Shell Posts Worst Performance on Oil Reserves Since 2004 Scandal
- Europe's top energy group blames low oil prices for the drop
- Shell CFO says 2015 reserves replacement ratio not `normal'
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Royal Dutch Shell Plc said it depleted its oil and gas reserves much faster than it replenished them with new resources in 2015, its worst performance since an accounting scandal that engulfed the company 12 years ago.
Shell said its reserves replacement ratio -- the proportion of oil and gas production during the year that was offset by the addition of new resources -- was minus 20 percent. The company not only failed to replace any of the 1.1 billion barrels equivalent it pumped in 2015, but also wrote off another 200 million barrels to account for the plunge in oil prices.