Innovation

New technology brings opportunities to Māui

We are working to help meet the world’s rising demand for energy. Advanced technology is helping us unlock new energy resources and squeeze more from existing oil and gas fields.

Global demand for energy has grown ten-fold over the past 100 years and is expected to more than double again by 2050 from its level in 2000. Our challenge, and great opportunity, is to find ways to meet the energy needs of future generations at a much reduced social and environmental cost.

We are working in three areas to find new energy solutions.

Technology
New technology is opening up new opportunities. In New Zealand it is allowing us to make the most of our existing assets and tap pockets of gas that would not have been considered viable just 10 years ago.

In Taranaki, the Māui joint venture partners are targeting gas that was bypassed during the normal production phase. The technology makes it possible to drill in any direction and at any angle, tapping areas which till now have been out of reach.

Onshore, the Kapuni joint venture partners are also using leading edge technology to drill new production wells, the first in 10 years. This is extending the life of this landmark gas field which has been producing continuously for more than 40 years.

Natural gas
Natural gas, the cleanest burning fossil fuel, is a logical bridge to a more renewable energy future. With recent advances in technology, it is abundant, environmentally acceptable and affordable when compared with other sources of electricity.

Natural gas offers the quickest and cheapest way to cut global CO₂ emissions from the power sector and is an important component of a sustainable global energy mix.
Even in New Zealand, with our high proportion of renewable energy generation, gas will continue to be an important component for a clean, affordable and secure energy supply.

Partnerships
By working alongside others we can unlock opportunities and find solutions that are not available to individual players.

Shell has been partnering with national and international oil and gas companies in New Zealand since 1955. These partnerships allow us to make the most of technical knowledge and project management, share risk and ultimately bring higher levels of investment for the benefit of all New Zealanders.

Building strong relationships with local communities

We are constantly looking for innovative ways to limit the impact of our operations on people and the environment, and bring benefits to them.

Worldwide we are using advanced technologies such as carbon capture and storage, and coal gasification to help limit global CO₂ emissions and local pollution. In New Zealand we are meeting our environmental obligations under the Emissions Trading Scheme and investing in the communities in which we operate.

Carbon capture and storage
Carbon capture and storage (CCS) could be removing over 10 billion tonnes of CO₂ emissions a year by 2050 if rapid deployment starts this decade, according to the International Energy Agency (IEA).

CCS involves capturing CO₂ from major industrial plants such as power stations, refineries and chemical plants and storing it safely underground. The technology is already in use today.

But with a wide range of geological variations around the world a number of technical challenges remain to ensure the safe, large-scale and long-term underground storage of CO₂. We are involved in a number of demonstration projects around the world to advance CCS and we have taken firm steps towards several major CCS projects.

Coal gasification
Coal is the world’s cheapest and most abundant fossil fuel. But burning it releases greenhouse gases, toxic heavy metals, and sulphur, a major cause of acid rain.

Our technology can now turn virtually any coal – even the lowest, dirtiest grades – into synthesis gas, a mixture of hydrogen and carbon monoxide that burns as cleanly as natural gas.

Emissions Trading Scheme
We are part of the New Zealand Emissions Trading Scheme (ETS) which puts a price on greenhouse gases as an incentive to reduce emissions.

Under the ETS, we buy and surrender emission units to cover the emissions associated with the natural gas we produce each year. We surrendered our first units to the New Zealand government in May 2011 to meet out environmental obligations.

A partner in the community
We are committed to building strong relationships with our near neighbours, the communities in which we do business and the national economy in which we invest. We are involved in a range of educational, environmental and social activities that are closely aligned with our business and values.

Shaping the future of our energy through innovation

Bright ideas from our people and partners have sparked some ground-breaking technologies. We invite innovators to tackle the problems of energy production and help turn their best ideas into reality.

Over the coming decades the need for creative solutions will grow as society seeks ways to meet increasing demand for energy with less environmental impact. We work with partners in universities and other companies to better understand these challenges and find ways to overcome them.

We have a global network of technical centres, located close to our main markets and production sites. In Houston, USA, and Amsterdam and Rijswijk in the Netherlands, our centres focus on innovation: developing new technologies and improving existing ones.

Elsewhere – including in the UK, Canada, France, Germany, India, Norway, Oman, Qatar and Singapore – our centres focus on product development, marketing support and providing specific technical assistance to regional operations.

For issues that relate to all our businesses and operations, such as CO₂ solutions or oil conversion processes, our technical teams integrate to share knowledge and work efficiently. Our centres can link up through 3D virtual reality systems to simultaneously work on the design of wells.

In 2010 we spent $1 billion in research and development for technologies that will be needed to produce cleaner energy and more efficient fuels.

Shell Eco-marathon, Houston, USA, 2010

The number of cars on the road is expected to triple by 2050. A variety of fuels and techniques will be needed to meet the growing demand for mobility while limiting CO₂ emissions.

These will be influenced by government policies, advances in technology, cost and environmental concerns. At Shell we are finding innovative ways to help move the growing number of people and goods efficiently.

Our “Smarter Mobility” programme includes developing more energy-efficient fuels and lubricants; investing in lower carbon alternatives; offering drivers fuel-saving tips; working in technical partnerships; and helping to reduce CO₂ emissions from road-building.