Enron-style accounting -- now it's OIL RESERVES

This story DID NOT appear in the US news (that is, not on Friday). I found it in the overseas news!

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Major oil stocks fall as Shell revises reserves
By Joseph A Giannone

NEW YORK, Jan 9 (Reuters) - Shares of major oil companies fell on Friday after Royal Dutch/Shell Group (LSE: SHEL.L - news - msgs) shocked investors by slashing its "proven" reserves 20 percent, raising concerns others may also have improperly booked reserves.

(See my website and sidebar for entire story link and related stories.)
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[aquart]

1. Someone please explain?

What does it mean if oil is listed as being in reserve and actually isn't there?

What are we looking at?

[nadinbrzezinski]

2. Peak Oil

we are running out of the stuff... and without it our modern economy will COLLAPSE

oh here is a link to a reputable place on this

http://peakoil.org/

There is more, just do a web search

This is why it is so important to go for alternate fuel sources

[Dogmudgeon]

4. Not running out ... BUT ...

We've reached the end of the easily-pumped oil. What is there is either too deep or too viscous to be pumped without considerable energy put to the task. So this raises the price of petrochemicals.

As for Natural Gas, we really are running low on it; and nitrogen fertilizer from petrochemicals, the guts of the Green Revolution, is also on a short leash these days.

Surf to www.DieOff.com for more details and links. But make sure you've had a good, stiff drink first.

--bkl

6. How do you justify this then?

The recent BUSH tax cut allows rich people to deduct low-miles-per-gallon SUVs, INCREASING demand for gas and oil.

In fact, according to my research, the "GDP growth" reported recently was mostly due to sales of large vehicles, as a result of the tax cut!

Check this out for yourself! Bush's TAX CUT LED TO 1,000 JOBS in December, but tons of SUV sales, when gas prices are at a 20 year high!

Dan

3. My understanding is...

As an oil company, you state your oil reserves (oil that can come out of the ground) so your company is rated properly, and so people can plan for the future, and so you can sell bonds (borrow money).

I think case, SHELL OIL apparently lied by 20 percent.

I think SHELL is one of the biggest companies in the world, if not THE biggest.

Dan

[Dogmudgeon]

7. The average over-estimate of oil reserves

I think it's been reliably estimated at about 35%; and that does not factor in the increased costs of taking it out of the ground.

Shell is the company that opened up the North Sea oil bed. They made some great discoveries and advances in oil-extraction technology, but that little 9.81 meters-per-second-squared gravity factor is hard to get around under any circumstance.

--bkl

[dawgman]

5. some good links here

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=1001716

[DemoTex]

8. Why on earth do you think we are in a war in Iraq? Why?

OIL

[NashVegas]

9. Dupe

This was posted in GD this morning. NY Times story.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=1003438

11. Okay, check out this

No jobs, but big profits for corporations.Especially, the bar on the right.

http://www.epinet.org/content.cfm/webfeatures_snapshots_archive_12032003

[NashVegas]

13. Aye

They're saving it up for the move to Mars.

[KittyWampus]

10. The Amount They Can Extract Is Proportional To Amount

held in reserve.

Please know that Middle Eastern countries have all exaggerated the amount of reserves they have. It is most profitable for them to do so.

Also, I'm on the record on several astrology threads as predicting that the US found out that Iraq has fewer reserves left then they had anticipated. (Just saying... I don't care if you laugh at me)

[cosmicaug]

15. O.K.

cryingshame wrote

Also, I'm on the record on several astrology threads as predicting that the US found out that Iraq has fewer reserves left then they had anticipated. (Just saying... I don't care if you laugh at me)

O.K., consider yourself laughed at :D . By the way, these astrologer types, how do they know what astrological sign to use for a given field?

[goforit]

12. Enron? Shell?........all in the family.

Oh well.

(inspired by 1776.)

[Judi Lynn]

14. Thanks for posting the article.

Definitely not common knowledge here, is it?

[Moderator]

16. LBN Rules

The rules for posting in the Latest Breaking News Forum require that a poster use the published title of a linked-to article as the subject line of their post.

In this case, the link to the article is unclear. Please feel free to repost this thread, with a more direct link.

Thanks!

DU Moderator