Editorial Comment ///

The problem with reserves. Ever since Shell announced in January that it would downgrade its reserves by 20%, the oil world has gone crazy. We in the oil patch know that reserve calculations are slippery. The downgrades are in Asia, mostly in Nigeria and Australia. The lesson learned is that while Shell booked its Australian Gorgon reserves in 1997, partner Chevron held them in its pocket, waiting on project particulars and approvals, which were only recently granted.

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