Abstract: Vision and Reality - Realizing the Commercial Prospects for Deep Water Production

Watts, Phil - Shell International Limited

In the 1970?s Shell publicity posters likened North Sea development to space exploration. Recent deep water achievements - particularly In Brazil and the Gulf of Mexico - make this comparison even more apt today. Like space explorers we are excited by a vision of expanding possibilities, but as commercial enterprises, our vision must be focused on technical and economic realities.

Despite the rapid advances of recent years we shouldn?t believe that development In 1,000 meters of water is now standard. Each project is different and presents new challenges - in an environment that is physically, technically and economically unforgiving. In Shell we see great prospects In deep water and - over 30 years - have committed more then others to pursuing them. But we know it will take all our skills and accumulated experience to realize their commercial value.

Deep water progress requires integrating wide-ranging advances in many disciplines - geological models, subsurface definition, metocean monitoring, drilling capabilities, well technology, subsea and floating systems, pipelines, project management and operating standards. It depends on a relentless drive for innovative ways of economically exploring new possibilities.

Our vision starts with the political changes which are opening new offshore areas for exploration, making possible new partnerships, A new world-class hydrocarbon province is being defined off Western Africa, There is the technological basis for going deeper and new technologies are being investigated. But there are also major challenges - cycle times, reliability, flow assurance, and remote intervention. There is also the economic necessity of resilience to periods - perhaps sustained - of low prices.

In Shell we continue to look forward with confidence - based on our record of achievement, portfolio of projects, and global exploration effort. A separate organization, Shell International Deepwater Services, has been created to ensure our unique deep water experience is utilized effectively around the world. We remain committed to technological development. Above all, we have the people with the skills and commercial drive to make it happen.

AAPG Search and Discovery Article #90933©1998 ABGP/AAPG International Conference and Exhibition, Rio de Janeiro, Brazil