From Reuters: Shell Report Exposes Lies, CFO Sacked
By Andrew Callus and Janet McBride
LONDON (Reuters) - Royal Dutch/Shell executives knowingly hid an oil and gas reserves shortfall for years and feared the game was up as far back as 2002, an independent review revealed on Monday. The news came as the oil giant cut reserve estimates again and sacked a third senior executive, Chief Financial Officer Judy Boynton, for her part in the scandal, which shocked investors when it finally became public in January this year. Shell added 300 million barrels to total booked reserve cuts for 2002, to make a total reduction of 4.35 billion barrels of oil equivalent (boe) -- more than 22 percent of reserves originally booked for that year. It also cut a further 200 million boe from 2003 bookings for a total 2003 reserves cut of 500 million boe. The eagerly-awaited report, commissioned by non-executive directors in the aftermath of the reserves debacle and compiled by U.S. law firm Davis, Polk and Wardwell, unearthed memos in which one executive talked of his "lying" and about how the firm had "fooled" the market.

This is good 'cause they are cleaning house and spruring the rest of the majors to clean up their acts, too.
This sucks 'cause it is increasingly difficult to trust reserve reports from either companies or countries given past reporting.