Shell says production to grow

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) said it would increase production by a healthy 2 to 3 percent annually over the next four years and that it would scale back investments in green energy.

The world’s second-largest non-government controlled oil company by market value, whose output has been falling for six years, said big investments in low-decline projects will allow it to meet its 2 to 3 percent annual growth target in 2009 through 2012.


Some analysts had predicted Shell would cut the target, which compares with BP’s (BP.L) goal of 1 to 2 percent growth over the period.

However, Shell said the expectation of cost reductions in the industry and the uncertain economic outlook, which has contributed to a $100/bbl drop in crude prices since July, meant it may hold off from starting some new projects.

Consequently, the company said it was impossible to affirm its earlier goal of 2 to 3 percent growth in the long term.

Reuters