Shell goes ahead with giant Gulf of Mexico field after cost cuts
Shell goes ahead with giant Gulf of Mexico field after cost cuts
Markets | Wed Jul 1, 2015
* Appomattox project set to start production by end of decade
* Will be Shell’s largest platform in the region (Adds details, quotes, share price)
By Ron Bousso
LONDON, July 1 (Reuters) – Royal Dutch Shell has given the green light for the development of its largest platform in the Gulf of Mexico after making steep cost cuts which made the deep water project economical despite low oil prices.
The decision to pour billions of dollars into the Appomattox project comes as companies have scrapped around $200 billion of mega-projects in the wake of the sharp decline in oil prices over the past year.
Shell has operated in the Gulf of Mexico for over 60 years. The region contributes about 17 percent of total U.S. crude oil production according to the Energy Information Administration and was the location in 2010 of the worst offshore oil spill in U.S. history, involving BP’s Deepwater Horizon well.
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