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Posts on ‘February 5th, 2013’

Shell slight of hand with reserve estimates

Screen Shot 2013-02-05 at 18.26.22By a former employee of Shell Oil Co (Name and contact details supplied to John Donovan)

Back in the 1980’s Shell (and other major oil companies) were having problems with one of the major vendors that provided borehole wireline logging services. There were three of these companies at the time, but we need not mention names. It is from the data gathered through these wireline services that reserve estimates are calculated on new discoveries, and often times on infill wells in existing oil/gas fields.

The services (data) supplied by one of these companies was notoriously suspect and Shell’s engineers routinely complained bitterly about the quality of the data this company provided. Shell engineering staff constantly bickered with technically ignorant middle level managers about using this vendor. Shell’s R&D lab eventually got involved in the matter and discovered very serious design problems with some of the devices built and used by this company. There were also serious operational QC problems in the field. As a result of these issues the laboratory refused to recommend or give its stamp of approval for the services offered by this particular vendor. Shell labs cannot tell the operating units how to run their business, but by refusing to recommend/approve the services of a contractor the operating units assume liabilities if ‘problems arise’. read more and its sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

9/11 Terror Attack and the Shell Reserves Scandal

By John Donovan

On Friday we published an article revealing Shell internal email correspondence, which provided proof that three weeks after the 9/11 terrorist attack on the USA, Shell executives were considering how Shell could exploit the horrific event for commercial reasons.

As can be seen from the correspondence, the objective was to “buy us a bit of time” in dealing with “production growth” … and “reserves replacement…” Both are key factors in assessing the value of an oil company. Shell was increasingly vulnerable to criticism on both issues.
read more and its sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.
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