© D.L. Crumbley
Shell Board Kept In the Dark
One memo drafted on February 11, 2002, warned that about one billion barrels of oil-equivalent reserves appeared not to be in compliance with SEC guidelines.
Board learned of information only in early January 2004.
Chairman Sir Philip was ousted in early March 2004.
Most of the misstated reserves were recorded from 1997 to 2000, when Sir Philip was in change of exploration and production.
Oil/gas reserves were increased (not by discovery) by changing its accounting.
Source: Stephen Labaton and Jeff Gerth, “At Shell, New Accounting and Rosier Oil Outlook,” New York Times, March 12, 2004, pp. A-1 and C-4.