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:TTE) should follow Shell's lead on these types of projects.