Wednesday, September 29, 2010

Shell (NYSE:RDS-A) Expanding in Gulf Even in Tough Environment

Even though the BP (NYSE:BP) oil spill has created a tough environment to work in for the oil industry in the Gulf of Mexico, that isn't stopping Royal Dutch Shell Plc (NYSE:RDS-A) from focusing on significant expansion in the region.

According to Marvin Odum, who directs exploration and production at Shell in North and South America, by 2015 and further down the road, he sees the company increasing production by over 250,000 barrels of oil equivalent a day in the Gulf.

Odum said, “In the Gulf of Mexico we’ve increased our efforts in the deepwater in recent years with encouraging results. The longer-term outlook for deepwater remains positive, despite the current drilling moratorium.”

Shell CFO Simon Henry concurs with that, saying the company has six oil discoveries they made recently which could “extend production to the 250,000 barrels a day level for quite some time to come.”

The company said the oil moratorium by the Obama administration has resulted in close to 8,000 barrels of oil less in production a day.

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