The Anglo Dutch oil giant Royal Dutch Shell announced on Tuesday that it plans to spend up to $100 billion in the next four years to increase its production capacity.
Updating investors about its plans till 2020, Shell said it has 30 new projects lined up as part of its strategy.
Shell is currently in the first year of its three years business restructuring strategy and the company has already sold assets – particularly of marketing and refining operations and focused more on production. Its weak refining margins in the fourth quarter and poor performance had disappointed the markets in February.
Shell Chief Executive Peter Voser said: “We have made good progress in 2010. Our profitability is improving and we are on track for our growth targets”.
Shell has set a daily production target of 3.7 million barrels of oil equivalent, a jump of 12 percent over 2010 levels.
Shell expects an overall improvement in the natural gas and oil refining and marketing environment and hopes oil price to hover around $60-$80 a barrel. Based on its market forecasts, it hopes to increase its cash flow by 50-80 percent between 2009 and 2012.
Shell hopes to raise $5 billion from asset sales in 2011. It has already invested $100 billion in the last five years in exploration and production, while it has raised $30 billion in the same period from asset sales.