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Released January 10, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Shell plc (NYSE:SHEL) (London, England) is brushing off recent problems at its liquefied natural gas (LNG) business, projecting "significantly higher" profits from its gas-trading unit for the fourth quarter of 2022. But the company, like its peers, is bracing for an unpredictable 2023, following a collapse in crude oil prices and a host of challenges such as Russia's ongoing war on Ukraine and China's roiling economic outlook. Industrial Info is tracking about $110 billion worth of active projects from Shell worldwide--including about $21 billion in the U.S., more than $5 billion of which is under construction.
Click on the image at right for a graph detailing Shell's active U.S. projects, by industry sector.
In a press release, Shell executives noted that the company's strong outlook for its global upstream business defies a longer-than-expected outage at its Prelude floating LNG (FLNG) project in Australia, where it has experienced a series of operational issues. Executives also expect strong earnings from natural gas trading will help to offset about $2 billion in additional windfall taxes for the fourth quarter, which they do not believe will have any substantial impact on adjusted earnings.
Nonetheless, problems at Prelude forced Shell to cut its projected global LNG output to between 6.6 million and 7 million metric tons, down from 7.2 million metric tons in the third quarter. Shell's LNG trading division recorded a loss of more than $900 million in the third quarter, when European prices skyrocketed following Russia's decision to halt supplies to much of the continent. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can learn more from a detailed plant profile on Prelude FLNG.
Overall, Shell expects its upstream output will total between 1.825 million and 1.925 million barrels of oil-equivalent per day (BOE/d), generally on the higher end of its previous estimate of 1.75 million to 1.95 million BOE/d. It's still an increase from Shell's reported third-quarter output of 1.79 million BOE/d.
Among the projects set to contribute substantially to Shell's 2023 production is the Vito deepwater project, which will be Shell's 11th deepwater project in the Gulf of Mexico. Vito has an estimated throughput capacity of 100,000 barrels per day (BBL/d) of crude oil and 100 million standard cubic feet per day of natural gas; the Vito field is estimated to contain 300 million BOE. Subscribers can read detailed project reports on the production platform, which covers eight subsea wells, as well as its 2023 and 2024 drilling programs.
Shell's 12th deepwater project in the Gulf, the Whale project in the Alamo Canyon area, is modeled heavily on the Vito project, with "a 99% replicated hull and an 80% replication of the topsides," according to the company. Whale has an estimated peak capacity of 100,000 BOE/d; the Whale field is estimated to contain 490 million BOE. Whale is 60% owned by Shell and 40% owned by Chevron Corporation (NYSE:CVX) (San Ramon, California).
Construction on the main components began in the summer of 2022, and production is scheduled to begin in early-to-mid 2024. Subscribers can read detailed project reports on the FPU, drilling program, subsea infrastructure, infield pipelines and export pipelines servicing the project.
Kurt Shallenberger, Shell's manager for the Vito project, toured Vito's semi-submersible facility last April, during which he told Upstream Online that Whale was so similar in design that it made fixing problems easier: "Let's say I have a quality issue on a piece of equipment built by a vendor. "For every quality issue I discover, I can call ahead to the Whale team and let them know in advance so they can fix it before the item is built. Essentially, it's a feedback loop that's happening in real time."
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 full list of reports for active Shell projects across the U.S., and click here for a full list of reports for global projects.
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 active U.S. projects, by industry sector.In a press release, Shell executives noted that the company's strong outlook for its global upstream business defies a longer-than-expected outage at its Prelude floating LNG (FLNG) project in Australia, where it has experienced a series of operational issues. Executives also expect strong earnings from natural gas trading will help to offset about $2 billion in additional windfall taxes for the fourth quarter, which they do not believe will have any substantial impact on adjusted earnings.
Nonetheless, problems at Prelude forced Shell to cut its projected global LNG output to between 6.6 million and 7 million metric tons, down from 7.2 million metric tons in the third quarter. Shell's LNG trading division recorded a loss of more than $900 million in the third quarter, when European prices skyrocketed following Russia's decision to halt supplies to much of the continent. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can learn more from a detailed plant profile on Prelude FLNG.
Overall, Shell expects its upstream output will total between 1.825 million and 1.925 million barrels of oil-equivalent per day (BOE/d), generally on the higher end of its previous estimate of 1.75 million to 1.95 million BOE/d. It's still an increase from Shell's reported third-quarter output of 1.79 million BOE/d.
Among the projects set to contribute substantially to Shell's 2023 production is the Vito deepwater project, which will be Shell's 11th deepwater project in the Gulf of Mexico. Vito has an estimated throughput capacity of 100,000 barrels per day (BBL/d) of crude oil and 100 million standard cubic feet per day of natural gas; the Vito field is estimated to contain 300 million BOE. Subscribers can read detailed project reports on the production platform, which covers eight subsea wells, as well as its 2023 and 2024 drilling programs.
Shell's 12th deepwater project in the Gulf, the Whale project in the Alamo Canyon area, is modeled heavily on the Vito project, with "a 99% replicated hull and an 80% replication of the topsides," according to the company. Whale has an estimated peak capacity of 100,000 BOE/d; the Whale field is estimated to contain 490 million BOE. Whale is 60% owned by Shell and 40% owned by Chevron Corporation (NYSE:CVX) (San Ramon, California).
Construction on the main components began in the summer of 2022, and production is scheduled to begin in early-to-mid 2024. Subscribers can read detailed project reports on the FPU, drilling program, subsea infrastructure, infield pipelines and export pipelines servicing the project.
Kurt Shallenberger, Shell's manager for the Vito project, toured Vito's semi-submersible facility last April, during which he told Upstream Online that Whale was so similar in design that it made fixing problems easier: "Let's say I have a quality issue on a piece of equipment built by a vendor. "For every quality issue I discover, I can call ahead to the Whale team and let them know in advance so they can fix it before the item is built. Essentially, it's a feedback loop that's happening in real time."
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 full list of reports for active Shell projects across the U.S., and click here for a full list of reports for global projects.
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).
