Yahoo Finance Shell's (SHEL) Vito Deep-Water Project Begins Production
Shell plc SHEL has recently announced the start of production at Vito — the company’s first deep-water platform in the Gulf of Mexico. This project has been designed to produce up to 100,000 barrels of oil equivalent per day, making a significant contribution to Shell's overall production capacity. The Vito project demonstrates Shell's continued investment in deep-water development and the Gulf of Mexico’s potential as a major energy source.
The Vito project has incorporated several technological advancements, including a new generation of subsea pumps that can operate in extreme temperatures and pressures. There are also advanced automation systems on the floating production unit that allow remote monitoring and control of the production facilities.
According to Shell, the Vito project is expected to have a productive life of at least 25 years, a significant investment in the future of energy. Shell has also implemented measures to reduce the project's carbon footprint, such as using a subsea injection system that will re-inject gas into the reservoir to enhance oil recovery and reduce greenhouse gas emissions.
The Vito project is also expected to create hundreds of jobs during the construction phase and thousands of jobs during the operational phase. It will also generate significant revenue for the local economy, and the oil and gas industry as a whole.
The Vito deep-water development is a notable milestone for the industry. It showcases the potential of deep-water exploration and the importance of investing in technological advancements to reduce environmental impact and maximize efficiency. Shell's Vito deep-water project is an excellent example of the company's commitment to meeting the world's energy demands while striving towards net-zero emissions by 2050.
The project showcases Shell's deep-water expertise, and its success will generate greater value from the Gulf of Mexico while maintaining low greenhouse gas intensity.
Shell and its co-owner of the Vito development have reduced CO2 emissions by 80% over its lifetime, and its cost by more than 70%. Shell's Whale project is another offshore oil and gas development located in the Gulf of Mexico. This project will replicate Vito's design and involve exploring and producing oil and natural gas from several reservoirs deep beneath the ocean floor.
Shell's Powering Progress strategy will focus on investing in lower-carbon energy solutions and high-return Upstream investments. As major companies like Shell continue to invest in these types of projects, the industry will likely see further developments in deep-water drilling and exploration.
Shell, a multinational energy and petrochemical company headquartered in The Hague, Netherlands. It engages in the exploration, extraction, marketing, and transportation of crude oil, natural gas, and natural gas liquids, and also produces gas-to-liquids fuels and other products.
Zacks Rank and Key Picks
Currently, Shell carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranking stocks like ProPetro Holding PUMP sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP) and Energy Transfer ET both holding a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a forward P/E ratio of 4.49. In comparison, its industry has an average forward P/E of 25.60, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.04 billion. Its shares have declined 19.9% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.43 billion. ET delivered an average earnings surprise of 28.7% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. In comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne: Helmerich & Payne is valued at around $4.36 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 34.7%.
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