The Material Issues Involved in the Discussion Surrounding the Virtues of theSPE/WPC Definition of Proved Oil and Gas Reserves vs. the CorrespondingDefinition Set Out by the United States Securities and Exchange Commission (SEC)

摘要

Among the more contentious issues discussed within the oilrn& gas industry recently are:rn?Are the United States Securities and ExchangernCommission (SEC) definitions of Proved oil and gasrnreserves obsolete, too narrow and/or unrealistic forrntoday's oilfield technology?rn?Are the SPE/WPC definitions of Proved oil and gasrnreserves much more realistic and responsive torntoday's comparable reporting needs?rn?Has the meaning of the word 'Proved' changed overrnthe last twenty-five years?rn?Has the meaning of the expression 'ReasonablernCertainty' changed over the last twenty-five years?rnThe contention here is that the answers to each of these fourrnquestions is 'No'. This paper advances the idea that there are nornmaterial differences between the Proved oil and gas definitionsrnpromulgated by the two organizations if the original commonrncornerstones are honored within the true spirit of the words engaged inrnthose definitions.rnThe allegation that the SEC definitions for Proved oil and gasrnare in some way out-of-date in terms of the application of modernrnoilfield technology is examined and found to be without legitimaternfoundation. The distinctive variation between the two organizations isrndiscussed; the SEC as a regulatory authority with responsibilities forrnensuring comparable reporting by listed corporations within itsrnjurisdiction versus the SPE as a Technical Society without suchrnresponsibilities or the structure for offering guidance regardingrndefinitional compliance.rnAs the 'interpretation drift' in the application of the SPE/WPCrnProved reserve definition continues unabated, the search for anrnInternational Standard by other organizations (particularly the UnitedrnNations) only further complicates the matter. The question is posed asrnto whether the lack of proactive contributions in this regard from thernSPE, as an organization, places the very integrity of the Society's broader reserve definitions at stake. The SPE membership arernreminded that very few years ago, the SPE/WPC/AAPG definitionsrnwere very credibly put forth for adoption as the essential InternationalrnPetroleum Industry Standard.