kebu77

Drop in Oil and Gas Prices Masks Production Problems

"Around 61% of this downward revision was due to falling commodity prices; hence, companies attributed nearly 40% of their 2008 revisions to performance."

Some of these companies would have reported downward revisions even if the price had held steady from the end of 2007. The 40% in the quote above would be 100% without the oil price decline - - a result that would then be obvious for all to see.

Performance-based revisions will increase if we are on what some have called "the undulating plateau" that happens as we crest the peak of oil production.