Oil and Gas Accounting


We have the oil and gas industry experience you are looking for.

Cornwell Jackson specializes in Oil and Gas and has over twenty years of experience in the oil and gas industry. Our expertise allows us to understand the needs of oil and gas companies and provide timely information to help your company succeed when facing complex business issues.

Our area of expertise includes operating companies, drilling partnerships, exploration and production companies, oil field service companies, individual with working interest investments, individuals with royalty interest investments, mineral interest owners, and surface interest owners.  We understand the different nuances of oil and gas accounting and tax laws and the impact they have for each of the above stakeholders.

Our tax advisory services include:

  • Tax planning to maximize deductions related to intangible drilling and development costs (“IDC”), statutory depletion, geological and geophysical expenses (“G&G costs”), and lease and well equipment.
  • Tax planning and compliance for clients with multi-state filing requirements particularly as they relate to withholding and differences in federal statutory depletion calculations.
  • Guidance on choice of entity decisions with concentration in complex joint venture, LLC, and partnership structures and the effect those decisions have on other areas of the tax code such as the passive activity loss rules.
  • Exit planning to minimize tax liability.
  • Domestic production activities deduction calculations (Section 199)
  • 1031 Exchange analysis and transactional structuring consultations designed to minimize the tax impact of a sale of oil and gas assets.

Benefits of Working with CJ

  • Provide insight and perspective to your complex business issues
  • Specialized Oil and Gas and accounting expertise, helping you overcome every unique challenge of your business
  • Use of resources from our dedicated practice group, which is available to answer questions quickly and efficiently
  • Our industry experts keep you informed on issues as they arise that may affect your business

Oil and Gas Knowledge Base Articles: 

Oil & Gas 101: Investing Basics

Oil and gas investments have unique aspects of finance and taxes that are not seen in any other industry. High oil inventories have driven commodity prices and oil investment prices down, and it may be time to consider adding oil investments to a portfolio. Different entity structures and the accounting methods used make it difficult for investors to get a side-by-side comparison of O&G developers. Investors need to understand the pros and cons of each investment type under consideration, including the impact of accounting methods used, the developer’s strategy with regard to reserves, and finally the potential tax benefits or impacts.

Oil & Gas Update: Tax Implications of Buying and Selling Mineral Rights

The oil and gas industry has experienced booms and busts of varying lengths since the dawn of mineral exploration. The current climate for O&G suggests continued consolidation, however forecasts by industry experts anticipate the boom may be back by 2018. For any owners or buyers of mineral interests, the market may be ripe for making deals now — with a careful eye toward the tax implications. No two deals are alike, and it’s important to learn the potential tax impact and the types of taxes you may be paying.

Recent Oil and Gas Blog Articles:

Types of Oil & Gas Investments

Oil and gas investments have unique aspects of finance and taxes that are not seen in any other industry. High oil inventories have driven commodity prices and oil investment prices down, and it may be time to consider adding oil investments to a portfolio. Different entity structures and the accounting methods used make it difficult … Continue reading Types of Oil & Gas Investments

A Look at Accounting Methods of Developers

When considering publicly traded O&G stocks or Master Limited Partnerships (MLPs), investors should spend some time with the audited financial statements.  Companies that are involved in exploration and development may either account for their oil and gas activities under the successful efforts method or the full cost method. This choice has a material impact … Continue reading A Look at Accounting Methods of Developers

Tax Benefits for Investing in Oil & Gas

O&G exploration is still highly speculative, even with the advanced technologies available today. The unique tax benefits to this industry — designed as incentives for O&G development — can include a large direct deduction of all costs associated with development in the year they occurred. No other industry allows that timing of cost recovery. … Continue reading Tax Benefits for Investing in Oil & Gas

Contact our Construction Specialist

Call us to arrange an appointment: 972-202-8000 or email us using the links below.

Scott Allen, Tax Partner

Scott specializes in providing a variety of services to privately-held middle market businesses, with a focus in the construction and oil and gas industries.

Client Testimonial

“They know our business. I trust them, I can sleep well at night knowing that from an accounting perspective we’re not going to have any problems. I honestly believe they are genuinely happy that we’re successful and they’re working to help make sure that happens.”
Jim Schwab, CrimStone Partners

View Our Oil and Gas Blog