Oil reserves are always over-estimated and over-reported.

Current Events » in reply to Shell sacks CFO, oil reserves estimates lowered, again.

David F Mayer — 4/19/2004 9:16:25 PM (archived)

The reasons are simple:

1. The OPEC countries want to maximize their credit ratings.
2. The companies that do business with the OPEC countries want to keep the governments happy and keep the governments' credit ratings strong.

Therefore there is an "understanding" that published figures will greatly exceed whatever the petroleum geologists actually find.

The whole thread (14 posts)

Shell sacks CFO, oil reserves estimates lowered, again. - jms - 4/19/2004 8:11:54 PM
- Corrected link - jms - 4/20/2004 1:56:13 AM
  - re: heh heh, forgot about this subject - Success_Machine - 4/20/2004 2:41:25 AM
    - food or fuel - jms - 4/20/2004 3:44:20 AM
      - re: we'll eat the food component, and make fuel out of the leaves and stem - Success_Machine - 4/20/2004 6:05:53 AM
        
        thanks for the reading material... - jms - 4/20/2004 1:36:01 PM
        
        re: no problem, and no worries - Success_Machine - 4/21/2004 8:58:39 AM
- Oil reserves are always over-estimated and over-reported. - David F Mayer - 4/19/2004 9:16:25 PM
  - Therefore... - jms - 4/20/2004 2:05:55 AM
    - The current situation regarding the petroleum situation is like the guy who fell off the top of the Empire State Building. - David F Mayer - 4/20/2004 3:40:03 AM
      - So when does the next oil shock come? - Gary - 4/20/2004 4:17:08 AM
        
        re: You mean the "Hubbert Peak" ? - Success_Machine - 4/21/2004 7:25:01 AM
        
        An excellent analysis... - jms - 4/21/2004 7:44:42 PM
  - "Lies, cover-ups, fat cats and an oil giant in crisis" - Bowser - 4/20/2004 1:04:12 AM

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