG information is identified, resulting from oversimplification of applied methodology and contrasted with a number of important challenges faced by those willing to apply it.

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