(Adds executive quote, details)
Feb 5 (Reuters) - Royal Dutch Shell's output in the top U.S.
shale field reached 250,000 barrels per day in December, the
company's Permian head said on Wednesday.
Shell plans to spend about $3 billion per year for the next
five years on shale projects, said Amir Gerges, vice president
of Permian assets for Shell, at the Argus Americas Crude Summit
in Houston.
“We continue to ramp up our production from our core
acreage,” Gerges said.
Shell and rival oil majors Exxon Mobil, Chevron and BP are
ramping up production in the Permian Basin of Texas and New
Mexico, the largest U.S. shale field.
The field will continue to be the heart of U.S. oil growth,
Gerges said, adding the industry faces challenges in the region,
ranging from too much natural gas flaring to inadequate
infrastructure and "even today’s investor sentiments."
Shell has previously indicated it might look for a way to
expand its presence in the Permian, but during last week's
earnings call, Chief Executive Ben van Beurden indicated the
timing is not right for an acquisition.
"I think anything inorganic would not be the right thing to
do," van Beurden said.
Oil and gas companies of all sizes have been under pressure
to produce more free cash and return it to investors through
share buybacks and dividends.
(Reporting by Jennifer Hiller in Houston
Editing by Bernadette Baum)
