Anglo-Dutch oil giant Shell is to cut its reserve figures for 2007
LONDON (AFP) — Anglo-Dutch oil giant Shell is to cut its reserve figures for 2007, taking about 1.3 billion barrels off its books or the equivalent of nearly one year’s production, The Observer said Sunday.
The weekly newspaper said the company would announce the writedown of at least 200 million barrels off the estimates for its operations in Nigeria while another 1.1 billion barrels would be lost from Russia.
The revision of its booked proven reserves will be outlined when Shell chief executive Jeroen van der Veer sets out the company’s annual strategy presentation on Monday, it added, without citing sources.
Van der Veer would also explain that production growth will be “zero or near zero” until 2010, the newspaper said.
Shell was hit with record fines and forced to pay compensation in 2004 after misstating its reserve figures for 2002 by 20 percent, prompting a share price slump, the departure of key executives and a company reorganisation.
The newspaper said they had been forced to act this time round because rebels had sabotaged facilities in Nigeria and its joint venture with the government had stalled for lack of investment and rising taxes.
Losses in Russia result from Shell’s sale of part of its stake in the Sakhalin 2 venture to the state-owned gas giant Gazprom. Further reserve cuts would come in production-sharing agreements in Asia and Africa, it added.
In all, the weekly said Shell’s reserve replacement ratio — the number of barrels produced compared with new barrels to replace them — is expected to fall to about 80 percent.
Copyright © 2008 AFP. All rights reserved.
http://afp.google.com/article/ALeqM5g0bC_KBGZh6BdoXJNeAYu3ZM98MQ
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
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.
Firstly, let me declare myself (again). I am a retired senior Shell petroleum engineer therefore no longer on payroll but also not in thrall of semi or uninformed media commentators who rejoice every time they read their “by line”. The accuracy or relevance of the report is of minor importance.
The arcane reporting rules of the SEC oblige Shell (and others) to report proved volumes in a particular manner. However, this figure does not have a one to one correspondence with how much more or less the company can produce. As I have written earlier on this site, companies plan for and ultimately produce from the reserve “expected”. This includes production from oil sands and other unconventional resource not recognised from the 1970’s mind set SEC rules.
The IOCs such as Shell are required now more than ever at $100 a barrel for their expertise, technology and freedom from misplaced nationalist agendas. Continually knocking Shell achieves nothing except for the prospect of becoming beholden to Venezuela, Russia, Bolivia, Sudan etc for our energy future.