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Global demand for available oil has soared across the globe. While oil resources are known to be in the ground, they cannot be produced as quickly as the increase in demand.
Workers checking pipe on Ormen Lange gas field
Developing nations such as China and India are entering more energy-intensive phases in their growth. The number of cars in China, for instance, more than doubled between 2000 and 2006. This kind of rapid increase in global demand on available supply causes prices to go up worldwide. In its 2010 world outlook, the International Energy Agency predicted oil will remain the dominant fuel in the primary energy mix to 2035.
In fact, the world’s demand for oil has increased sharply in recent years, from 77 million barrels per day in 2001 to nearly 85 million barrels per day in 2009. The U.S. Energy Information Administration has said it expects world liquid fuel1 consumption to grow to 92.1 million barrels per day in 2020, 103.9 million barrels per day in 2030, and 110.6 million barrels per day in 2035.
Shell has some 11 billion barrels of oil, or their equivalent, of new oil and gas resources under development. Approximately 80% of our capital investment in 2010 was in Upstream (exploration and production). In 2011, and through 2014, we expect our net capital investment to be $25-$27 billion/year.
While oil will still be an important cornerstone of energy, our commitment to technology and innovation continues to be at the core of our strategy. We believe advanced and alternative fuels will be telling factors in the growth of our business.
1 As defined by the U.S. Energy Information Administration , liquid fuels and other petroleum include petroleum-derived fuels and non-petroleum-derived liquid fuels, such as ethanol and biodiesel, coal-to-liquids, and gas-to-liquids. Petroleum coke, which is a solid, is included. Also included are natural gas liquids, crude oil consumed as a fuel, and liquid hydrogen.