Abstract

Royal Dutch/Shell (Shell) has been reportedly involved in inflating its ‘proven’ oil reserves figures that has significantly tarnished its image as one of the best professionally managed companies in the world. The case provides detailed insights into the role played by the top management at Shell leading to the oil reserves controversy. It describes the events leading to the Shell’s announcement to revise its oil reserves figures. Finally, the case examines a few initiatives taken by the company to restore investor confidence and the lessons to be learned from the controversy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Unethical business practices.

Keywords

Royal Dutch/Shell, Oil Reserves Controversy, Philip Watts Walter Van de Vijver, Securities and Exchange Commission (SEC), SEC Definitions for Proved Oil Reserves, Reserve Replacement Ratio, Reserves Recategorization Corporate Governance, Business Ethics