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(Reuters) – Royal Dutch Shell’s output in the top U.S. shale field reached 250,000 barrels per day in December, the company’s Permian head said on Wednesday.
Shell (LON:) plans to spend about $3 billion per year for the next five years on shale projects, said Amir Gerges, vice president of Permian assets for Shell, at the Argus Americas Crude Summit in Houston.
“We continue to ramp up our production from our core acreage,” Gerges said.
Shell and rival oil majors Exxon Mobil (NYSE:), Chevron (NYSE:) and BP (LON:) are ramping up production in the Permian Basin of Texas and New Mexico, the largest U.S. shale field.
The field will continue to be the heart of U.S. oil growth, Gerges said, adding the industry faces challenges in the region, ranging from too much flaring to inadequate infrastructure and “even today’s investor sentiments.”
Shell has previously indicated it might look for a way to expand its presence in the Permian, but during last week’s earnings call, Chief Executive Ben van Beurden indicated the timing is not right for an acquisition.
“I think anything inorganic would not be the right thing to do,” van Beurden said.
Oil and gas companies of all sizes have been under pressure to produce more free cash and return it to investors through share buybacks and dividends.
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