LA Times: SEC Weighs Requiring Certified Reserves: ‘scandal at Shell oil’
‘overstatement of its proven reserves and “inappropriate” accounting in other business areas resulted in profits being inflated by $432 million.’
By Associated Press
Posted 21 July 04
WASHINGTON — Following scandal at Shell oil, federal regulators are considering requiring outside auditors to review and certify energy companies’ oil and gas reserves, documents show.
A memorandum from two officials of the Securities and Exchange Commission to its chairman, William Donaldson, indicates that the move being considered would mandate that outside auditors review and certify oil and gas reserves the way they do now for companies’ finances.
An embarrassing series of disclosures in recent weeks by the Royal/Dutch Shell Group cut the oil giant’s reported oil and natural gas reserves by nearly one-quarter and brought the departure of several top executives. The company said recently that overstatement of its proven reserves and “inappropriate” accounting in other business areas resulted in profits being inflated by $432 million.
The SEC has been investigating the Anglo-Dutch company’s accounting for its energy reserves.
The June 24 memo from Alan Beller, director of the SEC’s corporation finance division, and Donald Nicolaisen, the agency’s chief accountant, notes that oil and gas reserves are a critical indicator of energy companies’ financial condition.
“Significant misrepresentations of proved reserves could adversely impact investor confidence in the accuracy and reliability of the reserve data disclosed by industry participants,” it says.
The memo also says that SEC staff will consult with the independent board overseeing the accounting industry, created in response to the corporate scandals of two years ago, to determine whether new accounting rules for energy reserves are needed.
On the Net:
Securities and Exchange Commission: http://www.sec.gov
Royal/Dutch Shell Group: http://www.shell.com
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
