Shell Planning to Open Up Some 20 Billion boe of Resources by 2010

Royal Dutch Shell plc updated on its strategy today. Chief Executive Jeroen van der Veer commented “our strategy of ‘more upstream, profitable downstream’ is on track”. “Upstream, we are committed to increase our production to 3.8-4.0 million barrels of oil equivalent in 2009, and we have record investments for our future in hand. Downstream, we are making selective growth investments, after a period dominated by disposals. Competitive cost performance and operational excellence are embedded in our strategy. Our downstream businesses should generate over $1.0 billion of further improvements by the end of this decade.”

“We see great potential in unconventional hydrocarbons, in plays such as oil sands and gas-to-liquids. These ‘unconventionals’, and Shell’s technology, should help us drive full replacement of our production, on both a resources and reserves (1) basis, and sustain long term production growth.” said van der Veer. Such unconventional resources, however, may not qualify as SEC proved oil & gas reserves, where the company has previously forecast an average 100% SEC proved reserves replacement ratio over 2004-08.

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