The director of operations for the Permian Shell at Royal Dutch Shell said on Wednesday that the company, which plans to spend billions of dollars on shale extraction projects, increased production in the largest rocky field in the United States to 250 thousand barrels per day in December.
Speaking at the Argus Summit for the Americas in Houston, Prince Gerges, Vice President of Permian Assets in Shell, said that Shell intends to spend about three billion dollars annually over the next five years on shale oil projects. The company's production from the Permian Basin rose more than 100,000 bpd last year.
Shell and its major competitors, Exxon Mobil, Chevron and BP, are spending billions on the Permian Basin in Texas and New Mexico. The companies view shale oil as a quick-profit asset and complementary to projects such as deep-water wells that take years to start production.
Gerges said that the Permian basin contains a high-quality stock - called "one level" - that can be used for thirty years, and that it will remain a major driver of American oil growth. But he added that the industry faces challenges in the region, such as excessive burning of natural gas, inadequate infrastructure and even “investor sentiment today”.
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