SOCIETY OF PETROLEUM EVALUATION ENGINEERS Revenue and Competitors

Recognizing that Petroleum Evaluation Engineering is a specialized field, the Society is dedicated to the promotion of professional growth of the membership and to the advancement of the profession of Petroleum Evaluation Engineering by demonstrating by example the highest standard of ethics, by promoting continuing education of our membership and by education of the public in the area of oil and gas reserve definitions, reserve evaluations, and fair market value. About the Society The professional activities of SPEE members are guided by by-laws that require the highest ethical standards and that provide for a committee to review grievances filed against members. Principles of acceptable evaluation engineering practice address the relationships of members with the public, with employers, with clients, with other members, and with SPEE. The standardization of oil and gas reserve definitions has been a principle goal of SPEE throughout its history. In 1987, SPEE, in cooperation with other industry groups, formulated and published definitions believed suitable for use throughout the oil and gas industry. These definitions were subsequently promulgated jointly by SPEE and by the Society of Petroleum Engineers (SPE). Comprehensive guidelines addressing the application of these definitions were then published by SPEE in December 1988 as Monograph I. Each year since 1982, SPEE has surveyed its members and also other experts to obtain data regarding certain evaluation parameters in current use throughout the oil and gas industry. A statistical analysis of the results of this survey is published and a copy is made available to non-members for a modest fee. This annual survey is considered to be a valuable contribution to the profession of petroleum evaluation engineering because it provides a comparison basis for the parameters being used by any individual evaluator. Typical parameters included in the survey are: 10 year forecast of domestic oil and gas prices; 10 year forecast of operating cost and drilling cost escalation rates; primary present worth factor utilized in evaluations; minimum expected rate of return for investments; and risk adjustment factors applied to specific reserve classifications and categories. The annual survey also includes a comparison of all previous surveys. SPEE assists in the continuing education of its member through periodic technical meetings held by each local Chapter, through the Annual Meeting, and also by promulgating reports generated by the efforts of special committees such as the most recent report regarding severance taxes, “Summary of Oil & Gas Production Taxes.” SPEE meetings provide an excellent forum for the exchange of technical and business information that can be specifically applied in the evaluation of oil and gas properties. Local chapters meet in Calgary, California, Central Texas, Dallas, Denver, Europe, Houston, Midland, Northern Rockies, Oklahoma City, and Tulsa, Our newest chapter, Asia Pacific, centered around Perth, Australia is currently in formation.