Following the BG acquisition in 2016, Shell is in a generational shift in strategy. It is transitioning from emphasising volume growth to being unequivocally driven by shareholder returns. Integration of BG is allowing it to rationalise the combined acreage and high-grade opportunities to develop a world-class exploration portfolio. Prior to BG, Shell's portfolio was already differentiated by its breadth and diversity. It included incremental potential, new plays in producing 'heartland' basins and high-impact frontier opportunities. BG added acreage and assets in all of these themes. Shell has now renewed focus on capital discipline, and is making swift progress on a planned disposal programme of up to US$30 bn. Its total resource add from exploration over the last decade was 13.6 bnboe. Much of the conventional resource will be challenging to commercialise, but Shell's refocus on low breakeven incremental prospects around existing production hubs is resulting in improved returns.
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Affected by supply and demand, the economy of individual countries and technological breakthroughs, oil and gas exploration is an industry in constant motion. The high costs of finding and developing new oil and gas fields that can be commercially developed has created a challenging atmosphere, with explorers increasingly seeing low returns, low value and slow progress.
This Exploration Summary report quantifies the company's exploration volume and value performance over the past 10 years, and reviews its outlook for future success.
Businesses can use this report to get a detailed analysis of this company, what exploration areas they're involved in, what wells to watch and how well placed they are. It will help you understand company performance and shows how the best explorers have achieved their success.
Wood Mackenzie benchmarks exploration results for over 40 companies. Our analysts provide accurate information on the cost of exploration compared to the value of discoveries so that you can develop profitable strategies. We are the established global industry standard for oil and gas exploration performance.
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Company report | Aug 2017
Shell oil and gas exploration summary
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