Rapid Compliance: Meeting the Demands

Concluding its series on Technology and Leadership, World EnergyTelevision examines the demands compliance puts on the industry. The show notes that the auditing and reporting of reserves and production, if not accurate and timely, can lead to big trouble. Panels of industry experts, including CEOs themselves, are brought in to share their views on the impact compliance issues have on the energy industry.

In the aftermath of Enron, the Sarbanes-Oxley Act of 2002 was “slapped together” to respond to a tragedy and, according to Matt Simmons of Simmons & Company International, “was the worst piece of legislation that we’ve probably ever had.” Roger Smith hosts as Matt Simmons, John Gibson of Paradigm, David Johnson of Protiviti, and Lane Sloan of the Greater Houston Energy Collaborative, describe the problems of compliance and examine potential solutions including information technology, reserve auditing, high-integrity management and transparency.

While guest agree that compliance standards hit hard after Enron, each presents a different view of the effects on image, efficiency and the market’s response to steps taken by companies to comply more effectively. Their candid exchange provides valuable insight to practical business challenges.