“Meeting that growth in demand, some 18 million barrels a day from this part of the world, will be a challenge for us all, whether we are energy producers, policy makers or investors,” Banister said.
He predicted hydrocarbons would remain the backbone of world energy supply for next decades to come.
“Shell believes there are significant oil and gas resources still to be found and produced, from Russia, to Angola, to Brazil,” he said.
“However, these resources are increasingly being discovered in challenging conditions – deeper water, or in more difficult climates or in more difficult geology. The scale of the investment required to meet global energy demand is immense.”
The IEA estimated the total investment needed in energy infrastructure to be US$16 trillion to 2030, a third of which would be needed in Asia.
Banister painted a positive picture for Shell in New Zealand, saying previously uneconomic opportunities would become attractive because of high oil prices, increasing domestic gas prices and improving technology.
If New Zealand continued its economic growth, gas demand should increase by about 2% per annum, or by almost a third by 2020 to about 200 petajoules a year, he said.
Technological improvements, including some world firsts with the near-shore Taranaki Pohokura gas-condensate project, would allow more hydrocarbons to be recovered, including those remote from existing infrastructure.
Shell expertise had seen world firsts recorded on the deviated onshore-offshore Pohokura wells – the world’s longest extended reach wells, going more than 7km offshore.
Multi-lateral wells and 4D seismic were among other tools being used to maximise recovery in New Zealand and elsewhere. In New Zealand’s offshore Maui field, two deviated Ihi wells were currently being drilled.
“Shell is focused on maximising recovery from Pohokura,” he said.
“It is an important part of our Asia-Pacific portfolio and we monitor Pohokura just as we do Sakhalin,” Banister said, referring to the Sakhalin project off Eastern Russia.
Shell is a 48% partner in Pohokura, along with OMV and Todd Energy (26% each). First gas from the 700 bcf field is due late this year.
