Shell is estimating the US could be self-sufficient in energy within the next 20 years as it starts to reap the benefits of a huge increase in gas production.
The issue is of critical importance with recent Iranian sabre-rattling in the Gulf leading Western countries to examine their dependence on oil supplies – and their transit through the Straits of Hormuz.
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It is thought around 20% of the world’s oil passes through the narrow Strait, but Iran has threatened to close access to it, prompting the US to send the aircraft carrier USS Abraham Lincoln to the region yesterday (14 February) in a show of strength.
In the Gulf, Shell has collaborated with Qatar on the colossal Pearl gas to liquid (GTL) project in a US$20bn investment and believes the US could start to see the rewards of its own alternative energy development to oil.
“The US has always wanted to reduce its dependence on imported oil,” Shell EVP global commercial Mark Gainsborough told just-auto at the company’s huge Amsterdam research centre. “It is dawning on the Obama administration the increase in gas [production] could allow them to be [self] sufficient in time. On a net basis, they could be independent in 20 years.”
Gainsborough conceded the region had “issues” occasionally, but saw no problem with its enormous Pearl project, lying as it does just off the Qatari coast.
“Qatar is an extremely stable State and a very businesslike country,” he said. “We have no particular concerns about Qatar. It is in a region where issues are from time to time.”
Shell is also increasing its upstream gas development in the US and is evaluating its Arctic region in a programme that will see huge amounts of money invested.
“Our net capital investment will be more than US$20bn per annum and [we] have relatively low gearing,” said Gainsborough. “We can afford it. It is not our plan to stay where we are.
“We want to produce more oil and gas in the future – we have got a great pipeline of upstream and downstream.”
