Dutch

The massive oil and gas reserve revisions announced in the past few months by Royal Dutch/Shell Group and El Paso Corp. during a period of high commodity prices casts an “ominous shadow” on bookings by other producers that use full-cost accounting, a Standard & Poor’s (S&P) analyst said in a report issued on Thursday.

Calgary-based Shell Canada Ltd., a unit of Royal Dutch/Shell Group, reported a record 73% earnings increase in the first three months of 2004 on high prices and a strong contribution from its Athabasca Oil Sands Project, which was in start-up mode a year ago.

Calgary-based Shell Canada Ltd., a unit of Royal Dutch/Shell Group, reported a record 73% earnings increase in the first three months of 2004 on high prices and a strong contribution from its Athabasca Oil Sands Project, which was in start-up mode a year ago.

The boards of Royal Dutch/Shell Group’s parent companies met Friday to consider if any further actions should be taken following the 20% reserves reduction taken in January. A report by the company’s audit committee apparently puts the blame for the oil and gas reserves revisions on former Chairman Sir Philip Watts and Walter van de Vijver, the former exploration and production (E&P) chief.

Royal Dutch/Shell Group’s former CEO of exploration and production (E&P) stated this week that he had uncovered the company’s reserves discrepancies after he took over the business unit and had repeatedly warned top management of the problems before they were publicly disclosed in January (see Daily GPI, Jan. 12).

The board members of Royal Dutch/Shell Group apparently are reviewing a report this week by the company’s audit committee that puts the blame for the oil and gas reserves revisions on former Chairman Sir Philip Watts and Walter van de Vijver, the former exploration and production chief.

The brouhaha that developed following the reserve revisions by El Paso Corp. and Royal Dutch/Shell Group has turned into a “long overdue” discussion about producers’ oil and natural gas reserves, the CEO of Anadarko Petroleum Corp. said last week.

A June 2000 internal presentation by Royal Dutch/Shell Group planners apparently warned about overly optimistic proven and probable oil and gas reserves, according to a report in Thursday’s Wall Street Journal.

A June 2000 internal presentation by Royal Dutch/Shell Group planners apparently warned about overly optimistic proven and probable oil and gas reserves, according to a report in Thursday’s Wall Street Journal.