(WLDMC943) - Shell Offshore

Overview

Shell is a leading player in deep-water oil and gas production, particularly in the Gulf of Mexico (GoM) and other global locations. Their deep-water operations involve advanced technologies and innovative approaches to extract oil and gas from extreme depths.

Historical Context

Shell's involvement in deep-water oil production began over 40 years ago. A significant milestone was the Cognac platform in 1978, which was the first to produce oil in more than 1,000 feet of water.

Notable Projects

Vito Platform

• Located approximately 150 miles southeast of New Orleans, the Vito platform is one of Shell's newest offshore platforms.
• This project involves a floating production, storage, and offloading (FPSO) system, but unlike traditional FPSOs, Vito was designed to be smaller and simpler by pre-drilling wells using the Transocean Poseidon drill ship.
• The Poseidon can drill in waters over a mile deep and to depths of up to 40,000 feet, although the Vito project required drilling to about 30,000 feet.
• The platform is designed to be more cost-effective and efficient, reducing drilling time significantly.

Mars Field

• The Mars field, one of the largest in the Gulf of Mexico, started producing in 1996.
• It utilizes a Tension Leg Platform (TLP) and has been a highly profitable investment, with estimated annual net cash flow of $1.5 billion until 2027.
• The Mars field is an example of Shell's ability to develop reservoirs in deep water, with wells producing at rates of 10,000-20,000 barrels per day.

Technological Innovations

Drilling Technology

• Shell uses advanced drill ships like the Transocean Poseidon, which can drill 24/7 and is equipped with two derricks to prepare pipes while continuously drilling.
• The drilling process involves a large conductor pipe, bottom hole assembly, and multiple casings to shore up the borehole and ensure safety and stability.

Platform Design

• Shell's platforms are designed with efficiency and safety in mind. For example, the Vito platform was made smaller by pre-drilling wells, reducing the need for an on-board drilling rig.
• The use of TLPs, as seen in the Mars field, allows for stable and secure operations in deep waters.

Environmental and Regulatory Considerations

Low GHG Intensity

• Shell's U.S. Gulf of Mexico production is noted for being among the lowest in greenhouse gas (GHG) intensity globally among oil and gas producing members of the International Oil and Gas Producers (IOGP).

Storm Preparedness

• Shell has robust plans in place for hurricane and tropical storm preparedness to ensure the safety of operations and personnel.

Infrastructure and Logistics

Pipelines

• Shell has invested in new pipeline infrastructure, such as the Rome pipeline, which will transport crude oil from the Green Canyon block 19 pipeline hub platform to the Fourchon Junction facility on the Louisiana Gulf Coast. This pipeline is part of a larger network that includes the Canyon oil pipeline to support the Kaskida field development project.

Future Developments

Ongoing and Planned Projects

• Shell continues to develop new projects, such as the Whale platform, which follows a similar design to the Vito platform, focusing on cost and emission reductions.
• The company is also involved in other global deep-water projects, leveraging its expertise and technology to unlock new resources safely and efficiently.