Shell CEO has no plans to ease investments in oil, gas technology
Royal Dutch Shell has reiterated its commitment to invest in oil and gas sources worldwide, adopting more advanced production technologies to ensure the most efficient output despite the economic slowdowns in the US and Europe.
“I don’t believe that the world economy will face a double dip. You can see that although the economies in the US and Europe are not so good, Shell does not have any plan to cut our investment. Rather, Shell, as well as other oil and gas producers, has to accelerate our oil and gas production so that we can serve the rising demand,” CEO Peter Voser said recently.
Shell has committed to investing US$100 million (Bt3 billion) through 2014 in global oil-and-gas exploration and production, as well as in efficient technology, he said.
The world’s population was forecast to grow from 7 billion currently to 9 billion by 2050, with most of the new faces coming from emerging countries, he said. Securing new supplies of energy like oil and gas will become an important issue in the near future. Not only will the world have to consume energy efficiently, but oil and gas producers will also have to produce energy more efficiently.
To raise production efficiency, Shell has to invest in the most advanced technology. That means oil and gas prices in the future will no longer be cheap.
“Where to find new oil and gas resources, and which technology to use to find and produce such energy, is our concern. That’s why we’re heavily investing in unconventional [energy sources], like shale gas and floating liquefied natural gas. The era of cheap oil is over,” he said.
Although the company’s goal was to produce as much oil and gas as possible to serve rising demand, balancing production activities and the environment was also a concern. Shell targets being in the world’s top quartile for production safety, he said.
Balancing oil and gas exploration and production with environmental needs calls for political will and energy policies such as support for investing in renewable energy. Some emerging countries have already addressed this issue, he said.
“Besides producing as much energy as possible, to grow our business sustainably is another big challenge. We must be transparent in whatever we do. And we will not let our business harm the environment,” he said.
