posted on Apr, 19 2004 @ 01:19 PM
Royal Dutch/Shell has cut their petroleum reserve estimates for the third time this year. This cut brings the total estimated reserve reduction to
4.35 billion barrels. Along with the reserve cuts, Judy Boynton, Shell's finance director, stepped aside in the third senior officer cut this
LONDON, April 19 (UPI) -- Royal Dutch/Shell said Monday in London it was restating the firm's oil reserves for the third time this year, the
Times of London reported.
The latest restatement means the company has sliced 4.35 billion barrels of oil from its original 2002 estimate, with a further 500 million barrels of
oil downgraded for 2003.
22% of Shell's estimated reserves have been slashed off. They never existed. The shareholders won't suffer too much of a shock; however, since the
company was in the middle of a buyback that it is halting. These events could cause the SEC to look into the petroleum industry as a whole. How
accurate are the reserve estimates from the other publicly traded oil companies?
In another major loss for the company, Standard & Poor has dropped their AAA rating of Shell to a AA+, which could slip as far as AA-. AAA is the
highest rating for a corporation, and once a company falls from this rating it most likely will never get it back.
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[Edited on 19-4-2004 by dbates]