What are the two methods of accounting for oil and gas activities? Provide a description of accounting for exploration costs and justification for each?

V The successful efforts method capitalizes only those costs associated with productive oil and gas deposits and expenses th costs of all non-productive wells. The full cost method capitalizes only those costs associated with productive oil and gas deposits and expenses the costs of all non-productive wells. The successful efforts method capitalizes all costs associated with producing and non-producing oil and gas deposits. The successful efforts method is based on the theory that failures are needed in order to discover successful oil and gas deposits. The successful efforts method is based on the theory that non-productive wells do not produce oil and gas, have no future benefit and do not meet the definition of an asset. The full cost method is based on the theory that failures are needed in order to discover successful oil and gas deposits. The full cost method is based on the theory that non-productive wells do not produce oil and gas, have no future benefit and V do not meet the definition of an asset. The full cost method capitalizes all costs associated with producing and non-producing oil and gas deposits