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.

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  • 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 http://news.exxonmobil.com/press-release/exxonmobil-recogniz...

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