Shell cuts oil reserve figures for second time

[arcos]

Shell cuts oil reserve figures for second time

Royal Dutch/Shell on Thursday said "disappointing and embarrassing" mistakes would force it to cut its reserves for the second time since January and delay its annual report and shareholder meetings by two months.

The surprise announcement came only a day before Shell had been due to file details of its 2003 reserves with the US Securities and Exchange Commission - one of five authorities in the US and Europe investigating the group.

The Anglo-Dutch company, which two weeks ago forced the resignation of Sir Philip Watts as chairman, admitted it was now vital to restore "confidence and credibility in reserves reporting practices". But one analyst called the latest cut "staggering".

<snip>

The latest miscalculation was uncovered by Ryder Scott, outside auditors hired by Shell two weeks ago. Ryder Scott found Shell had used technology, such as seismic 3-D mapping, which was insufficient under SEC rules to determine the volume of its reserves, in particular at Orman Lange, its Norwegian gas field.

<snip>

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079419747350&p=1012571727088

[acmavm]

1. Now it's obvious why we had to go after the oil fields. The west is in BIG

trouble because the truth is, we don't have as much oil as the oil companies would like us to believe. Therefore, there is a tremendous need to find and control the countries that do have oil. Hells bells, bush* comes from an oil family who just happens to have family members and friends who come from armaments families. This is not a happy coincidence folks. This is planned, but the plan is unraveling and the rest of the people who inhabit this earth are not happy about what's going on.

What ever happened to the idiot-in-chief's campaign promises of exploration and research into new energy sources? The same thing that happened to all of his big deal promises, once he got into office he told everyone to f*** off, he is going to protect his family and his friends and the rest of the planet can go to hell in a big atomic rapture.

[54anickel]

4. Why do I suddenly feel suspicious of Kerry's sudden rise and

cakewalk to become the Dem nominee?

Between this story, his implying Spain is giving into terrorist by their decision on Iraq, the story I just posted on the war to save the dollar I am not getting warm fuzzies. I'll still vote for him, but I'm suspicious and will be holding my nose.

[Serendipity36]

9. You ain't seen nothing yet.

I just heard about a guy by the name of Scott Camil who organized a plot to assassinate 7 sitting pro-war senators in Nov. of 1971 in a Kansas VVAW meeting. Apparently Camil is working on Kerry's campaign in Florida. This plot was exposed in Kerry's book "tour of duty".

If this is true Kerry is finished

[54anickel]

12. I'm not THAT suspicious. Good grief.

[hang a left]

21. Boy and I thought that I foiled alot.

You are trippin' dude.

[tlcandie]

11. 54... could you explain a bit .. please? I think I've missed something

somewhere because I am clueless about this Kerry thing and your suspicions, etc.

I know proudliberal or liberalandproud, can't recall exact name, was suspicious earlier and we got off into Soros.

Or give me something from which I can read myself...would greatly appreciate it and might check out that book; however, just spent $200 on books earlier today! :/ All regarding politics and what is happening now regarding this cabal, etc.


Thanks! :hi:

[54anickel]

15. Hi tlcandie. Not sure what book you're speaking of.

As far as my suspicions, I don't know it's been a gut feeling. To be honest, when I posted that, I was hoping someone would be able to quell my suspicions.

It's in response to acmavm's post about the real need to find and control the countries that do have oil and Shrub's selection not being a coincidence. Part of the plan, but the plan's unraveling. I am afraid the "suits" wanted a Dem that would play ball with them in case Shrub looses.

Kerry's statements regarding Spain reflect Shrubs spin, that they are caving in to terrorism, which we know isn't true. His distance on the Haiti thing, his almost knee-jerk reaction to Mahathir's "endorsement" all in all, not the diplomat I hoped he'd be. Then I posted another story regarding the US dollar and oil which makes me think he's a good fit.

Maybe I'm just having a bad night.

on edit, hey I posted a link to that story on the dollar in post 10. Forgot about that already.

[tlcandie]

17. Thanks .. you always come through ...!!!

The book was in reference to someone else's post! Well, someone earlier today had the same suspicion and THIS is exactly why a lot of us said that voting for the same old same old won't cut it! We need new blood to make REAL changes!

I do believe you are correct and that is very, very sad. The world needs more from us humans than half-baked attempts at bringing light to the darkness that is engulfing us.

Thanks again! :hugs:

[54anickel]

18. Thank you! I think I needed a hug tonight. n/t

[tlcandie]

20. 54.. I always read the Stock Market daily and so does my husband.

I learn so much, I just do not feel confident enough to contribute! Each of you there are such sweethearts for helping all of us to understand what is happening economically to our futures!

[Robbien]

22. Hugs from me also

Sorry I couldn't relieve your anxiety.

I have been meaning to mention that seeing your screen name always makes me smile as it brings to mind images of penny candy. One for a penny, five for a nickel.

[54anickel]

25. Thanks to you both, Robbien and Tlcandie. Tl - thanks for the kind

words on the SMW, it's always nice to know it's appreciated. :hi:

[Robbien]

13. When Kerry criticized Bush

for not making the National Endowment for Democracy's budget big enough, I also knew we had a candidate here who is not who we need. My optimism faded right after the Iowa caucuses. I'll vote for him, just in case I am wrong, but as time goes on the picture is getting darker.

[54anickel]

16. Yeah, that was another one of those hmmmm stories. Thanks Robbien, I was

sort of hoping I was off base and someone would give me a bit of hope to counter these feeling. Like I said, I'll vote for him, but it's not going to be with lots of conviction and pride.

[Rebellious Republican]

2. Heres a little kick back to the top N/T

:kick:

[Athame]

3. The Party's Over

Oil, War, and the Fate of Industrial Societies by Richard Heinberg.

I am half way through this very readable book for non-scientists like me. I have read all of the links I could find here on DU and elsewhere, but wanted a book I could pass around to friends and family. Heinberg lays it out in digestible form, including the arguments against the "Cassandras." It contains an excellent discussion of this issue of revised estimates of recoverable oil and energy liquids, noting especially that the incentives to inflate the reserve estimates are based on economics, not on reality.

[Minstrel Boy]

19. great book

I read it last summer. Doesn't sensationalize the subject, yet makes a strong case that our civilization is confronting an unprecedented crisis. Peak oil makes the best sense of the apparent madness of Bush foreign policy.

[pinto]

5. oil is the "lingua franca" of the modern world, it is of itself a currency

and a tool. what we here in the US or the EU or Asia pay for gas day to day, is secondary to the use of oil as money and ultimately as political power.

[Serendipity36]

7. Currency?

LOL!!! It's a commodity.

[54anickel]

10. A very important tool for power. That's why the big deal about oil

for Euros. Check this article out -

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x431383#top

[Serendipity36]

6. Hmmm...

I suppose it's clear that we need to drill out ANWR. We need the oil for our children's future

[htuttle]

8. ANWR would supply us for about 5 days...

...and most of it would probably get sold to Japan, anyhow.

[Robbien]

14. I suppose you did not see the study that came out today

Study: ANWR oil would have little impact. Basically it says that at today's import levels, ANWR would only reduce imports by 4%.
And we wouldn't get our hands on any of it for ten years after the initial start date.

http://msnbc.msn.com/id/4542853/

[hang a left]

23. Very interesting story about Saudi oil reserves here

What a coincidence.

A Tale of Two Planets

A Report on the Conference
“Future of Global Oil Supply: Saudi Arabia"
Held at CSIS, Washington DC, February 24th 2004

by Julian Darley

[e-mail]

http://fromthewilderness.com/free/ww3/031704_two_planets.html



© Copyright 2004, From The Wilderness Publications, www.copvcia.com . All Rights Reserved. May be reprinted, distributed or posted on an Internet web site for non-profit purposes only.

March 17, 2004 1800 PST ( FTW ) -- The new millennium has not exactly been one of ‘irrational exuberance' for many industries, and particularly not for the oil industry, despite high oil prices. Major oil discoveries have declined every year so that 2003 saw no new field over 500 million barrels, and in 2001 and 2002 the top ten non-state oil companies spent more on exploration than they discovered in value, a new and alarming record. It is well over twenty years since more oil was found than consumed in a year. From the outset of 2004, large reserve write-downs, starting with Shell, and including El Paso and BP, have shaken the confidence of the financial community, set in motion an official SEC enquiry, and may yet be just the tip of the iceberg.

Comforting then to know that the Middle East, producer of last resort and future saviour of the world oil system, still has nearly 700 billion barrels of reserves, and is publicly confident that it can deliver the required doubling of output to 40 million barrels a day by 2025. Even more reassuring, Saudi Arabia says it can happily deliver 10 million barrels a day for at least the next fifty years, possibly even rising to 15 million barrels a day – and still for fifty years. This output can be guaranteed because Saudi ‘oil in place' will rise to 900 billion barrels by 2025, while new technology will help existing recovery and lead to many new discoveries. This was the message from Saudi Aramco, delivered on February 24 th, at CSIS (Center for Strategic and International Studies), a well-known think-tank in Washington DC, to an audience of diplomats, CIA, EIA (Energy Administration Agency, part of the US Department of Energy), media of record, and many energy companies and analysts of every stripe.

The trouble is that the Saudi Aramco presentations of Mahmoud Abdul-Baqi, Vice President of Exploration, and Nansen Saleri, Manager of Reservoir Management, seemed to be describing not just another country, but another planet when compared with what Matt Simmons, President of Simmons and Co (the world's largest private energy investment banker) had to say. Industry observers noted that Aramco had never before said so much about their reserves and how they hold production steady in their ageing oil fields, but much of the Aramco presentation concentrated on the benefits of new technology, especially in their medium-sized fields, and the possibilities of future discoveries, without noting that well productivity had fallen by more than half since the early 1970s. More than half of Saudi Arabia's oil comes from one giant field, Ghawar, the largest ever discovered, and the health of this field is now in serious doubt, after decades of water injection to maintain pressure.

Simmons' case rests on the painstaking analysis of two hundred SPE (Society of Petroleum Engineers) reports written over four decades by Saudi petroleum reservoir engineers, as well as a fact-finding mission in 2003, and ten years of other detailed studies of oil and gas depletion. He has been publicly hinting for more than a year that assumptions about Saudi Arabia's seemingly limitless capacity may be misplaced, but now, ahead of the publication of his forthcoming book on Saudi oil, the hints have been replaced by copious data and a dire warning.

Snip>

[ze_dscherman]

24. Shell tried to protect relations with Nigerian government

This article quotes a NYT story


WASHINGTON - The Royal Dutch/Shell Group kept secret important details of its sharp reduction in oil and gas reserves, particularly in Nigeria, for fear of damaging its business relationship with the government there and the Nigerians' desire to produce more oil, the New York Times reported, citing internal company documents.

Shell continues to conceal the extent of its problems in Nigeria, the NYT said.

SNIP

It cited a report dated Dec 8, 2003, and prepared for senior executives by Walter van de Vijver, then the top official for exploration and production, which recommended that the revised Nigerian reserves remain "confidential in view of host country sensitivities."

Identifying the extent of Shell's lowered reserves in Nigeria could affect Nigeria's "quota discussions" with OPEC, the December report warned.

SNIP

Oil yields 90% of Nigeria's export revenue, which was estimated at $17.3 billion a year in 2002. A doubling of its production, as it intends, could mean billions extra in annual income.

http://www.bday.co.za/bday/content/direct/1,3523,1573712-6078-0,00.html

[Mari333]

26. I just got back from Seattle and

I havent been into a large city for a long time. I was in my son's car watching the hustle and bustle of the city, the stores at night that were closed but the city lights on in every store, the need for energy so apparent and so misused. People using so much with so much waste and not caring, people with no clue as to conservation. For petes sake, turn off the lights if you arent using them at night! If a store is closed, turn OFF the outside lights, carpool (I saw a lot of cars with one person in them on the freeways)..geezus theres SO DAMN MUCH we can do if we want to, its just having a mindset that we dont need to use everything all the time.
I also imagined Seattle (or any big city) turning off their "vanity lights" at night, and stop taking it all for granted.
I went home and turned off my lights, only leave one on per day and keep the heat down. The USA, we still hog so much and use so much and it would be so easy to change if we wanted to.