For more than 25 years, the SEC’s rules for measuring and reporting oil and natural gas reserves remained relatively unchanged, despite increased geological complexity, significant advances in technology and increased price volatility in global markets. As time progressed, these rules eventually made it more difficult for investors and analysts to assess and compare the oil and gas that companies held underground.
Today, however, a new set of reporting principles, adopted in late 2008, will impact the way oil and gas companies communicate reserves information to stakeholders. The SEC’s new rules give energy executives and directors the opportunity to more closely align reserves reporting with their overall business strategy and their competitive position in the marketplace. To better understand how these rules impact the financial accounting and disclosure requirements, as well as other implications of the rule changes, download a copy of Energy SEC Reserves Reporting - Leading the change.