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ARE SEC GUIDELINES PAVING A ROCKY ROAD FOR SHELL ?

While much of the media has grown comfortable shaking its head in disapproval at each new press release from Shell (NYSE: RD), analyst Derek Butter at Wood Mackenzie says the company's latest reserves re- categorization wasn't like the rest. He also has some concerns about the consistency with which SEC guidelines are understood and implemented across the peer group and whether current reserve reporting is even "fit for purpose"--mainly, the needs of investors.

In February, Shell announced that it would take a fifth write- down, this time of 1.4 billion barrels equivalent on its proved reserves for 2003. This was on top of earlier write-downs of 4.47 billion barrels. At press time ...

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