DELIVERY & GROWTH FIVE-YEAR FACT BOOK - Shell

UPSTREAM – AMERICAS
USA
Shell has been active in the USA since 1912 and is now a major
oil and gas producer in the Gulf of Mexico (GoM) and of onshore
tight gas. We are also involved in exploration.
In 2008, Shell acquired significant exploration interests in the
Chukchi Sea, offshore Alaska and also won leases in GoM,
onshore New Mexico and Louisiana.
Shell is using technology and efficient multi-rig drilling methods
to develop tight gas resources in low-permeability reservoirs in
South Texas and at Pinedale, Wyoming. Drilling and completing
several wells simultaneously reduces costs. In late 2008, year
round drilling operations in Pinedale were approved following
a new environmental plan developed by Shell. Improvements to
technology and techniques in the past 15 years have helped us
reduce our well delivery cost by 40%.
During 2008 Shell also increased its acreage position in the
Haynesville shale gas play of north-west Louisiana. Four drilling
rigs were in operation at the end of 2008 with 10 wells producing
gas with encouraging initial flow rates.
In California, Shell has equity in the Aera operation (Shell
interest 51.8%) that operates some 15,000 wells producing
about 170,000 boe/d of heavy oil and gas, and accounting for
around 30% of the state’s production.
Shell continued research into the development of oil shale
resources in the Piceance Basin of north-west Colorado, and holds
three federal leases for future oil shale activities.
Shell also holds LNG import capacity rights of 4.6 mtpa at
regasification terminals in Maryland and Elba Island in Georgia. In
2008 construction continued on the expansion of the Elba Island
terminal where Shell will have 4.2 mtpa of the capacity rights.
The Perdido spar, US Gulf of Mexico
42 Shell Financial and Operational Information 2004–2008
Gulf of Mexico
Shell has been operating in the GoM for five decades. Our
operations there now provide some 70% of the Shell US oil and
gas production. We hold some 440 offshore leases and operate five
deep-water tension leg platforms along with a dozen other platforms
producing over 300,000 boe/d. Key producing fields are Auger,
Mars, Ram Powell, Ursa, Princess, Brutus, NaKika and Deimos.
Shell, with our partners, made significant progress in 2008 on the
Perdido project (Shell interest 35.4%) in the south-west GoM. The
floating spar was installed in 2,440 m water depth in August and we
set a world depth record for an undersea well completion of 2,850 m
at the satellite Silvertip Field. Drilling and production platforms
were placed on the spar in March 2009. The first production is
expected in early 2010, with a projected peak production of
130,000 boe/d.
A waterflood enhanced oil recovery project at the Ursa and Princess
fields started in 2008. It is expected to extend field life by 10 years
and add 30,000 boe/d of production. A new Mars A8 discovery
went into production within a few months from drilling through
the existing Mars platform.
In 2008 we added 23 blocks in the Gulf of Mexico through Lease
Sales 206, 207 and 224, and an additional 39 blocks in Lease Sale
208 held in March 2009.