Reserve Changes

In 2008, the Securities and Exchange Commission (SEC) revised regulations and definitions of what can be considered proven reserves. This is a very significant and long-awaited win for the industry. The SEC finally recognized that technological changes in the industry need to be acknowledged and original standards by which proven reserves were measured are indeed antiquated. Previously, definitions of crude reserves were established in the 1930s. Oil and gas technology has come a long way, making existing reserve definitions dated. While all producers who sell securities in the United States abide by the SEC definition of proven reserves and regulations for its disclosure, the change in the definition to a more liberal definition ...

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