Oil & Gas Journal: Shell's Hofmeister discusses innovation's importance: “While he acknowledged that oil companies are making record profits (Shell recorded $110 billion in revenue in the U.S. alone in 2004), they are also turning some of this back into record investments.”: Posted Friday 21 October 2005

Offshore staff

(Houston)- According to John Hofmeister, President and Country Chair for Shell Oil in the U.S., although Shell and others have been "humbled by these storms," their planned initiatives will not be cancelled but merely delayed. Hofmeister addressed a large group of energy industry professionals at a luncheon in Houston recently.

While the severe damage and, in some cases disappearance, of offshore rigs in the aftermath of Hurricanes Katrina and Rita have been major setbacks for the industry, pipeline damage in GoM will take "months, not weeks" to repair, he said. This will inevitably hinder natural gas storage and manufacture of home heating oil for the upcoming winter months. Innovation and investment in the future are keys in getting the infrastructure back on its feet and preventing serious disruptions like this in the future, Hofmeister said.

Hofmeister stressed that innovation comes not only from technology, but also from marketing and sales initiatives across the whole spectrum of their product line. Technological innovations have come in the form of producing oil and gas from deepwater, high-pressure, high-temperature reservoirs. Further offshore innovations and investment in these types of assets will be necessary as the demand for energy continues to increase, he said. While he acknowledged that oil companies are making record profits (Shell recorded $110 billion in revenue in the U.S. alone in 2004), they are also turning some of this back into record investments.

Click here to return to ShellNews.net HOME PAGE