Shell says its oil production has peaked and will decline every year
Shell is now defining how it hopes to achieve this Its goals. It wants to sell more clean energy, while investing in carbon capture and afforestation projects to offset emissions. It will also expand its business in the production and distribution of biofuels.
“Whether our customers are motorists, homeowners or businesses, we will use our global scale and trusted brand to grow in markets where demand for cleaner products and services is stronger, providing more predictable cash flows and yielding higher returns,” said CEO Ben Van Borden. . .
This is the case in Shell too, despite announcements on Thursday.
Focus on energy sales
Based on the company’s forecast, Shell’s oil production will decrease By up to 18% by 2030, And 45% By 2050. However, this means that it will still produce more than 1 million barrels of oil per day in 2050. (The company has produced nearly 1.9 million barrels. Of oil per day in 2019).
BP said in August that its oil and gas production would drop 40 percent from 2019 levels by 2030 as its low-carbon investment increased.
Shell said on Thursday that Shell would continue to pump about eight billion dollars annually to explore for and pump oil. It plans to invest between $ 2 billion and $ 3 billion annually in renewable energy sources and hydrogen, with between $ 8 to $ 9 billion toward integrated gas and chemicals.
“Shell will continue to invest more than 80% in oil and gas in the coming years, while investments in renewable energy are lagging far behind,” the Dutch Friends of the Earth group, a climate action group, said in a statement. She added that Shell’s strategy has wrongly focused on offsetting emissions rather than reducing them altogether.
According to Shell, capital spending will shift to clean energy “over time”. The company aims To build a “large-scale low carbon business by early 2030”.
Jessica Ull, CFO, told reporters that Shell will prioritize selling clean electricity to customers rather than investing in renewable energy generation, as competitors like BP have done. “In order to sell these products, you don’t necessarily need to have the generation capacity,” she added.
The company It wants to double its sales of electricity by 2030, and grow its global network of electric vehicles from more than 60,000 charging points today to about 500,000 by 2025. It expects to sell energy to more than 15 million individual and corporate customers around the world.
Shell said it would give shareholders an advisory vote on its energy transition plan, adding that it was the first company in the sector to do so.
“Organizer. Social media geek. General communicator. Bacon scholar. Proud pop culture trailblazer.”