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.
The company has its corporate headquarters in Texas. It produces oil and gas in the Gulf of Mexico, heavy oil in California and primarily tight gas and liquid hydrocarbons in Louisiana, Pennsylvania, Texas, and Wyoming.
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 2013 the US accounted for 16% 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. In 2012 Shell Oil was operating 13 manned platforms in the Gulf of Mexico.
On the downstream side of the business, in 2013 Shell Oil announced plans to use North American natural gas to provide an innovative and cost-effective fuel for its commercial customers. It plans to bring liquefied natural gas (LNG) fuel one step closer for its marine and heavy-duty on-road customers in North America by taking a final investment decision on two small-scale liquefaction units. These two units will form the basis of two new LNG transport corridors in the Great Lakes and Gulf Coast regions. (This decision follows an investment decision in 2011 on a similar corridor in Alberta, Canada). Shell Oil is also working to use natural gas as a fuel in its own operations.
That year Shell US Gas & Power LLC, and Kinder Morgan unit Southern Liquefaction Company, announced their intent to form a limited liability company to develop a natural gas liquefaction plant in two phases at Southern LNG Company, LLC’s existing Elba Island LNG Terminal, near Savannah, Georgia. This project will facilitate the exporting of the abundant natural gas resources in the US.
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.
Mergers and Acquisitions
To build a leading portfolio of shale assets rich in oil and natural gas liquids, in 2012 Royal Dutch Shell acquired acreage in Texas from Chesapeake Energy. The $1.9 billion deal provides both existing production and near-term growth potential from a proven resource, as well as promising opportunities for expansion.