Shell: Our Oil Production has Peaked

February 11, 2021

More evidence, if you needed any – the fossil era is over.

Houston Chronicle:

Royal Dutch Shell, one of the world’s largest oil companies, said its crude production peaked in 2019, another sign of the accelerating shift from fossil fuels amid concerns about climate change.

The European oil major on Thursday laid out its strategy to transform its century-old fossil fuel business into a clean energy leader and meet the company’s net-zero emissions target by 2050. Shell said it will invest as much as $6 billion a year into renewable energy projects while divesting from oil and gas projects to the tune of $4 billion a year.

“We must give our customers the products and services they want and need – products that have the lowest environmental impact,” Shell CEO Ben van Beurden said in a statement. “At the same time, we will use our established strengths to build on our competitive portfolio as we make the transition to be a net-zero emissions business in step with society.”

European oil majors are moving aggressively to transition away from fossil fuels in the face of increasing investor pressure and government regulations aimed at avoiding the worst consequences of climate change. French oil major Total in recent weeks announced plans to develop 16 solar projects across the U.S., including four in the Houston area. British oil major BP last year sold its petrochemicals business and is investing in new wind projects around the U.S.

Shell said it will use its legacy oil and gas business to generate the capital needed to build a low-carbon business of “significant scale” by the early 2030s. In the near term, the company said it will spend around $8 billion a year on oil and gas exploration while spending up to $6 billion a year on renewables and biofuels as well as up to $9 billion a year on its natural gas and petrochemicals business.

In addition, Shell said it is investing in carbon capture and storage technology to reduce the environmental impact of its oil and gas operations. The company currently has three carbon capture projects in the works globally, totaling around 4.5 million tonnes of capacity.

Shell also is planning to grow its global electric vehicle charging network to around 500,000 charge points by 2025, up from more than 60,000 charge points currently, to support the expected rise of electric vehicles in the coming years.

Ultimately, Shell said its transition efforts will drive down its greenhouse gas emissions by 6 percent by 2023, 20 percent by 2030, 45 percent by 2035 and 100 percent by 2050, compared with 2016 emissions levels. The company said it expects its carbon emissions peaked in 2018.

“Whether our customers are motorists, households or businesses, we will use our global scale and trusted brand to grow in markets where demand for cleaner products and services is strongest, delivering more predictable cash flows and generating higher returns,” van Beurden said.

One Response to “Shell: Our Oil Production has Peaked”

  1. The Stone Age did not end for lack of stones. Demand changed to metal tools. So it can be for fossil fuel. If demand changs most of what is left of the fossil fuel will stay in the ground. The free market isa demand driven.

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