Shell plans to cut costs while boosting production growth

Royal Dutch Shell Plc has pledged extra cost cuts in refining and marketing costs as it seeks to accelerate production growth through 2014.

The company plans to reduce costs by US$ 1 billion by the end of 2012. It reiterated a target to increase oil and gas production to 3.7 million bpd of oil equivalent in 2014, an increase of 12% from 2010.

Shell plans to invest US$ 100 billion in projects in four years through 2014, to maintain output growth until 2020. The company is examining plans to tap 10 billion barrels of oil equivalent resources and is assessing 30 projects with production potential of more than 1 million bpd.

The company is also developing 20 new projects to add over 800 000 barrels of oil equivalent a day to raise daily output to 3.5 million barrels in 2012, a 6% gain from 2010.

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