Shell official: Innovation, cooperation key to future energy success

A combination of innovation and cooperation will be necessary to meet the world’s future energy needs, a Shell Downstream Inc. official forecast. “We’ll need partnerships,” said Peggy Montana, executive vice-president for supply and distribution at the Royal Dutch Shell PLC subsidiary. “No single organization, company, or government can meet the challenges that lie ahead.”

The global population keeps growing amid increased prosperity in developing countries, Montana told attendees at Deloitte’s 2013 Washington Energy Conference at nearby National Harbor, Md., on May 21. The world’s future energy needs will put more pressure on water, energy, and food resources, and coordination and collaboration will be essential, she maintained. Addressing global climate change also will be critical, she added.

“The energy industry has a fine track record of breaking through seemingly hard technological barriers,” Montana said. “However the future unfolds, I believe fresh thinking fueled by human ingenuity will be needed.”

That inevitably will require more alternative and renewable energy sources, she said, adding, “Natural gas can serve as their backbone by addressing their intermittency.”

Technology is helping Shell increase its gas development worldwide, she said. Montana said the multinational oil, gas, and chemical company believes LNG can become a transportation fuel and recently signed an agreement with Swedish truck, auto, and bus manufacturer Volvo.

It launched the first 100% LNG-fueled barge 2 months ago on the Rhine River, and is developing floating LNG terminals to produce gas far offshore, liquefy it, and load it onto tankers, she said.

“We see [LNG] moving pretty quickly as a transportation fuel, particularly for commercial truck fleets,” Montana said. “We expect to see LNG refueling corridors developed along major transportation routes, and centralized compressed gas refueling continued to grow among local fleets.”

Innovations also will be required downstream, she continued. “We’ll have to retool refineries to handle lighter tight oil as well as address the changing shape of the barrel. Gasoline demand is starting to fall, while distillate demand is taking off. But the US-Canadian refining sector will benefit as the North American crude oil supply outlook moves away from imports,” she said.

She said she also expects innovative changes to continue upstream, “but they’ll be more incremental than revolutionary.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Rockefeller bill would expand carbon dioxide EOR tax credits

05/05/2014 US Sen. John D. Rockefeller IV (D-W.Va.) introduced legislation that would increase tax credits for using carbon dioxide in enhanced oil recovery, ...

DOE to establish Northeastern gasoline reserve at two sites

05/05/2014 The US Department of Energy will establish a Northeastern gasoline reserve at two locations near New York Harbor and in northern New England to pro...

OTC: Ocean-bottom seismic improves resolution for offshore subsurface

05/05/2014 Streamer technology is not new, however, it has gone through many advances within the last 30 years. In 1980, 120 channels were considered advanced...

Oxy reports decrease in US, worldwide 1Q production

05/05/2014 Occidental Petroleum Corp. reported that its oil and gas production volumes in the first quarter averaged 745,000 boe/d, down from 763,000 boe/d in...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected