afe definition oil and gas
Pandell AFE is the E&P industry standard solution for joint venture capital cost management. It’s executive dashboard, audit-controlled workflow, and ad hoc reporting capabilities, contribute to its rapid adoption by the upstream sector throughout the USA and Canada. Pandell AFE is the oil and gas industry standard solution for electronic AFE approval and tracking. Pandell AFE makes working in the field just as easy as being in the office. All AFE data is stored in a secure, central web location and you can upload, edit, and approve AFEs using your laptop, tablet, and phone. AFE Management in Oil and Gas – Effective management of AFEs in a dispersed environment. One of the consistent issues faced by operators in the Oil and Gas industry is how to manage AFEs. The AFE (Authorisation for Expenditure) is the mechanism used particularly in a joint venture environment to ensure good cost and budgetary control. The purpose of this booklet, which captures more than 1000. acronyms related to our Oil & Gas industry is, therefore, to. facilitate the life of all young engineers in their day-to-day. activities. I cannot claim to include all the possible acronyms. as I am sure there are many more which are not referred. here. The acronym JIB stands for joint interest billing, a form of accounting unique to the oil and gas industry. Due to the high costs and risks involved in an oil-drilling project, it is common for several parties to come together in a joint venture that designates separate responsibilities and privileges. In addition to accountants that specialize in JIB accounting, software programs are designed to accommodate the needs of the oil and gas industry. These programs allow for the tracking of the profits and expenses of a project over time. AFE has two possible meanings in accounting, depending on the context. Authorization for Expenditures. This type of AFE is a document that lays out proposed expenses for a particular project and authorizes an individual or group to spend a certain amount of money for that project. Any organization may use an AFE to allot money to projects or members for any purpose within that organization's guidelines. Setting and Managing Capital Budgets in 2015: Now’s the Time for AFE Process Optimization. Setting and Managing Capital Budgets in 2015: Now’s the Time for AFE Process Optimization. With the drop in oil prices, many of our oil and gas clients are understandably reexamining their capital budgets for 2015. While establishing the capital budget defines the plan for the year, individual drilling projects must still be budgeted, reviewed and approved internally throughout the year as the annual plan is executed. Because of the intricacies of most oil and gas contracts and the amount of effort that it takes to sort out billing and payment arrangements, it’s common for accountants to specialize in JIB accounting.
Pandell AFE is the oil and gas industry standard solution for electronic AFE approval and tracking.