Anglo-Dutch oil giant Shell has outlined its plans to ‘go green-er’ by the end of the next decade as the world shifts away from fossil fuels.
In its ‘energy transition’ report, Shell yesterday accepted that 80% of its current proved oil and gas reserves will be extracted by 2030.
The report contains Shell’s reply to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures and demonstrates the company’s near- and mid-term financial and portfolio resilience.
For Shell, this means that the company will still sell the oil and gas that society needs, while re-shaping its portfolio to move into lower-carbon energy, when this makes commercial sense.
Shell estimates that around 80% of its current proved oil and gas reserves will be produced by 2030, and only 20% after that time.
In the medium term, Shell will grow its business in areas it expects to be important in the energy transition, while reducing costs and improving its CO2-intensity performance.
The company is expanding in the power market as it expects the energy system to increasingly electrify, and it is adjusting its businesses to meet changing demand in different countries. This includes investments in areas such as wind generation in the Netherlands, supplying power to retail customers in the UK and offering hydrogen refuelling and re-charging stations for battery-powered vehicles (BPVs).
Shell chief executive Ben van Beurden said: “Understanding what climate change means for our company is one of the biggest strategic questions on my mind today.
“In answering that question, we are determined to work with society and our customers. We will help and inform and encourage progress towards the aims of the Paris Agreement.
“And we intend to continue to provide strong returns for shareholders well into the future.”
Meanwhile, BP has agreed a strategic alliance to explore joint projects in with Petróleo Brasileiro.
The alliance is also expected to include the transfer of technology, as well as joint training and research in Brazil and beyond. BP has been present in Brazil for over 60 years, supplying fuels and lubricants, exploring for oil and gas, and developing biofuels.
13 Apr 2018