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Shell Delivers Energy Through Innovation and Partnerships

John Barry, Shell’s Vice President – Technology & Production for Middle East and North Africa outlined Shell’s view of the importance of technology and partnerships for securing the energy future in the Middle East. Dr. Barry was speaking at The Kuwait Oil and Gas Summit & Exhibition, which is being held in Kuwait between 12 – 15 February 2012, sponsored by Shell for the second year running, and hosted by Kuwait Petroleum Corporation (KPC); Shell’s partner in Kuwait
Dr. John Barry, VP Technology & Production MENA, Shell on the speakers panel with (from left to righ

Dr. John Barry, VP Technology & Production MENA, Shell on the speakers panel with (from left to right) Sami F Al-Rushaid, Chairman & Managing Director, Kuwait Oil Company (KOC), Hashim Al-Rifaai, Chairman & Managing Director, Kuwait Gulf Oil Company (KGOC), and Xavier Préel, VP Middle East General Affairs, Total E&P Division

Speaking on technical aspects relating to gas, enhanced oil recovery (EOR), and related technology, Dr Barry said: “At Shell we invest over one billion US dollars a year in researching and developing new technology to improve our methods of extraction.  Recognize the world’s remarkable need for various gas sources and the accelerating expansion of the liquefied natural gas (LNG) market, the world needs to take note of the recent rapid increase in the estimates of natural gas sources. Thanks to Shell’s advanced technology, vast amounts of natural gas which was previously uneconomical to extract, can now be tapped profitably and safely.” 

“Shell’s investment in new technology applies equally to oil extraction.  In the past, oil producers typically only managed to recover about a third of a reservoir’s oil using traditional methods.  By injecting steam, chemicals or gas into a reservoir - a process called enhanced oil recovery, or EOR, we can now increase recovery by an average of around 10%.  This means that EOR could unlock a further 300 billion barrels, which is equal to 10 years’ global production at today’s levels. 

Dr. John Barry, Technology & Production MENA during his speech.

Dr. John Barry, VP Technology & Production MENA during his speech.

“Although EOR production now accounts for only 4% of world oil production, it could potentially rise to 20% by 2030.  This highlights the importance of choosing the right technique for the reservoir, which will often require tailor-made and integrated solutions, from reservoir imaging to surveillance and smart operational execution.

“In Kuwait, Shell and its partner Kuwait Petroleum Cooperation (KPC), share a tradition as energy pioneers. In 2010 we joined forces with KPC’s subsidiary, KOC, to develop the Jurassic gas fields, with the aim to enhance domestic gas supplies and reduce the need for Liquefied Natural Gas (LNG) imports. Because of the fields’ complexity, a high level of new technology is needed to bring them on stream.  By working together, KOC and Shell have developed new strategies that utilize both companies’ technologies to support the gas growth plans.

During the conference, Ahmad Atallah, Kuwait Shell Chairman and Managing Director paid tribute to the importance of sharing technology and developing local partnerships.  He said: “Shell has a long track record of successfully managing complex gas projects and is recognised as a leading gas company. Our partnership with KOC has enabled us to find groundbreaking solutions for the challenges faced through sharing our experiences in gas, and utilizing this in the development of new technology.  Shell has been present in the region for many years and the Jurassic Gas Project is one example of the excellent relationships we have developed.  The recent Memorandum of Understanding, MoU, signed by Shell and Kuwait Petroleum Corporation (KPC) in 2011, forms a strong foundation for future shared projects in gas and oil extraction.

“Shell is committed to the region and the long term development of its energy resources.  This includes a commitment to sharing knowledge and best practice, and helping to build local expertise and skills within Kuwait.  The recent establishment of the Shell Natural Gas Chair at Kuwait University, is one of the ways in which the company is investing in tomorrow’s talent so that Kuwait can fully realize the potential of its extensive energy assets.”