Shell, in a Turning Point, Says Its Oil Production Has Peaked
S

Shell, in a Turning Point, Says Its Oil Production Has Peaked

Royal Dutch Shell on Thursday made the boldest statement among its peers about the collapse of the oil age, saying that its production reached a high in 2019 and is now expected to gradually reduce.

Shell’s “total oil production peaks in 2019” and will now decline by 1 or 2 percent annually, The company said in a statement.

The announcement, part of the small print of a presentation about future clean-energy targets, marks a turning point for one of the world’s leading oil companies, dating back to the 19th century. And this underscores one thing that the company’s chief executive, Ben van Bairden, has expressed over the years: to remain in business, Shell must be seen as part of the solution, and not the cause, Climate change.

But as Europe’s largest oil and gas producer, Shell has doubts about how willing or able it will be to divest from its roots. Indeed, like other oil chiefs, Mr. van Bayerden is trying to walk a fine line amidst promoting green commitments to continue nurturing Shell’s cash-producing oil and gas units.

During a presentation of the company’s new strategy on Thursday, Mr. Bearden said, “Even when the world disintegrates, it will still need oil and gas for decades.” Oil and gas, he said, “will help pay for Shell’s change.”

The pace of change is clearly building. In Europe, in particular, the epidemic is proving to be a catalyst for more action by energy companies and others.

The demand for oil has revived somewhat since the fall of last spring, and Oil futures On Monday, they returned to their pre-pandemic levels, but Shell and other companies clearly felt that oil was no longer the mainstay they could rely on, so they switched to renewable sources such as wind, solar and hydrogen Investing more.

European oil companies are going in the same direction about almost all fossil fuel production, with some differences in approach. BP said last year that it would cut oil and gas production by 2030 by perhaps 40 percent. The company’s production fell 10 percent last year, mostly due to sales of oil fields.

Shell said on Thursday that its carbon emissions were probably at its peak in 2018, and that it was completing its previously announced efforts to reach net zero carbon emissions by 2050.

The company also emphasized that its emission reduction targets would include products that are sold to customers. This means that, in an effort to reduce its net carbon emissions to zero, Shell will not only calculate the emissions it generates in its business, but also the gases emanating from the tailpipes of cars using fuel in shale markets Will also calculate. Shell Burns and Other Uses that Sell Shell The company accounts for 90 percent of its emissions.

The announcement garnered praise from activist investors but disappointed some environmentalists, who want to see rapid change.

Adam Matthews, Director of Ethics and Engagement of the England Pension Board, said Shell’s plans to reach its 2050 targets were the industry’s “most comprehensive”. A group of institutional investors called Climate Action 100+ were said to be nude in the shell.

Shell is taking a somewhat different approach from its rivals BP and the Paris-based Total, which have recently held Emphasis on renewable energy projects like wind and solar Sometimes at high prices.

Instead, Shell says it wants to help customers navigate the complexities of reducing their own carbon emissions. At the retail level, that could be to plug their electric vehicles into Shell’s growing network of 60,000 charging points, or provide a filling space for vehicles running on hydrogen, a clean fuel that Shell has Has fostered over the years and is gaining favor.

Shell aims to use its large energy business unit and other capabilities to supply businesses with clean electricity and other low carbon fuels and help them with other needs. For example, Mr. van Bairden said, he can foresee the increasing emissions of shale and the growing expertise of shale in storing gases underground – the so-called carbon capture technology – that can provide in shale. They are ready to invest in clean electricity generation, like wind farms, but Shell officials say they do not think it will be a big money maker for the owner of renewable assets.

“We believe that there is more value in designing the right products and solutions for customers, only to produce commodity green electricity,” Mr van Beerden told reporters on Thursday.

Analysts said Shell’s relatively cautious stance for renewable investment was not surprising, given that the stock prices of companies in these sectors have not gained as of late. Shell said it intends to invest $ 22 billion to $ 22 billion in renewable energy such as wind and solar as well as clean energy facilities, a small piece of capital investment of up to $ 22 billion.

“Despite the green spin, the substance would suggest a more cautious approach to renewal,” said Stuart Joyner, an analyst with Redburn, a market research company.

Although Shell says its oil production is at its peak, its overall fossil fuel production will remain flat due to its natural gas flow. The company sees natural gas, which is a fuel transported on ships, as an important business in which it is a world leader and a transition fuel between petroleum and renewable goods.

Shell said on Thursday that in the near term it planned to spend $ 8 billion on oil and gas development and $ 4 billion on its natural gas unit per year.

There is a possibility that Europe’s largest oil company will continue to pump fossil fuels for a long time to the fire of some environmentalists.

Greenpeace UK said in a statement that without specific commitments on production cuts, Shell’s strategy could not succeed or “be taken seriously.” Greenpeace described Shell’s plans to offset emissions through the establishment and protection of forests and wetlands as “illusory”.

Mr Matthews of the Church of England said that increasingly detailed plans on emission reductions from European oil companies were a major advance from three years ago, when such discussions were barely underway.

“Things have moved a lot in that space of time,” he said.



Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

TikToker behind viral tortilla trick reveals new food hack

TikToker behind viral tortilla trick reveals new food hack UndefinedYahoo Life is committed to finding the best products for you at the best prices. ...

Treasury to Invest $9 Billion in Minority Communities

Treasury to Invest $9 Billion in Minority Communities WASHINGTON - The Biden administration on Thursday unveiled plans to invest $ 9 billion in minority communities,...

‘My Salinger Year’ Review: Ghost Writers

‘My Salinger Year’ Review: Ghost Writers As "My Salinger Year" proves, making a successful film about introspection is a bit challenging. This lame adaptation,...

Texas Gov. Abbott stalled federal offer to test migrants then blamed them for spreading Covid

Texas Gov. Abbott stalled federal offer to test migrants then blamed them for spreading Covid After relaxing state Kovid restrictions this week, Abbott alleged, without...