Anglo-Dutch oil major Shell has announced that it hit its peak production in 2019, and it only expects it to decline slightly each year as the company increasingly diversifies into renewable energy generation. It also said its carbon emissions peaked in 2018, and they should continue to decline.
Last year, Shell set out ambitions to become net-zero in terms of carbon emissions by 2050, along with other European oil companies like Total and BP. Of course, oil will be needed in the near-to-medium term to fuel the current generation of vehicles, as well as to make products like spindle oil and grease for industry. Therefore, Shell will continue spending about £6 billion a year on oil activities, with a similar amount being spent on integrated chemicals and natural gas.
Shell will also invest a substantial but lesser amount in hydrogen and renewables, but this is expected to change over time as the company scales up its low-carbon business and shifts its capital spending accordingly. Ben van Beurden, Shell’s CEO, said about this:
“Our accelerated strategy will drive down carbon emissions. 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.”
By 2025, the company also plans to extend its network of charging points for electric vehicles from over 60,000 to about 500,000. It also wants to double its electricity sales by 2030.