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Released April 10, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--In its second major announcement for operations in the Gulf of Mexico this year, Shell plc (NYSE:SHEL) (London, England) said that production started at its Dover prospect.
Shell said Tuesday that production started at Dover using a tie-back to infrastructure at its Appomattox production hub.
"Dover is another example of the ways in which we maximize the production of our deep-water hubs as we deliver on our strategy to create more value with less emissions," said Colette Hirstius, a regional executive vice president for Shell. "The high-margin, lower-carbon barrels from the Gulf of America are essential to our energy system, both now and in the future."
U.S. President Donald Trump renamed the Gulf of Mexico as the Gulf of America via executive action, though it's not universal. At around 1.8 million barrels per day (BBL/d), Gulf oil production accounts for about 13% of total U.S. crude oil output.
Discovered in 2018, Shell believes Dover holds an estimated 44.5 million barrels of oil equivalent in recoverable reserves. The company expects peak production to reach 20,000 barrels of oil equivalent per day (Boe/d).
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for projects related to the Dover offshore development.
Dover marks the second startup in the Gulf of Mexico for Shell this year. Joined by Chevron Corporation (NYSE:CVX) (Houston, Texas), the company in January announced the start of production from the Whale facility, situated in the Alaminos Canyon Block about 200 miles south of Houston, Texas.
The partners at Whale estimated peak production would be around 100,000 Boe/d, though much of that would be in oil as the Gulf of Mexico is only a nominal natural gas producer.
The Whale field was discovered in 2017. The semi-submersible rig parked over the field has 15 wells tied back to the host facility.
Production from U.S. territorial waters is considered low-carbon relative to other basins due in part to the small developmental footprint. Industry-backed analysis from the National Ocean Industries Association, alongside consultant firm ICF, estimated the carbon intensity of Gulf production was 46% lower than the global average outside of North America.
Shell during the fourth quarter reported adjusted earnings of $3.7 billion, compared to $6 billion during the same period in 2023. The company blamed lower prices and margins for the decline.
A lower-for-longer market for commodity prices last year left welts on many of the largest energy companies in the world. Crude oil prices were essentially range-bound for much of 2024, leaving refinery margins at historic lows.
First-quarter performance could be bruised by U.S. trade policies. President Trump on Tuesday made good on sweeping tariff threats, leaving global markets in tatters. West Texas Intermediate, the U.S. benchmark for the price of oil, started the year at $72.50 per barrel. It was trading closer to $56 per barrel in early Wednesday trading.
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
Shell said Tuesday that production started at Dover using a tie-back to infrastructure at its Appomattox production hub.
"Dover is another example of the ways in which we maximize the production of our deep-water hubs as we deliver on our strategy to create more value with less emissions," said Colette Hirstius, a regional executive vice president for Shell. "The high-margin, lower-carbon barrels from the Gulf of America are essential to our energy system, both now and in the future."
U.S. President Donald Trump renamed the Gulf of Mexico as the Gulf of America via executive action, though it's not universal. At around 1.8 million barrels per day (BBL/d), Gulf oil production accounts for about 13% of total U.S. crude oil output.
Discovered in 2018, Shell believes Dover holds an estimated 44.5 million barrels of oil equivalent in recoverable reserves. The company expects peak production to reach 20,000 barrels of oil equivalent per day (Boe/d).
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for projects related to the Dover offshore development.
Dover marks the second startup in the Gulf of Mexico for Shell this year. Joined by Chevron Corporation (NYSE:CVX) (Houston, Texas), the company in January announced the start of production from the Whale facility, situated in the Alaminos Canyon Block about 200 miles south of Houston, Texas.
The partners at Whale estimated peak production would be around 100,000 Boe/d, though much of that would be in oil as the Gulf of Mexico is only a nominal natural gas producer.
The Whale field was discovered in 2017. The semi-submersible rig parked over the field has 15 wells tied back to the host facility.
Production from U.S. territorial waters is considered low-carbon relative to other basins due in part to the small developmental footprint. Industry-backed analysis from the National Ocean Industries Association, alongside consultant firm ICF, estimated the carbon intensity of Gulf production was 46% lower than the global average outside of North America.
Shell during the fourth quarter reported adjusted earnings of $3.7 billion, compared to $6 billion during the same period in 2023. The company blamed lower prices and margins for the decline.
A lower-for-longer market for commodity prices last year left welts on many of the largest energy companies in the world. Crude oil prices were essentially range-bound for much of 2024, leaving refinery margins at historic lows.
First-quarter performance could be bruised by U.S. trade policies. President Trump on Tuesday made good on sweeping tariff threats, leaving global markets in tatters. West Texas Intermediate, the U.S. benchmark for the price of oil, started the year at $72.50 per barrel. It was trading closer to $56 per barrel in early Wednesday trading.
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) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
