At Shell, we aim to help meet the energy needs of society in ways that are economically, environmentally and socially responsible. To manage the impact of our operations and projects we have a comprehensive set of business principles and rigorous standards covering health, safety, security, environment (HSSE) and social performance.
The oil and gas industry is becoming one of the larger industrial users of water worldwide as it seeks to meet energy demand with resources that are more water intensive to develop, such as tight gas, oil sands and biofuels.
For Shell, water management has become a key consideration for every operation, particularly in those areas where the supply of fresh water is constrained. This also applies to offshore operations, where discharge specifications are increasingly stringent. We can work with resource holders to ensure that they take a responsible approach to water management by, for instance, deploying water-efficient technologies throughout the value chain, maximising water recycling and minimising waste-water production and freshwater use.
Extracting hydrocarbons would be simple if they were found in huge underground lakes. However, it is always more complicated than that. They are held in porous rocks like water in a sponge, often in geological formations that are broken up and spread across a large area, which makes them difficult to find.
Shell forms strategic relationships with resource holders to help them acquire, process and interpret subsurface data. By leveraging Shell technology, expertise and experience, we can help them to identify hydrocarbon accumulations and evaluate whether they can be commercially developed.
If oil and gas companies are going to provide the energy that the world needs, they will have to drill many more wells. Some of those wells will sorely test the industry’s drilling and completion capabilities. They may lie under thousands of metres of water and stretch thousands of metres underground. In some cases, the number of wells needed to develop a field may prove overwhelming.
Shell’s cutting-edge technologies can help resource holders to reduce well costs, increase production rates and enhance ultimate recovery. Faster, cheaper drilling justifies more wells, and gives faster, higher production.
Three words best summarise the challenges associated with deep-water development: scale, complexity and extremity.
Shell has been at the forefront of deep-water developments for more than 30 years. Innovative technology, world-class project management skills and a stable core of outstanding people are the platform for the success we have enjoyed in this arena. Moreover, they are the keys to unlocking the world’s deep-water resources safely. Shell has delivered more than 20 successful deep-water projects and is the only international oil company to operate on five continents.
According to the International Energy Agency, there is enough natural gas in the world to meet current demand for 230 years. Of this estimated supply, almost half is in shale, tight sandstone and coal beds. Engineers must drill many more wells for tight and shale gas than in a conventional field to access volumes large enough to make a project worthwhile. Technology is the key to increasing productivity in every well, reducing costs and minimising operational footprints and impacts on the environment and communities in which we work.
Shell has decades of production experience with tight gas. Over time, we have found ways to develop the fields safely and produce the gas with greater efficiency, thereby lowering costs and limiting our environmental impact.
When an oil field reaches the end of its normal life, two-thirds of its oil, on average, is considered too difficult or too expensive to extract, so it remains in the ground. However, as global energy demand increases, so does the need to find ways of recovering more oil from existing resources.
Shell been committed to EOR for the past 40 years, during which time it has unlocked breakthroughs in a range of technologies crucial to raising recovery levels and meeting higher production goals in oil fields of various kinds.
The need to get the most from existing gas fields and to speed up the development of new ones has never been greater.
Shell, which produces some 9.6 Bscf/d of natural gas, can help resource owners to optimise production, enhance ultimate recovery levels and maximise return on investment, by working with them to embed its proven technologies, processes and best practices into their operations. This can also help the resource holder to execute its activities in a safe and environmentally responsible manner.
Wax, asphaltenes, hydrates, gas or liquid surges, scaling, emulsions, contamination – the obstacles to continuous, uninterrupted flow of hydrocarbons from deepwater pipelines are seemingly endless.
Shell provides flow assurance support through the project life cycle. For instance, during the pre-concept select phase, we can help to optimise the pipeline configuration, the pipeline design and the sizing of the liquid reception facilities. This requires an integrated approach with hydrate, wax, asphaltene, scale and emulsion experts, and one in which our proprietary, sophisticated thermal-hydraulic models are important enablers.
The first step in natural gas processing is to separate the raw natural gas from the water and condensate. Second, the contaminants, which include hydrogen sulphide, carbon dioxide, mercaptans, carbonyl sulphide and mercury, must be removed.
Shell has experience of this entire process – from reservoir to market. Drawing on its expertise in natural gas processing and gas treating technology, it helps resource owners by providing reliable, easy to operate, economically attractive line-ups that are environmentally responsible.
Gas projects have great potential to feed into major petrochemical projects, and Shell has more than 30 years’ experience of this kind of integrated approach. Shell can work with resource holders to explore options for developing a thriving petrochemicals business. This involves taking upstream gas (such as ethane or propane) or downstream gas (such as refinery dry gas) and converting it into high-value petrochemicals.
Resource holders can benefit from Shell’s integrated business model. We have access to a variety of feedstocks; shared experience and insights across the value chain; shared infrastructure; and deep manufacturing and processing expertise. These things give us a distinct advantage over standalone chemical companies.
Gas plants, refineries and power plants running on synthesis gas must contend with increasingly complex, contaminated gases. Shell provides a wide range of gas treating technologies that can achieve deep removal of the contaminants, thereby helping them to meet their environmental mandate.
Many of the world’s remaining gas reserves are richer in hydrogen sulphide and, therefore, sulphur, than previously exploited fields. At the same time, tighter standards mean gas plants need to achieve deeper levels of sulphur removal.
Shell provides a wide range of gas treating technologies that can achieve deep removal of the contaminants, thereby helping them to meet their environmental mandate.
Gas plant operators often have to contend with feeds that are highly contaminated with hydrogen sulphide, and must also meet increasingly stringent environmental regulations. To compound these challenges, ultra-high sulphur recovery levels are being specified on many projects. Sulphur recovery units can only recover about 97% of the sulphur fed to the Claus unit but tail-gas treating units can be used to further enhance the overall sulphur recovery to about 99.9%.
Shell’s catalyst company, Criterion Catalysts & Technologies, offers a range of tail-gas treating catalysts and works with customers to select the most appropriate candidate for each individual unit. We also help customers to optimise treatment processes in terms of the hardware involved and the conditions in the unit.
Gasification can help refiners to convert a wide range of low-value heavy residues and asphaltenes into synthesis gas. After treating, this gas can be used as clean fuel for high-efficiency combined cycle power generation (with optional carbon dioxide capture and storage); as a hydrogen source for refineries or chemical plants (combined with the CO shift reaction); or it can be used in the manufacturing of chemicals such as methanol and ammonia.
The Shell gasification process is a proven technology with a strong track record. Since the 1950s, Shell has built or licensed more than 170 reactors. Moreover, Shell operates 30 gasifiers in four different locations, which adds to its knowledge and experience.
In many parts of the world, current and anticipated legislation suggests that a reduction in the amount of carbon dioxide that industry will be allowed to emit in the future is inevitable.
Shell offers a market leading-technology (CANSOLV) that can economically capture carbon dioxide from post-combustion flue gas and, at the same time, helps to lower sulphur oxide and nitrogen dioxide emissions.
LNG is expected to see accelerated expansion with global demand potentially doubling in the next decade. Its rise will be driven by growing gas import needs in China, India, the Middle East and Europe – but also by new importers such as Malaysia, the Philippines, Singapore, Thailand and Vietnam.
As the complexities of the global gas market increase, major resource holders can benefit from experienced partners who know how to maximise value from the most technically challenging projects. Shell has a proven history in LNG and is active across the whole value chain of this dynamic industry: as a gas supplier, a technology provider, an equity owner, a shipper and a marketer.
FLNG technology will enable resource holders to access offshore gas fields that otherwise would be too costly or difficult to develop because it avoids the need for long underwater pipelines and new coastal infrastructure.
Shell is building the world’s first FLNG facility, Prelude FLNG, which will be moored off the coast of Australia to produce and export LNG. It will be the largest floating offshore facility in the world.
When gas markets are remote and the gas resource holders want to link gas resources to the oil price and diversify risk, GTL projects can create an additional route to monetise a country’s natural gas resources by turning it into high-quality liquid fuels and products. It also offers a way to access the oil products market, which is vast and global.
Shell has spent 40 years developing the technology to convert natural gas into liquid products. Our experience includes operating the first commercial GTL plant in Bintulu, Malaysia, and building and operating the world’s largest GTL plant, Pearl GTL, in Qatar.
Sulphur production has grown significantly in the MENA region in recent years. Many of the oil and gas reserves that are being exploited are rich in sulphur, and yet tighter standards mean that refineries and gas plants must reduce the amount of sulphur leaving their facility in finished products or as harmful emissions.