Let me tell you a story (with the assistance of ChatGBT5)—about barrels that weren’t and a blue-chip oil giant that treated “truth” like a rounding error.
In January 2004, Shell detonated its own credibility by admitting it had been wildly overstating what matters most in the oil game: proved reserves. How wildly? It began with a 3.9 billion-barrel “recategorisation” on 9 January 2004—about 20% of previously claimed reserves—and kept spiraling across multiple follow-ups until 4.47 billion barrels of oil equivalent (boe) (≈23%) had been pushed out of the “proved” column by May 24, 2004.
The U.S. SEC later said Shell also overstated its standardized future cash flows by about $6.6 billion and juiced a key KPI—its reserves replacement ratio—from a real 80% to an advertised 100% for 1998–2002.
Posted by John Donovan: 28 May 2024
Posted 24 May 2023 by John Donovan
CITY
ISS advises Shell shareholders to vote against climate activist resolution seeking faster emissions cuts
OIL
Bloomberg
