Improvements Needed in the Department of Energy's Efforts To Develop a Financial Reporting System
EMD-78-95: Published: Jul 31, 1978. Publicly Released: Jul 31, 1978.
- Full Report:
The Energy Policy and Conservation Act requires the Department of Energy (DOE) to collect information from oil and gas producers and to submit quarterly reports to the President and the Congress. DOE is developing a comprehensive energy database, entitled the Financial Reporting System, which is to encompass the required data on exploration and production.
There were several concerns about the adequacy of DOE's efforts in developing the database. First, the needs and uses of the data in the proposed data collection form have not been documented. Although some suggestions and advice were obtained, this information did not determine the data in the proposed form. Second, DOE has not developed a data form for small producers who must report information. Third, DOE's plans for collecting information from small producers on a sample basis is inconsistent with the act's provisions which require that data be collected from all producers.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Secretary of Energy should document the needs and uses of the data in the proposed collection forms and ensure that the data relate directly to the reporting system's objectives. He should: (1) specifically plan and document the manner in which DOE will analyze the capital and revenue needs of the petroleum producing industry; (2) design a data collection form for small producers who should be given an opportunity to review and comment on the form; (3) determine whether or not sample basis reporting by small producers will provide adequate information for purposes of the act; and (4) seek the necessary legislative changes in the act's provisions.