Exploration & Production

Meeting growing energy demand
Shell is meeting the challenge of growing energy demand by discovering new hydrocarbon resources that can be produced economically, efficiently and safely. In support of Shell’s strategy of More Upstream, Profitable Downstream, EP focuses on increasing production and seeking to expand our resources. In 2007, our daily oil and gas production was 3.3 (3.2 excluding oil sands) million barrels of oil equivalent (boe).

Technology and innovation
Shell has been spearheading innovation in the industry for as long as we have been in business. We use a range of technologies and skills to explore for oil and gas in ways that reduce the risk of error. As a result, Shell occupies a leading position in the industry on the basis of major discoveries, resources added and new business generated. We assess areas that could contain hydrocarbons using information from field geology, satellite, remote sensing, seismic and other technologies. Our virtual reality centres help us interpret results from seismic surveys in the most accurate and reliable way possible.

Producing major new resources often means operating in hostile terrain and remote locations such as ultra-deep water and icy seas

Producing major new resources
Producing major new resources often means operating in hostile terrain and remote locations such as ultra-deep water, icy seas or deserts. One example of how EP uses advanced technologies is the Perdido project in the Gulf of Mexico, which will be the world’s deepest spar when it begins operations in the coming decade. Shell and partners also recently announced the joint development of the Gumusut-Kakap deep-water field, offshore Sabah, Malaysia. Oil will be produced from a depth of 1,300 metres using the region’s first deep-water floating production system connected to 19 subsea wells.

Unconventionals
Difficult to produce and unconventional hydrocarbons will play a vital role in the future energy supply. According to the United States Geological Survey (USGS)and the International Energy Agency (IEA), unconventional oil resources (heavy oil, bitumen, oil sands and oil shales) worldwide are estimated to be around 7 trillion bbls. Shell has a set of unique capabilities to unlock these massive resources and we continue to develop new techniques to solve the various challenges while trying to minimise the CO2 footprint.

Maximising recovery
As oil that is relatively easy to find and extract becomes increasingly scarce or difficult to access, the need to find ways of recovering more oil from existing fields increases. EP has long been a pioneer of enhanced oil recovery techniques. At Fahud, in Oman, for example, an innovative design for steam injection is expected to boost recovery by as much as 10%.

Environment and society
Securing a responsible energy future through sustainable development is important to Shell. EP is committed to develop, extract and deliver energy profitably, in a socially and environmentally responsible way.