Royal Dutch Shell directors say the company will be able to deliver increased production well into the future through a focus on big projects in which unconventional assets like oil sands will play an increasingly important role.

While the long lead times involved meant growth would be limited before 2010, the oil and gas firm pleased analysts by confirming that it maintained its oil and gas reserves in 2007.

In an update on strategy, Jeroen van der Veer, chief executive, said Shell was entering an "unprecedented phase of activity" during which it would be creating new heartlands in an emerging energy landscape.

In the belief that its ability to invest in big and complex projects will give it an edge, Shell is revamping its portfolio for a world in which increased and volatile commodity prices will help trigger cost inflation and more intense competition for resources.

Van der Veer said major investments included a programme to invest in upstream projects to develop 10 billion barrels of oil equivalent (boe) resources. These could produce one million-plus barrels of oil equivalent daily, supporting 2%-3% growth.

Shell is also targeting daily production of 60,000 barrels from bitumen-soaked sands in Canada, up 60% on current levels.

It expects to increase capacity in processing liquefied natural gas and gas to liquids, and wants to position its fuels and lubricants marketing businesses in new growth areas.

The company said organic reserves additions totalled 1.5 billion boe in 2007, compared with 1.2 billion boe production.

Van der Veer made no mention of the UK North Sea. A list of 50 legacy assets under construction includes the Gjoa field in the Norwegian North Sea but none in the UK sector.