This study was undertaken to assess the impact of information on regulatory accounting using the Ghanaian oil and gas industry regulator as a case study. It brings to bear the various concepts of regulatory accounting and information asymmetry and how they impact the role of a regulator in executing its mandate.
Table of Contents
1. INTRODUCTION
1.0 BACKGROUND OF THE STUDY
1.1 AIMS AND OBJECTIVES
1.2 RESEARCH QUESTIONS
1.3 JUSTIFICATION FOR THE STUDY
1.4 STRUCTURE OF THE STUDY
2. LITERATURE REVIEW AND THEORETICAL BACKGROUND
2.0 INTRODUCTION
2.1 PURPOSE OF REGULATION
2.2 IMPORTANCE OF INFORMATION IN THE REGULATORY PROCESS
2.3 REGULATORY ACCOUNTING
2.4 KEY ISSUES IN INFORMATION FOR REGULATORY PURPOSES
2.5 MEASURING THE EFFECTIVENESS OF REGULATORS AND REGULATORY INFORMATION
2.6 CONCLUSION
3. REGULATION IN THE OIL AND GAS INDUSTRY
3.0 INTRODUCTION
3.1 REGULATION IN THE UPSTREAM SECTOR
3.1.1 Delegating the Regulatory role
3.2 INFORMATION REQUIRED BY REGULATORS IN THE UPSTREAM SECTOR
3.2.1 Functions of the upstream regulator
3.2.2 Information required by the upstream regulators
3.3 MEASURING THE EFFECTIVENESS OF THE REGULATOR AND REGULATORY INFORMATION
3.3.1 Technical expertise
3.3.2 Regulatory Competence
3.3.3 Resources of the Regulator
3.4 CONCLUSION
4. RESEARCH METHODOLOGY AND METHODS
4.0 INTRODUCTION
4.1 RESEARCH PARADIGM
4.2 APPROACHES TO RESEARCH
4.2.1 Qualitative and Quantitative approaches to research
4.2.2 Inductive and Deductive approaches to theory
4.3 RESEARCH DESIGN
4.3.1 Methodological choices-mono or mixed?
4.3.2 Nature of the research
4.3.3 Research Strategies
4.3.4 Time horizon of Research
4.4 DATA COLLECTION AND ANALYSIS
4.4.1 Sample selection
4.4.2 Gathering data
4.4.3 Analysis of data
4.4.4 Accountability as the analytical framework for analysing research data
4.5 CONCLUSION
5. DATA PRESENTATION AND ANALYSIS
5.0 INTRODUCTION
5.1 DATA DESCRIPTION
5.2 DATA ANALYSIS
5.2.1 Accessing/Licensing
5.2.2 Exploration
5.2.3 Appraisal
5.2.4 Development
5.2.5 Production
5.2.6 Decommissioning
5.3 CONCLUSION
6. SUMMARY, FINDINGS, RECOMMENDATIONS AND CONCLUSIONS
6.1 SUMMARY
6.2 CONCLUSION
6.3 RESEARCH QUESTIONS: RESTATED AND ANSWERED
6.4 RECOMMENDATIONS
Research Goal and Thematic Focus
The primary aim of this dissertation is to critically evaluate whether the regulatory information currently gathered by the Ghanaian upstream regulator from oil and gas operators is sufficient and "fit for purpose" in supporting effective regulatory functions, such as tariff setting and performance monitoring.
- The role of information asymmetry between regulators and oil and gas operators.
- The effectiveness of regulatory accounting as a tool for information gathering.
- Application of an "accountability framework" to assess regulatory disclosure.
- Identifying gaps in data collection across various phases of the petroleum life cycle (Exploration, Appraisal, Development, Production, Decommissioning).
- Assessment of regulatory mandates and the influence of technical expertise and resources on regulatory success.
Excerpt from the Book
3.1 REGULATION IN THE UPSTREAM SECTOR
The oil and gas industry is made up of the upstream, midstream and downstream oil and gas sectors. In the upstream sector, the exploratory and production activities are performed by the IOCs but these activities should be in compliance with the national policies of the countries in which they operate. Oil producing governments, as owners of natural resource would want to make the most benefit by making policies that seek to maximize the public interest. Oil and gas industries are uniquely characterized by high levels of capital investments and numerous operators that specialize in a wide range of technical expertise. Operators in this regard comprise of IOCs, service companies, drilling contractors and other specialized participants in the oil and gas industry. They undoubtedly would want to recover their cost and maximize profits due to the level of risk and huge capital nature of the industry. This results in conflicts of objectives between the government and the companies operating in the oil and gas sector.
The regulatory concept and framework comes into play when government policies need to be complied with and the government must be made aware of the activities of the operators. Paolo de Sa (2007) in Hunter (2014) noted that policies related to the development of natural resources are mainly to balance the interest of the government who is the owner of the resource with that of the operators in the light of interaction of factors such as the country’s resource potential, political stability, current infrastructure among others. Regulatory agencies are therefore established to ensure compliance with these policies and also reduce the information asymmetry between the government and the operators are reduced. The regulators are again required to issue licences to prospective operators in the industry and monitor their activities in compliance with the policies (AER 2014).
Chapter Summaries
CHAPTER ONE: Provides the background of the study and identifies the challenges faced by upstream regulators in developing countries while outlining the study's aim and research objectives.
CHAPTER TWO: Reviews literature on the purpose of regulation, emphasizing the necessity of information flow to reduce asymmetry between the state and operators.
CHAPTER THREE: Examines regulatory frameworks specifically within the oil and gas industry, categorizing the functions of regulators across different stages of the petroleum life cycle.
CHAPTER FOUR: Details the research methodology, highlighting the selection of an interpretivist paradigm and a qualitative case study strategy to analyze regulatory processes.
CHAPTER 5: Presents the gathered data and conducts an extensive analysis using the accountability framework to evaluate how information requirements align with the needs of stakeholders.
CHAPTER SIX: Summarizes the key findings, restates the research questions, and provides recommendations for strengthening the regulatory information gathering process.
Keywords
operators, regulatory information, Ghanaian upstream regulator, disclosure, effectiveness, regulatory accounting, accountability framework, petroleum life cycle, information asymmetry, compliance, tariff setting, upstream sector, stakeholder needs, oil and gas, case study.
Frequently Asked Questions
What is the core focus of this dissertation?
The work examines whether the data requirements set by the Ghanaian Petroleum Commission are effective in ensuring that operators remain accountable and that the regulator can carry out its oversight duties properly.
What are the primary themes discussed?
Key themes include information asymmetry, the challenges of regulatory accounting in developing economies, the necessity of stakeholder disclosure, and the balance between operator profits and public interest.
What is the central research question?
The main question is whether the information currently demanded by the Ghanaian upstream regulator is "fit for purpose" in enabling the regulator to effectively manage performance and set tariffs.
What methodology does the author employ?
The author uses a qualitative case study approach, incorporating content analysis and pattern matching of regulatory documents and templates to assess compliance with the accountability framework.
What does the main body of the work cover?
The main body focuses on literature reviews regarding regulatory theory, the specific regulatory landscape of the oil and gas upstream sector, and a detailed phase-by-phase analysis of data collection requirements.
Which keywords define this research?
The study is best characterized by terms such as regulatory accounting, upstream sector, Ghanaian regulator, stakeholder disclosure, and the accountability framework.
How does the author define the "accountability framework" in this context?
The framework interprets the relationship between the government (principal) and the oil companies (agents), where operators must provide specific, reliable, and timely information to justify their activities and ensure legislative compliance.
What practical recommendation does the author give to the regulator?
The author suggests implementing standardized reporting templates and strict time schedules for data submission to ensure that reports are comparable, timely, and truly useful for informed decision-making.
Does the regulator meet the needs of all stakeholders?
The research concludes that while the needs of core government agencies (like the Ministry of Energy) are generally met, the information needs of secondary stakeholders, such as local indigenous communities, are often overlooked or not prioritized in current reporting requirements.
- Citation du texte
- Akosua Berkoh (Auteur), 2014, Regulatory Accounting. The Ghanaian Perspective, Munich, GRIN Verlag, https://www.grin.com/document/1504512
