Business Automation

What is Joint Interest Billing (JIB) in oil and gas accounting?

bySusie Yuill

Joint Interest Billing, or JIB, is a form of accounting specific to the oil and gas industry. Because the industry can be high risk, high reward, it’s common for different parties to invest in a single drilling project. Shareholders within the joint venture have different responsibilities and privileges. A JIB statement divides the expenses and revenue from a drilling project among the partners, based on the agreement in place.

Operator and Non-Operators

There are two main types of players in this arrangement: the operator and the non-operator. These parties enter into a joint operating agreement that outlines the rights and responsibilities of each party. The operators usually have the largest investment in the venture and make the day-to-day decisions related to the site.

The operator performs the drilling of a site, receives the initial profits from the project and manages the upfront expenses. The revenues and expenses are recorded by the operator and then divided out to the non-operator partners in a JIB statement.

Operators process JIBs each month as part of their accounts payable workflow. They also must respond to compliance reviews performed by non-operators.

Non-operators are parties that have a vested interest in the well. A non-operator at one drilling site is often an operator at another site. Non-operators receive a percentage of the profit based on their share of the investment.

Challenges with JIB accounting

From the explanation above, you can tell that JIB is a complex process.

via GIPHY

It’s so specific and specialized, operators often have an accountant on staff that specializes in JIB accounting. JIB statements can be several pages long due to the complexity of these arrangements. If an operator must print and mail these JIB statements to all working interest partners, the print and mail costs will quickly add up. Also, there’s a chance these statements could be lost in the mail.

From Paper JIBs to Digital

Due to these administrative challenges, most operators and non-operators manage their JIB statements online using JIB management software. This allows both sides of the exchange to optimize the entire JIB workflow to be more efficient, easily scale operations and gain better visibility into cash flow.  EnergyLink, a cloud-based solution by Enverus, helps operators reduce support time by providing owners and partners secure and convenient online access to their ACH electronic deposit, change of address (COA) self-service and monthly oil and gas statements – including revenue check detail, 1099 tax documents and JIBs. With workflow automation, enhanced communication tools and rich reporting capabilities, EnergyLink is the industry standard for JIB exchange and automation.

Are you an operator or non-operator looking to optimize your JIB workflow? Join the rest of the industry in using EnergyLink for a more efficient and economical way to process JIBs.

Email us at [email protected] or call us at 1-800-242-4245 to learn how to get started.

Susie Yuill

Susie Yuill

Susie Yuill is Director of Product Marketing at Enverus. She specializes in bringing SaaS software products to market and creating and implementing high-value marketing programs to reach and convert target accounts. Throughout the years, she has led the marketing product launches for several SaaS products for various industries. Susie is a proud, fightin' Texas A&M Aggie and earned an MBA from Texas State University.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

CCUS-GettyImages-1056200534
Energy Analytics Energy Transition
ByAndrew Gillick

In case you missed it, Enverus virtually hosted EVOLVE, our flagship conference, May 16-17. The event included two full days of presentations, panels and keynotes, distilling the most relevant data and thoughts on the industry today.  Below Andrew Gillick, managing director...

blog-refinancing
Energy Analytics Other
ByShane Reddell

In the current landscape of heightened environmental and social consciousness, upstream oil and gas companies face significant challenges in achieving favorable refinancing for their existing credit facilities. These challenges are compounded by the recent volatility in the debt markets and...

unprecedented-wildfire-season-singes-alberta-oil-production
Energy Analytics Intelligence Publications
ByMaurice Smith

Wildfires that have already scorched more than double the average annual fire destruction across Alberta forced the shut-in of more than 300,000 boe/d while threatening future shuttering of output from the so-far largely unaffected oil sands region. Record temperatures saw...

ccus-risky-business-post
Energy Analytics Energy Transition
ByHeather Leahey

CO2 containment risk has become one of the most popular topics among our clients evaluating CCUS projects. Operators need to understand and evaluate subsurface features that could trigger CO2 migration and containment losses as well as introduce additional safety, reputational...

ev-parent-image
Energy Analytics Energy Transition
ByRyan Luther

Anyone who thinks spending time at a public charging station is a blocker to buying an electric vehicle (EV) might want to consider the numbers behind EV and internal combustion engine (ICE) vehicle refueling times. The answer is that it...

Enverus Blog - 6 tax preparation tips for mineral and royalty managers
Energy Analytics
BySilas Martin

Recent years have been a roller coaster for mineral buyers, from record low commodity prices to highs for oil and natural gas in the last year. Going forward, challenges and opportunities will be plentiful. We expect oil prices between $80...

wind-power-energy-woman-trader-stock
Power and Renewables
ByKenneth Curtis

It’s that time of year when generator and transmission outages are at their peak in PJM. The first half of April has not disappointed volatility-wise as the WHUB/NIHUB spread has set new 30-day highs largely driven by congestion. Figure 1:...

Enverus Blog - April's energy outlook: Analyst insights you can't miss
Analyst Takes Energy Analytics
ByChris Griggs

May marks a new month, and it’s essential to assess the energy landscape of April. Our Enverus Intelligence® | Research (EIR) team has scrutinized critical trends and advancements, delivering to you insightful analyst takes that can shape your business decisions....

ofs-banner
Energy Analytics
ByCayley Krynowsky

Inventory is king in 2023. Operators and investors alike are more concerned than ever about remaining inventory – who has it, where is it, and will it be economic? To answer these questions, most turn to the tried-and-true, but also...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Access Product Tour

Speak to an Expert

Book a Demo