Shell Chairman: "I will not resign".

[Dover]

Feb. 5, 2004, 10:59PM

Shell chairman: 'I will not resign'

He vows to repair reserves situation
Copyright 2004 Houston Chronicle News Services

LONDON — Royal Dutch/Shell's beleaguered boss was apologetic but defiant on Thursday, insisting he would not resign over a shocking cut in oil reserves as he reported profits near the bottom of forecasts.

..snip..

Shell sent its shares into a tailspin in January when it revealed its proven reserves had been overbooked by 20 percent. The news knocked more than $15 billion off its stock market value as investors contemplated less than 11 years of reserves at current output rates against more than 13 before the downgrade....cont'd

http://www.chron.com/cs/CDA/ssistory.mpl/business/2390204

[JohnyCanuck]

1. Did someone say Peak Oil

Petroleum Geologist Dr. Colin Campbell has been saying for a while that oil reserves have been overestimated and we are closer to world oil production peaking than the oil companies and governments care to let on.

The Lamp is published quarterly for ExxonMobil shareholders. Just now is the first issue for 2003, Vol. 85 No.1 , available on the net. In an article named “A revolutionary transformation ” the president of ExxonMobil Exploration Company, Jon Thompson, reflects on the dramatic changes in exploration technology over the past 40 years and the challenges that lie ahead in finding and producing future supplies of oil and gas.

The most interesting part for ASPO is:

Major challenges ahead

“Our industry can certainly be proud of its past achievements. Yet the challenges we will face in the coming years will be every bit as great as those encountered in the past, due in part to ever-increasing global energy use.

For example, we estimate that world oil and gas production from existing fields is declining at an average rate of about 4 to 6 percent a year. To meet projected demand in 2015, the industry will have to add about 100 million oil-equivalent barrels a day of new production. That’s equal to about 80 percent of today’s production level. In other words, by 2015, we will need to find, develop and produce a volume of new oil and gas that is equal to eight out of every 10 barrels being produced today. In addition, the cost associated with providing this additional oil and gas is expected to be considerably more than what industry is now spending.

http://www.peakoil.net/TheLamp/TheLamp.html

[Zhade]

2. Can't repair what isn't there.

Like it or not, Shell, Peak Oil is here. Either help us deal with it, or get the hell out of the way.

[hunter]

3. The other oil companies will now remain silent...

They see how it's a messy business to announce any "shocking cut in oil reserves."

Full speed ahead, and damn the icebergs! Our ships are unsinkable!

[Dover]

4. Shell's Bleak Forecast

http://www.nytimes.com/2004/02/06/business/worldbusiness/06shell.html

February 6, 2004

Shell Says Net Income Fell 19%, and It Offers a Bleak Forecast
By HEATHER TIMMONS

ONDON, Feb. 5 - Royal Dutch/Shell reported disappointing year-end results and production forecasts on Thursday while its embattled chairman and chief executive, Sir Philip Watts, said he intended to stay on.

Shell has been on the defensive since it said on Jan. 9 that its proven reserves were 20 percent less than previously reported. The discrepancy has led investors to look more closely at the company's two-headed capital structure, and the company said on Thursday that it would be willing to re-examine its foundation.

But analysts said that willingness, coupled with the weak results and production outlook, comes a bit late.

"Perception has gone through a seismic shift," said Ivor Pether, head of portfolio construction at Royal London Asset Management.

..cont'd

[Minstrel Boy]

5. No worries: flying hydrogen cars by 2029!

Man, that's gonna be some sweet world of tomorrow!