Reports related to this article:
Project(s): View 11 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released June 15, 2023 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)-- Shell plc (NYSE:SHEL) (London, England) plans to boost its production of natural gas and maintain its production of crude oil, while reducing its 2024-25 capital expenditures to between $22 billion and $25 billion each year, which would be down from 2023's expected $23 billion to $27 billion. But The Wall Street Journal reported Shell also is performing a review of its chemicals business, which took a $1.4 billion adjusted loss in 2022. Industrial Info is tracking more than $4.6 billion worth of oil and natural gas production projects from Shell in the Gulf of Mexico, more than $1.3 billion of which is attributed to projects already under construction.
Click on the image at right for a graph detailing Shell's offshore oil and gas exploration projects in the Gulf of Mexico, by lease area.
Despite their plans to cut annual operating costs by $2 billion to $3 billion by the end of 2025, Shell executives said in an update ahead of their annual investor day that the company will maintain its crude oil output at current levels until 2030, while increasing natural gas production and investing more in hydrogen and carbon capture and storage (CCS). Executives also restated their vow to achieve net-zero carbon emissions by 2050.
Earlier this year, Shell started production at its long-anticipated Vito floating production facility in the Mississippi Canyon area of the Gulf of Mexico. Vito is operated and 63.11% owned by subsidiary Shell Offshore Incorporated, with Equinor (NYSE:EQNR) (Stavanger, Norway) holding the remaining ownership. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read detailed reports on Vito's production platform, which finished construction in February, and its 2023 and 2024 drilling programs.
"Vito, our newest offshore platform in the Gulf of Mexico, has started production," said Sinead Gorman, the chief financial officer of Shell, in a recent quarterly earnings-related conference call. "Vito has an estimated peak production of 100,000 barrels of oil equivalent a day (BOE/d). Changes to the original design created a reduction of approximately 80% in CO2 emissions over the lifetime of the facility. This rework also brought about a cost reduction of more than 70% from the original concept."
Gorman also noted Shell made a final investment decision in the first quarter on its Dover development in the Mississippi Canyon, a project that will allow the company to bring on new production through $50 million in modifications to its existing Appomattox platform. The $100 million drilling campaign, expected to kick off in fourth-quarter 2024, will be supported further by $400 million in subsea infrastructure and $100 million in pipelines and related installations. Subscribers can read detailed project reports on Dover's platform, drilling, subsea infrastructure and pipelines.
Vito's success inspired Shell to use it as the design standard for its Whale development in the Minos Canyon, which will feature a 99% replication of the Vito hull and 80% of Vito's topsides, according to the company. Shell started construction on Whale's $700 million floating production unit (FPU) in the summer of 2022, along with $80 million in subsea infrastructure. Both projects are expected to be completed next summer, but Shell already has started work on its $400 million drilling program for Whale, which involves drilling two to four wells using a semi-submersible rig. Production is expected to begin following the FPU's completion, eventually reaching a peak of 100,000 BOE/d. Subscribers can read detailed reports on the FPU and subsea infrastructure.
The Whale project will be supported further by six to eight miles of $50 million in infield pipelines to collect crude from its wells and tie it back to the FPU for processing, as well as 31 miles of $20 million in lateral pipelines from the platform to Shell's Perdido pipeline, which will carry the gas to Williams Companies Incorporated's (NYSE:WMB) (Tulsa, Oklahoma) Markham Gas Processing Plant in Matagorda, Texas. Subscribers can read detailed project reports on the infield and lateral pipelines, and a detailed profile of the Markham plant.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a list of detailed reports for oil and natural gas production projects from Shell in the Gulf of Mexico.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Shell's offshore oil and gas exploration projects in the Gulf of Mexico, by lease area.Despite their plans to cut annual operating costs by $2 billion to $3 billion by the end of 2025, Shell executives said in an update ahead of their annual investor day that the company will maintain its crude oil output at current levels until 2030, while increasing natural gas production and investing more in hydrogen and carbon capture and storage (CCS). Executives also restated their vow to achieve net-zero carbon emissions by 2050.
Earlier this year, Shell started production at its long-anticipated Vito floating production facility in the Mississippi Canyon area of the Gulf of Mexico. Vito is operated and 63.11% owned by subsidiary Shell Offshore Incorporated, with Equinor (NYSE:EQNR) (Stavanger, Norway) holding the remaining ownership. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read detailed reports on Vito's production platform, which finished construction in February, and its 2023 and 2024 drilling programs.
"Vito, our newest offshore platform in the Gulf of Mexico, has started production," said Sinead Gorman, the chief financial officer of Shell, in a recent quarterly earnings-related conference call. "Vito has an estimated peak production of 100,000 barrels of oil equivalent a day (BOE/d). Changes to the original design created a reduction of approximately 80% in CO2 emissions over the lifetime of the facility. This rework also brought about a cost reduction of more than 70% from the original concept."
Gorman also noted Shell made a final investment decision in the first quarter on its Dover development in the Mississippi Canyon, a project that will allow the company to bring on new production through $50 million in modifications to its existing Appomattox platform. The $100 million drilling campaign, expected to kick off in fourth-quarter 2024, will be supported further by $400 million in subsea infrastructure and $100 million in pipelines and related installations. Subscribers can read detailed project reports on Dover's platform, drilling, subsea infrastructure and pipelines.
Vito's success inspired Shell to use it as the design standard for its Whale development in the Minos Canyon, which will feature a 99% replication of the Vito hull and 80% of Vito's topsides, according to the company. Shell started construction on Whale's $700 million floating production unit (FPU) in the summer of 2022, along with $80 million in subsea infrastructure. Both projects are expected to be completed next summer, but Shell already has started work on its $400 million drilling program for Whale, which involves drilling two to four wells using a semi-submersible rig. Production is expected to begin following the FPU's completion, eventually reaching a peak of 100,000 BOE/d. Subscribers can read detailed reports on the FPU and subsea infrastructure.
The Whale project will be supported further by six to eight miles of $50 million in infield pipelines to collect crude from its wells and tie it back to the FPU for processing, as well as 31 miles of $20 million in lateral pipelines from the platform to Shell's Perdido pipeline, which will carry the gas to Williams Companies Incorporated's (NYSE:WMB) (Tulsa, Oklahoma) Markham Gas Processing Plant in Matagorda, Texas. Subscribers can read detailed project reports on the infield and lateral pipelines, and a detailed profile of the Markham plant.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a list of detailed reports for oil and natural gas production projects from Shell in the Gulf of Mexico.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
