Shell replacing oil reserves faster than depletion

0 Comments | AFP, March, 2008

LONDON (AFP) — Oil giant Royal Dutch Shell said on Monday that it was replacing proved oil and gas reserves faster than they were being depleted despite the sale of a part of a major asset in Russia.

Chief executive Jeroen van der Veer said as oil reached another record high price: "This is an unprecedented phase of activity for Shell in a new energy landscape."

In an annual report, the company said net capital investment would amount to 26-27 billion dollars (16.4-17.0 billion euros) this year.

The size of reserves is a central factor in the valuation of an oil company.

In turn, global prospects for their replacement is central to assessments of the future price of oil and therefore the incentives for oil groups to invest in new projects.

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