Shell pins upstream hopes on unconventional plays

Output to rise by 6% this year; capex $100bn over next three years

SHELL is turning to unconventional gas to help it deliver increased production until 2020. The supermajor has unveiled an output target of 3.5m barrels of oil equivalent a day (boe/d) for 2012, a 6% rise on last year. In a strategy update unveiled this week, chief executive Peter Voser said Shell has set aside $100bn for capital expenditure in the 2011-14 period alone. While the firm is on track to deliver its 2012 targets, Voser said further cuts to the troubled refining and marketing arms will come this year, as Shell focuses on boosting output. He added that a large proportion of Shell’s planned production growth will come from its portfolio of unconventional assets, possibly from the inv