ROYAL Dutch Shell’s chief executive yesterday declared the end of low cost oil and gas, warning that companies were entering a world where finding hydrocarbons was going to be “more complex”.
Peter Voser was speaking as the company revealed a 77 per cent rise in second quarter profits, fuelled by higher oil prices and the first deliveries from its projects in Canada and Qatar.
The energy giant reported second quarter earnings of $8bn (£4.9bn) on a current cost of supplies basis, up from $4.5bn in the same period last year. Group revenues jumped to $121.26bn, compared with $90.57bn in 2010.
Oil and gas production dropped slightly because of its sale of a stake in a deepwater Brazilian project earlier this month.
Excluding divestments, the group’s volumes increased by two per cent, lifted by two new projects in Qatar and the expansion of its Canadian oil sands operation. Together they are expected to contribute over 400,000 barrels of oil equivalent per day (boepd) at peak production.
Voser confirmed that the group was in ongoing talks with Russia’s state-owned oil company Rosneft – the recent venture target of BP – for opportunities in and outside Russia.