Oil companies face calls for audit crackdown
Oil companies are facing calls for a crackdown in the way they handle their oil and gas reserve figures, after Friday's shock announcement from Shell when the group cut its estimated proven oil and gas reserves by 20%.
According to global energy consultants Wood Mackenzie,outside auditors should check oil company figures given their importance as indicators of overall performance.
The Royal Dutch/Shell group shocked investors when it said proven reserves at the end of 2002 were 15.5 billionn barrels, down from the 19.4 billion previously stated.
The announcement caused Shell's share price to slump 7.5%, wiping £3bn (€4.33bn) off its market value.
