POSTING BY AN OUTSPOKEN FORMER EMPLOYEE OF SHELL OIL USA
FYI Enron was populated by a host of former Shell USA managers who were let go by Shell in the early 1990’s as part of Shell USA’s reorganization and downsizing program (Shell USA had finally managed to manage the company into a serious financial problem with a host of bad decisions).
So, it comes as no surprise to anyone familiar with the two organizations that RD Shell had it own financial scandal a few years later. The reserves scandal at Shell was a long time in coming but the ‘problem’ was known about internally for many, many years. Shell USA knew it had a credibility issue with its reserve bookings in the mid-1980’s.
Senior level Shell management simply hid it for as long as they could. Nobody wanted to be the ‘Grinch that stole Christmas’, so the reserves fraud continued from one succession of senior management to another. Finally, the chickens came home to roost.
This issue does, of course, point to the fact that RD Shell has a serious ‘corporate culture’ problem, i.e., it is fundamentally corrupt. Management was and is not only lying to investors and securities regulators, they were and are lying to themselves. Maybe that is why RD Shell is no longer on the list of ‘most sustainable’ companies.