Shell says its oil production has peaked and will fall each year

Shell says its oil production has peaked and will fall each year

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The Anglo-Dutch company said in a statement on Thursday that it expects its oil production to decline between 1% and 2% per year. Its total carbon emissions probably peaked in 2018, he added.

“Our accelerated strategy will reduce carbon emissions,” said CEO Ben van Beurden. “Whether our customers are drivers, homes or businesses, we will use our global scale and trusted brand to grow in markets where the demand for cleaner products and services is stronger, delivering more predictable cash flows and generating higher returns,” he added.

Shell unveiled plans in September to become a net zero-emissions company by 2050 (including its own products and those it sells), joining European rivals BP (BP) and Total (TOT) in making a dramatic shift towards clean energy. The oil giants have disposed of billions of dollars in assets, spurred by forecasts that global oil demand may never recover to the levels reached before the pandemic.

In the short term, however, Shell will continue to invest about $ 8 billion a year in oil exploration and pumping, it said Thursday. It plans to invest $ 2 billion to $ 3 billion annually in renewable energy and hydrogen, with about $ 8 billion to $ 9 billion going to gas and integrated chemicals.

“Shell’s goal is to build low-carbon businesses on a significant scale in early 2030,” said the company, adding that capital expenditures would shift to clean energy over time.

The company wants to sell twice as much electricity as it sells today in 2030 and to expand its global electric vehicle network from more than 60,000 charging points today to around 500,000 in 2025.

Shell said it will give shareholders an advisory vote on its Energy Transition Plan, adding that it is the first company in the industry to do so.

– This is a developing story and will be updatedd.

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