Shell cuts reserves again

ROYAL Dutch/Shell has downgraded its oil and gas reserves for the second time this year, recategorising a further 250m barrels of oil equivalent (boe) last month. But while reductions in reserves inventories are never good news, the latest—a trifle compared with January's whopping 3.9bn boe downgrade—is at least a sign that the company's new leaders are determined to win back confidence in their assessment procedures. Shell's year started turbulently when it redefined about 20% of its proved reserves as probable. Although they initially weathered the ensuing stock-market and media storm, the chairman, Philip Watts, and exploration and production chief executive, Walter van de Vijver, were ev