Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Can Royal Dutch Shell plc's Innovation Save the Oil Industry Billions?

Big Oil needs to stop complaining about all the money they spend on exploration and development, because a large part of it is their fault. The entire industry spends billions on individual projects with unique designs that cannot be replicated at other projects, and they all try to take on huge projects all at once. Yet there is one investment Royal Dutch Shell (NYSE: RDS-A  ) (NYSE: RDS-B  ) has made that might help alleviate this problem: floating LNG liquefaction facilities. 

By eschewing the traditional method of developing an LNG terminal on land, Shell has potentially opened the door to save the industry billions through standardized designs, smaller-scale projects implemented in stages, and mobility. Find out how Floating LNG makes these elements possible and why other big players like Chevron (NYSE: CVX  ) and Total (NYSE: TOT  ) should follow Shell's lead on these types of projects.

More from The Motley Fool
Oil production from places all over the world is shifting power away from OPEC. Much of that movement has been thanks to major strides in oil and gas drilling technology, and one behind-the-scenes energy giant is at the epicenter of this movement. Warren Buffett is so confident in this company's power-shifting business model, he just loaded up on 
8.8 million shares. An exclusive Motley Fool report reveals this game-changing company we're calling "OPEC's Worst Nightmare." Simply click here, and we'll give you free access to this valuable investor resource.

Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 15, 2014, at 6:39 PM, stockanal45 wrote:

    Another lure to reveal a speculative stock which will end up like CLNE or WPRT.

  • Report this Comment On March 16, 2014, at 5:57 AM, amvet wrote:

    Tyler, I doubt that you know the oil business better than a herd of oil geologists and engineers and the technical staff of Schlumberger.

    The use of floating LNG facilities may well be useful, at least until a storm destroys one. But the main problem is not the mistakes of major oil companies it is geology. In 2013 each of these companies spent more and produced less than in 2012: BP, Chevron, Conoco, Eni, Exxon, Petrobras, Shell, Statoil, and Total. There were also others and some shale NG producers that reported making a profit during the year but increased their debt load more than the reported profit.

    Take a look at the EIA graph of global oil production compared to global oil consumption and see that in the three years most quarters showed an oil shortage.

  • Report this Comment On March 17, 2014, at 6:05 PM, uffdatx wrote:

    Design One, Build Multiple with incremental improvements from lessons learned in previous projects is what ExxonMobil has been doing since they created a separate development company several years ago. Their Angola Block 15 development is an example of this. See

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2875689, ~/Articles/ArticleHandler.aspx, 9/3/2015 7:34:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tyler Crowe

Energy and materials columnist for

Today's Market

updated Moments ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:00 PM
RDS-A $50.80 Down -0.18 -0.35%
Royal Dutch Shell… CAPS Rating: ****
RDS-B $50.79 Down -0.38 -0.74%
Royal Dutch Shell CAPS Rating: ****
CVX $78.26 Up +0.20 +0.26%
Chevron CAPS Rating: ****
TOT $45.53 Down -0.03 -0.07%
Total (ADR) CAPS Rating: *****
XOM $73.79 Up +0.56 +0.76%
ExxonMobil Corp CAPS Rating: ****