Government's method of calculating oil, gas reserves is outdated, study reveals.

Publication: The Dallas Morning News (Dallas, Texas) (via Knight-Ridder/Tribune Business News)

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COPYRIGHT 2005 The Dallas Morning News

Byline: Sudeep Reddy

Feb. 24--Technology and globalization may have transformed the energy industry.

But the government's approach to calculating oil and gas reserves is ineffective and threatens to mislead the public about the world's supplies, according to a major industry study released Wednesday.

The report, backed by oil companies and conducted by Cambridge Energy Research Associates, says the U.S. system is "in urgent need of modernization."

Calculating oil and gas reserves has taken on greater importance as the world confronts rising energy costs and increasing difficulty in securing new oil and gas supplies.

Reserves estimates are at the heart of investor confidence in a company's resources, guiding...

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