Shell says reserves may slip more

Royal Dutch Shell, struggling to replace its aging oil and gas fields, said Thursday that new developments may fail to keep pace with production for the next three years, signaling its reserves may fall further.

Projects may be delayed because of short supplies of materials and rising prices for contractors and services, Chief Executive Officer Jeroen van der Veer told reporters in London. Meeting a goal of replacing 100 percent of the oil and gas pumped from its fields from 2004 to 2008 is “less likely” as a result, he said.

Houston Chronicle