Shell boosts production target

Royal Dutch Shell set out “ambitious” production targets today as it embarks on a fresh wave of growth to meet soaring demand from emerging markets.

The oil and gas giant plans to invest $100bn (€71.87bn) on new projects over the next four years, including new projects in Qatar and Canada this year.

Shell set a target of 3.7 million barrels of oil equivalent per day for 2014, an increase of 12% on 2010 levels, which it claims is among the highest growth rates in the sector.

Chief executive Peter Voser said in the company’s annual strategy update: “We have made good progress in 2010. Our profitability is improving and we are on track for our growth targets. There is more to come from Shell.”

The company has 20 new projects under construction, which will add more than 800,000 barrels of oil equivalent per day, putting it on course to meet its target of 3.5 million barrels per day for 2012.

It plans to make final investment decisions on some 10 new projects over the next two years in Australia, Malaysia, Canada and the Gulf of Mexico.

In addition, it has more than 30 new projects on the drawing board for the period to 2020 as part of “an ambitious phase of new growth investment”.

Shell said it is on track to achieve its strategic targets by 2012, including a 50% to 80% increase in cashflow from operations between 2009 and 2012, following a “strong all-round performance in 2010”.

The Anglo-Dutch company nearly doubled its profits to $18.6bn (€13.35bn) in 2010 thanks to higher oil prices.

The results contrasted with those of its rival BP, which recorded its first annual loss for nearly two decades of $4.9bn (€3.5bn) due to clean up costs following the Deepwater Horizon disaster in the Gulf of Mexico.