Shell Cuts Reserves Again as Probe Widens

Royal Dutch/Shell Group cut its oil and gas reserves for a second time this year in a fresh blow to investor confidence as U.S. regulators stepped up legal probes.

Shell’s decision to slash its proven reserves by 20% in January had already sent shockwaves through the industry, cost its two top bosses their jobs and wiped billions of dollars off its stock market value.

The second reserves cut was much smaller, at just 220 million barrels for 2003, and 250 million for 2002, compared with the original restatement of 3.9 billion barrels. But it could be just as embarrassing, because it includes reserves that were identified as bookable only a few weeks ago, after the January admission.