Over the past 30 years, Shell has forged a leading position as a deepwater oil and gas producer and developer. Our world-class deepwater capability is reflected by a record of more than 20 successful deep water projects, deployed globally, and a remarkable portfolio. The challenges in safely and successfully developing deepwater fields include scale, complexity and environmental extremes. Nevertheless, we are moving further offshore, into deeper waters, addressing more complicated reservoirs. We build upon our successes, incorporating the key lessons into our new mega projects and into our technology programmes, to ensure we remain a global deepwater leader.
In addition to the innovative approaches seen in deepwater oil projects, we are seeing unparalleled and exciting innovation in our industry creating new sources of supply and demand for liquefied natural gas (LNG). Shell is pioneering large-scale Floating LNG (FLNG) with the groundbreaking Prelude project. The Prelude megaproject is well underway, with construction occurring at various locations around the world. Shell FLNG will unlock additional significant reserves of already discovered gas. And we are now seeing others turning to our technology to help develop their reserves such as the Browse joint venture in Australia. FLNG projects will create jobs, tax revenues and new opportunities for both businesses and host governments.
Currently, the Arctic produces about 10% of the world’s oil and 25% of its gas, altogether some 8 million barrels of oil equivalent per day, of which the majority is produced in the Russian Arctic onshore. But the region holds substantial additional resources. The 2008 US Geological Survey estimated that the Arctic contains 13% of the world’s yetto- find oil, 30% of the world’s yet-to-find gas, and 20% of the yet-to-find natural gas liquids resources on the planet, totalling around 400 billion barrels of oil equivalents. As energy projects become more complex and technically demanding, we at Shell believe our engineering experience will be a deciding factor in Arctic energy growth and the Sakhalin-2 project, which operates amid some of the world’s harshest conditions in Russia’s far east demonstrates Shell’s ability to manage the risks and ensure safe and responsible development.
At Shell, we have no doubt that we will need to continue to push new physical and innovation frontiers in the future as we move to deeper water and increasingly remote locations, and as demand for energy around the world increases. We look forward to the challenge.