Oil & Gas
Lifting Costs — Operating Expense
Recording the day-to-day costs of extracting oil from a producing well (lease operating expenses).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Lease Operating Expense (LOE) | Expense (+) | 800,000.00 | - |
| Cash / Accounts Payable (Operating Contractors) | Asset/Liability (-) | - | 800,000.00 |
💡 Accountant's Note
Lifting costs (pumping, maintenance, chemicals, water disposal) are the direct costs of producing oil and are expensed as incurred. They are distinct from development costs which are capitalized. The lifting cost per barrel ($/bbl) is a key operational metric.
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