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

To: koan who wrote (78840)	5/7/2008 1:54:01 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

Major oil firms, other than Shell, are constantly revising their producing oil reserves based on additional studies by their production geologists. This sort of reassessment increases producing reserves as often as it decreases them. After the bizarre Shell fiasco investors and regulators like the SEC became particularly sensitive to reported changes and how these reserves were being calculated. All major oil firms went through their oil reserve accounting estimates and made certain none of their estimates could be reduced further, and reduced those that could be reduced, leaving their reserves slightly even more understated. During this period very small percentage changes made by a firm like BP attracted enormous and attention. The hysteria of the witch hunt during this period is over, during which every small change generated huge and unwarranted attention. You can now be wholly confident that the oil reserves reported by major oil firms greatly and thoroughly under-states the total amount of oil they have to produce. To claim otherwise is simply laughable and horribly misinformed. .