Shell Learned Tough Lesson

The investigation commissioned by Shell reported that Royal Dutch/Shell Group top executive wrote in an e-mail that he was "sick and tired about lying" on the company's oil and gas reserves estimates.
The investigation found that the company had publicly overstated the size of its reserves. The shaken oil giant also announced that its CFO resigned.
The company said Monday that it had now downgraded a total of 4.35 billion barrels, or about 22 percent of its reserves, from "proven" to less certain categories. That is 200 million barrels more than its previous estimate.
We recall, that Shell said in January that it was downgrading 3.9 billion barrels, or about 20 percent of its total holdings. A March announcement brought the total downgraded to 4.15 billion barrels.
The disclosures caused shareholders worry and led to a string of resignations.
Shares in Shell Transport & Trading Co. fell 0.76 percent to 390 pence ($7.06) Monday on the London Stock Exchange.
"Shell has unquestionably stumbled and has learned a tough lesson," said Lord Oxburgh, chairman of Shell Transport and Trading Co. PLC, calling that story with Shell reserves estimates a "major embarrassment."