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Energy

Fitch Ratings Predicts Lower Oil Reserves Valuations

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By Douglas A. McIntyre Updated Published
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Low commodity prices are likely to have a "significantly negative impact" on 2008 proved oil & gas reserves, according to Fitch Ratings. Wonder how long it took the analysts to figure that out.

The SEC’s adoption of new rules governing theway companies value oil and gas reserves will work to the benefit ofenergy producers in 2009, but the changes came too late to help 2008’snumbers.

Fitch also noted that the downward revision to reserves valuations"will also communicate important information about an individualcompany’s relative asset quality." A ratings company reading the tealeaves again with help from the companies it rates. Sure makes me feelbetter about the quality of debt ratings.

Paul Ausick
January 13, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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