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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (78822)	5/7/2008 4:50:48 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Death of the SUV globaleconomicanalysis.blogspot.com Mish

To: Elroy Jetson who wrote (78822)	5/7/2008 10:34:01 AM
From: maxncompany	Read Replies (2) \| Respond to of 116555

El Paso overstates reserves edit due to bad link labaton.com "and (5) overstated El Paso’s proved oil and natural gas reserves by more than 40 percent, thereby causing a material overstatement of its income." Royal Dutch Shell overstates reserves corpwatch.org This may not be pervasive throughout the industry, but these are two well known examples.

To: Elroy Jetson who wrote (78822)	5/7/2008 12:54:04 PM
From: koan	Read Replies (1) \| Respond to of 116555

Elroy: "A college teaching students that oil companies overstate their oil reserves is pretty laughable." koan: Nonsense. BP got in trouble a couple of years ago overstating their reserves. And many believe the reason OPEC doesn't increase production is that they cannot. fields are filling up with salt water. Resource companies routinely overstate reserves as it bolsters their stock price. That is the reason Canada has a 43-101 compliant rule. Huberts world peak oil for EC: Message 24567220 Elroy: "The truth is oil companies are greatly motivated to understate their reserves for a number of reasons. This in turn under-counts the size of new discoveries." koan: "funny both Russia and Mexico announced production is falling hard and fast. Logic dictates if htey were under reporting reserves this would not be possible" Elroy: "On the other hand, some oil producing nations are motivated to overestimate their remaining reserves for political reasons." Elroy: "For different political reasons Russia underestimates their reserves and the potential of producing their reserves. There's a large difference in the rate at which these reserves could have been produced under major oil company management and the new domestic management. Hugo Chavez is running into this problem, but he still finds it advantageous to over-estimate, particularly in terms of quality of reserves.