Importance of the Development of the New Transformation Process Gas to Liquids - Assignment Example

Some of the production or operational barriers that Shell must overcome to make GLT successfulOne of the barriers that Shell needs to overcome is the high cost of the production process that might render the process infeasible. High level of energy input that the process requires is another operational barrier that faces the company. The required energy input may also make the process uneconomical besides its adverse effects on energy and environmental sustainability initiatives (Ferrell, Hirt and Ferrel 161).

Shell’s commitment to the project should the project fail to pay off within five yearsShell should continue with its commitment to the project even if it does not pay off within five years. This is because the project may be highly profitable in the end. The company may also benefit from the project’s marginal revenues after the period and the revenues can be used towards paying off the start-up cost. Shell should also maintain its commitment to the project because of identifiable secondary benefits such as future business relations (Ferrell, Hirt and Ferrel 161).