Jan 7, 2018
Shell looks to shale production for rapid growth
The growth of Royal Dutch Shell's oil and gas operations in the next decade will depend on shale production, its chief executive has said, in the latest sign of western energy groups pinning their hopes for expansion on those "Unconventional" resources. The strategy aligns Shell with peers ExxonMobil and Chevron, the two largest US oil groups, which are looking to US shale reserves as a principal source of new production over the next few years. Shell is stepping up investment in the Permian Basin of Texas and New Mexico and the Duvernay shale in Alberta, and expects to double total production of unconventional oil and gas from about 250,000 barrels of oil equivalent a day last year to about 500,000 boe/d by the end of the decade. Mr van Beurden said Shell had been working hard in the past few years to cut production costs in shale, and with "a little bit of help from the oil price going up, we now see that we can significantly accelerate investment into this opportunity". Over the next few years, Shell is expecting a boost to oil production from its deep water offshore assets in Brazil and the US Gulf of Mexico, and could invest in new liquefied natural gas production plants in the US and Canada.
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