Originally posted by HS Thomas:
I wonder why ? Shell is the British Enron. Or rather Anglo-Dutch's - overstating reserves by 20%. Sir Philip Watts and Shell could face criminal charges. Though the company is damaged it ain't bust yet and the company still yields good dividends. But it desperately needs to find new oil reserves. I can see why they would adopt cost-cutting measures.
[ April 28, 2004: Message edited by: HS Thomas ]
I think they were just overoptimistic rather than deliberately dishonest.
Remember the entire system of predicting oil reserves is based on guesswork as much as anything and as new geological data becomes available there can be big differences.
Shell has officially stated that this plan is NOT due to the latest problems with oil reserves.
Given that it takes time to organise an outsourcing project I think they started the path well before those problems became known.