Shell optimistic in the long term

THE HAGUE, Netherlands, March 17 (UPI) -- The long-term investment outlook for Royal Dutch Shell remains positive despite the global economic recession, the company's chief executive said.

"These are testing times in the oil and gas industry," said Jeroen van der Veer. "Whilst short-term measures are important, we keep our long-term perspective and continue to believe that energy needs over the long term provide a positive context for Shell's investment programs today."

Van der Veer said upstream challenges included having productivity growth in declining resource fields while meeting consumer expectations in the downstream market.

Shell said in its March strategy update that it plans to increase its oil production by around 2 percent in the next decade and boost its liquefied natural gas capacity by 40 percent.

For 2009, the company said it plans to invest more than $31 billion in its projects, noting, meanwhile, that it is the only company in the oil and gas sector to announce its dividend growth for the year.

"We continue to focus the company on delivering strong operating performance and maintaining the financial flexibility to fund both new projects and returns to shareholders," said van der Veer.