P&T is responsible for delivering capital projects. These can involve oil and gas fields, transnational pipelines, crude-oil refineries, natural-gas liquefaction trains or petrochemical plants. Some projects entail constructing entirely new facilities, some involve expansions of existing facilities, and some may require outdated facilities to be decommissioned and dismantled. But in every case, we constantly seek opportunities to improve efficiency and reduce costs no matter the scale or scope of the project. (See In Focus)
These efforts, which have been intensified in recent years because of the challenging market conditions, are paying off. Compared to a few years ago, we can create more value for every dollar spent. As at the end of 2017, we have delivered ca. $10 billion in capital-efficiency savings, contributing to a 35% reduction in Shell’s average unit field-development cost (UDC) over the same period. We are working to further reduce the UDC over the next few years.