Oil major Shell is set to undertake a widespread review of its business operations with the aim of “adapting to a different future.”
Shell has already set itself the target of becoming a net-zero-carbon business by 2050. Back in April, Ben van Beurden, Shell’s CEO, said about this:
“Society’s expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions, which is why we aim to be a net-zero emissions energy business by 2050 or sooner. Society, and our customers, expect nothing less.”
When Shell was asked about reports in the oil and gas industry publication Upstream that an autonomous renewables unit was in the works, a spokesperson said the company would review its operations, and where necessary, it will adapt them to better suit the conditions in future.
While the move towards renewables was already inevitable, the coronavirus pandemic has emphasised this further, with many analysts doubting if the demand for oil will ever fully return to pre-COVID-19 levels. The demand for oil as a fuel is expected to decrease further over time, although it will still be needed to provide the raw materials for products like gear oil and cutting fluid for industrial use.
Shell already has a presence in the renewables industry, such as stakes in the Egmond aan Zee and Borssele III and IV offshore wind farms in the Dutch waters of the North Sea, as well as four operational onshore wind farms in the US.