Oil and Gas Trends

Upstream Industry Highlights

BP presses ahead with major discovery offshore Brazil’s Santos Basin: BP announced initial results from its largest oil & gas find in 25 years at the Bumerangue block. Early analysis suggests a “very large hydrocarbon column” with manageable CO₂ levels, and BP plans to advance development concepts with drilling activities expected to begin in early 2027. (Wall Street Journal)

Oil-field water-handling market to hit $156 billion by 2030, led by the Permian Basin: According to a report by Bluefield Research, the oil-field water-handling sector (transportation, treatment, disposal) is projected to average ~$26 billion/year through 2030, with the Permian region accounting for ~$102 billion of the total. (mrt)

Upstream job losses rising amid softer pricing & consolidation: In Texas alone, upstream oil & gas employment fell by nearly 3,000 jobs during June and July 2025 (~1.5% of workforce) as crude prices hovered near breakeven and consolidation continued. The decline signals potential headwinds for activity and workforce stability. (Houston Chronicle)

Efficiency Is the New Advantage

As year‐end approaches, E&P accounting teams are under increasing pressure to close faster, reconcile cleaner, and deliver more insight with fewer resources. Market volatility, investor scrutiny, and ongoing digital transformation have elevated financial accuracy from a back-office function to a strategic differentiator. This issue dives into three practical areas where upstream operators can gain real efficiency: year-end preparation, month-end acceleration, and JIB accuracy.

Year-End Accounting Tips for E&P Operators

A strong finish begins with early preparation. Year-end close doesn’t have to mean long nights and last-minute reconciliations. Leading operators are taking these proactive steps:

• Reconcile suspense and clearing accounts early to prevent unallocated balances.

• Audit AFEs and capital projects for cost overruns or incomplete approvals.

• Validate production-to-revenue alignment by comparing volumes, prices, and ownership decks.

• Clean up JIB receivables and payables to improve partner confidence before year-end distribution.

These habits reduce post-close adjustments and position your team for a smoother audit season. (highradius)

How to Cut Month-End Close Time in Half

The best E&P accounting teams treat the month-end close as a repeatable, measurable process. Not a monthly fire drill.

To shrink cycle times:

• Automate repetitive tasks like recurring accruals and inter-company entries.

• Standardize close checklists with defined ownership and due dates.

• Integrate field data and accounting systems to eliminate manual reconciliations.

• Adopt real-time dashboards that show accrual status and exception items mid-month.

With the right workflows, operators can achieve a five-day close. Freeing time for analysis, not data wrangling. (EAG) (pwc)

Common JIB Mistakes (and How to Fix Them)

Joint-interest billing continues to be a pain point for many upstream organizations, yet most errors stem from preventable process gaps:

• Out-of-date ownership decks cause cost misallocations.

• Timing mismatches between expense recognition and billing cycles create partner disputes.

• Manual data entry introduces coding or overhead errors.

To correct these issues, modernize by validating decks monthly, automating bill-run checks, and reconciling partner balances regularly. Accurate JIBs strengthen partner trust and accelerate cash recovery. (PetroLedger) (copas)

Why Process Optimization Matters Now

Operational efficiency isn’t just about speed, it’s about agility. In today’s leaner upstream landscape, every day shaved off the close and every error prevented translates into better cash-flow visibility and decision-making confidence. Companies that modernize their accounting processes gain real-time insights into production costs, AFE performance, and margin exposure, helping leadership respond quickly to commodity-price swings or investor inquiries.

Build Momentum Before Year-End

The final quarter offers a unique window to fine-tune accounting operations before the new fiscal year. By tightening close processes, eliminating JIB bottlenecks, and embracing automation, E&P organizations can enter 2026 with stronger data, cleaner books, and faster insights. Efficiency isn’t just a finance goal. It’s a competitive edge in a market where accuracy, transparency, and agility define success.