LONDON, June 21 (UPI) -- Shell and China National Petroleum Co. announced an agreement to set up a joint venture that would focus on improvements in drilling natural gas wells onshore.
Shell said making so-called tight gas, shale gas and coal-bed methane fully commercial requires drilling hundreds of wells every year over the course of several years. Its proposed joint venture with CNPC would focus on automation techniques that could repeat the drilling process in a standardized way.
"CNPC and Shell are collaborating in a variety of projects globally with the aim of investing for profitable growth and to meet the world's growing demand for cleaner, affordable energy," Shell Chief Executive Officer Peter Voser said in a statement.
Shell said the details of the joint venture would emerge over the coming months.
"The joint venture intends to use state-of-the-art technologies such as automated directional drilling and drilling optimization, including technologies pioneered by Shell in its North America tight gas operations," the company added.
