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.
January 13, 2009