Shell Oil doesn't shilly-shally around as it explores for, produces, and markets oil, and natural gas, and produces and markets chemicals. The company's Shell Exploration & Production unit focuses its exploration on the deepwater plays in the Gulf of Mexico. Shell Oil partners with Saudi Aramco in a US refining and marketing venture (Motiva) and owns Motiva's sister company Shell Oil Products US. Shell Oil also produces petrochemicals (Shell Chemical) and liquefied natural gas (Shell US Gas & Power) and markets natural gas and electricity. Shell Oil's parent, Royal Dutch Shell, vies with Exxon Mobil) to be the world's #1 integrated oil company in terms of revenues.
Shell Oil is the flagship of Royal Dutch Shell's US operations, and conducts activities through subsidiaries and affiliates. Motiva combines much of its parent's US refining and marketing operations along the Gulf Coast and the East Coast. Shell operates refining and marketing businesses in the West and Midwest as Shell Oil Products US. Other downstream operations include the manufacture and marketing of lubricants, alternative energies, carbon dioxide, and chemicals. Shell Oil has extensive upstream activities (both onshore and offshore) across the US.
Sales and Marketing
There are 14,000 Shell-branded gas stations in the US. Shell Oil Products US has a network of about 6,000 branded gasoline stations in the West. Motiva refines and markets branded products through about 8,000 Shell-branded stations in the Eastern and Southern US.
In 2012 the US accounted for 19.6% of Royal Dutch Shell's total revenues.
Traditionally, the Gulf of Mexico produces about 15% of Royal Dutch Shell's worldwide production. Shell Oil operates the Perdido Development, the world's deepest offshore drilling and production facility, located in about 8,000 ft. of water in the Gulf of Mexico.
The BP rig disaster in the Gulf led to the government placing a six-month moratorium on deepwater drilling, forcing Shell Oil to idle seven rigs operating in the Gulf, hurting Shell Oil's production output and financial performance for the year. With the moratorium lifted, in 2011 Shell Oil affiliate Shell Offshore became the first company to get a permit for new deepwater drilling activities in the Gulf of Mexico. In 2012 Shell Oil was operating 13 manned platforms in the Gulf of Mexico.
On the downstream side, in 2013 Penske and Shell Oil announced a multi-year extension of their ongoing North American alliance. Shell Oil and Pennzoil will continue sponsoring Penske Racing entries in the NASCAR Sprint Cup Series and the IZOD IndyCar Series and continue to be the preferred supplier of fuels, lubricants, and related products to Penske. This alliance allows Shell Oil to expand within the motorsports segment and branch out into other business areas.
Pushing innovation by providing a cleaner fuel alternative to gasoline, in 2012 Shell opened a demonstration hydrogen fuel station in Newport Beach, California.
Shell Oil is a regional unit of Royal Dutch Shell.