In its updated plan for its Energy Transition Strategy, UK-based energy giant Shell has revised its expected cut in net carbon intensity for its full range of products.
The cuts are now expected to be at 15–20% when compared to 2021 levels. This is a slight downgrade on the 20% target previously set.
Shell, which also makes lubricant and grease products, says the revision is needed due to it focusing less on volume and more on value, so it will be selling less power to retail customers. It therefore expects overall power sales through the decade to be less than previously expected.
Wael Sawan, the CEO of Shell, said in an introduction to the report that the company remains committed to becoming a net-zero business by 2050. He also pointed out that the demand for energy would grow in the meantime, as more people gain access to it, and the global population grows by an estimated two billion people.
Sawan said that while meeting this increased demand, the world needed to methodically move away:
“…from fossil fuels to low-carbon energy to achieve net-zero emissions. Today, fossil fuels meet around 80% of global energy demand, with an even greater reliance in many developing countries. We support a balanced energy transition, one that maintains secure and affordable energy supplies.”
The report also said that oil and gas demand was falling more slowly than the existing fields’ natural depletion rate of around 4–5%, so continued investment in oil and gas projects is needed to meet demand.
