Resource transparency and energy transition: The role of SEC oil and gas reserve reporting in future energy systems

  • Guoquan Fan

    Dagang Oilfield Branch of China National Petroleum Corporation, Tianjin 300280, China

  • Mengyue Guo orcid

    Dagang Oilfield Branch of China National Petroleum Corporation, Tianjin 300280, China

  • Yun Wang

    Dagang Oilfield Branch of China National Petroleum Corporation, Tianjin 300280, China

Article ID: 4190
Keywords: SEC reserve reporting, resource transparency, energy transition, stranded assets, climate-related financial disclosure

Abstract

The world energy paradigm shift is changing the manner in which oil and gas resources are rated, regulated, and reported. The review studies the purpose of the U.S. Securities and Exchange Commission (SEC) oil and gas reserve reporting as one of the main transparency tools of resources and evaluates its applicability in future energy systems. Conventionally, the SEC reserve reporting has minimized information asymmetry in the capital markets through standardization of disclosure of economically viable production of hydrocarbon reserves and therefore, facilitated the protection of investors, asset-pricing, and corporate responsibility. Nonetheless, the article states that the traditional reasoning behind reserve reporting is being more and more questioned by decarbonization, financial risk associated with climate, carbon limits, and shifting capital allocation trends. Even with reported reserves, technical, and commercial producibility may remain, but innovation does not entirely account for transition-related risk conditions like stranded asset risk, fossil entrapment, emissions exposure, and demand decline in low-carbon systems. With a combination of the views of reserve classification, securities regulation, energy governance, and transition finance, this review indicates that SEC reserve reporting is still needed but not sufficient as a standalone transparency measure. The article identifies the necessity to revise the reserve disclosure by incorporating more deeply into climate-related reporting, scenario-based analysis, and better addressing uncertainty. It comes to a conclusion that reserve reporting needs to be redesigned as a fossil asset-centric accounting system into one that is more dispositionally inclusive of transition to control resource value in the decarbonization of energy systems.

Published
2026-05-12
How to Cite
Fan, G., Guo, M., & Wang , Y. (2026). Resource transparency and energy transition: The role of SEC oil and gas reserve reporting in future energy systems. Energy Storage and Conversion, 4(2). https://doi.org/10.59400/esc4190

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