*(Focus: 1970s-Era Infrastructure, CO₂ Reduction, and Circular Hydrocarbon Use)*
1. Assessment of 1970s-Era Assets & Current Tech Stack
Shell operates some of the oldest continuously producing oil & gas assets globally. Key challenges:
Upstream (Aging Platforms & Fields)
- North Sea Platforms (e.g., Brent, Cormorant Alpha)
- Outdated gas compression systems (high methane slip).
- Steam flooding in heavy oil fields (high CO₂/barrel).
- Nigeria (Onshore) – Flaring issues, legacy pipeline leaks.
- US Gulf of Mexico – Corroded subsea infrastructure.
Midstream (Pipelines & Gas Processing)
- LNG plants (e.g., Nigeria LNG, Brunei LNG) – Inefficient heat recovery.
- European pipeline networks – Limited smart monitoring.
Downstream (Refineries & Chemicals)
- Pernis (Netherlands), Deer Park (USA) – Fluid Catalytic Crackers (FCCs) need SCR/CO₂ capture retrofits.
- Legacy steam crackers – High energy intensity.
2. Sustainability Tech Deployment for CO₂ Reduction
Upstream: Methane & CO₂ Mitigation
✔ Eagle Burgmann Dual Cobra Seals – Reduce fugitive emissions by ~90% on aging compressors.
✔ Electric Fracking (e.g., Schlumberger’s NuPower) – Replace diesel pumps in Permian Basin.
✔ Flare Gas Recovery (GTL or Power Gen) – Monetize wasted gas (e.g., Shell’s Bonga Field project).
Midstream: Efficiency & Emission Control
✔ SCR (Selective Catalytic Reduction) – Cut NOx by 80% in gas turbines (e.g., Shell Norco Refinery).
✔ Catalytic Stripper (Sulphur Recovery Units) – Boost Claus process efficiency.
✔ H₂-ready pipelines – Prep for future energy transition.
Downstream: Carbon Capture & Hydrogen
✔ Blue Hydrogen + CCUS – Pernis Refinery targets 1Mt CO₂/yr storage by 2025.
✔ Plastic Waste Pyrolysis – Shell Moerdijk plant converts waste to feedstock.
✔ Biofuels Integration – Co-processing in FCC units (e.g., Shell Rheinland).
3. Circular Hydrocarbon Applications
| Waste Stream | Upcycling Opportunity | Example Shell Project |
|---|---|---|
| Flare Gas | GTL (diesel, waxes) | Pearl GTL (Qatar) |
| CO₂ from Refining | EOR (Enhanced Oil Recovery) | Quest CCUS (Canada) |
| Plastic Waste | Pyrolysis → Naphtha | Shell Singapore |
| H₂ Byproduct | Fuel cells for offshore platforms | Prelude FLNG pilot |
4. Global Benchmarking & Investment Needs
Competitor Comparison
| Company | Key Sustainability Move | ROI Horizon |
|---|---|---|
| Exxon | CCS in Permian Basin | 10+ years |
| BP | Offshore wind-powered platforms | 7–12 years |
| TotalEnergies | Bioplastics from refinery waste | 5–8 years |
Shell’s Investment Case
| Area | CAPEX (Est.) | OPEX Savings | ROI |
|---|---|---|---|
| Flare Gas Recovery | $1–2B | $200M/yr | 5–7 years |
| CCUS Retrofits | $3–5B | $500M/yr (CO₂ credits) | 8–12 years |
| H₂-ready Pipelines | $2B | $150M/yr (future-proofing) | 10+ years |
5. Recommendations for Shell
Short-Term (0–3 Years)
- Retrofit 100+ compressors with Eagle Burgmann seals (methane reduction).
- Deploy catalytic strippers in 5 key refineries (sulphur compliance).
- Expand flare gas-to-power in Nigeria/ME.
Mid-Term (3–7 Years)
- Scale CCUS at Pernis & Scotford (1.5Mt CO₂/yr by 2030).
- Convert 1–2 refineries to blue H₂ hubs.
Long-Term (7–15 Years)
- Full electrification of North Sea platforms (tied to offshore wind).
- Plastic-to-fuel commercial rollout (500k tons/yr capacity).
Conclusion
Shell’s 1970s assets require $10–15B in upgrades to meet net-zero goals, but:
- OPEX savings (20–30%) from efficiency gains offset costs.
- ROI of 5–12 years is achievable with CO₂ pricing.
- Strategic partnerships (Eagle Burgmann, Siemens Energy, startups) will accelerate tech deployment.
Next Steps:
- Pilot dual-cobra seals in North Sea.
- Apply for EU Innovation Fund grants for CCUS.
- Divest non-core legacy assets to fund upgrades.
Sources: Shell Sustainability Reports 2023, IEA Methane Tracker, McKinsey Energy Insights, Eagle Burgmann Case Studies.**
Would you like a detailed feasibility study for a specific asset (e.g., Brent Decommissioning + Repurposing)?