Energy giant outlines strategy to deal with future needs

Oil giant Shell has said it will continue to “sell the oil and gas that society needs” but is positioning itself to transition further into low-carbon energy when it “makes commercial sense”.

Shell’s Energy Transition Report outlines the firm’s commitment to oil explora- tion while setting out its strategy for future changes in the energy sector.

The company said it estimates 80% of its proven oil reserves “will be produced” by 2030, and only expects 20% production after that.

Assessing its current portfolio, Shell said it will grow the business in areas it expects “to be important” in terms of the energy transition, evidencing recent investments in offshore wind and hydrogen fuelling.

Using data from the company’s recently released Sky Scenario, Shell said the firm is using this methodology to identify future investment areas and ways to meet its emissions targets.

Ben van Beurden, Shell chief executive, 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.”

The company also confirmed it was expanding into new power markets and looking at further investment in wind energy in the Netherlands while expanding on electric car charging.

Ben van Beurden