Royal Dutch Shell announces that oil is on its way out – but gradually

Royal Dutch Shell announces that oil is on its way out – but gradually.

Royal Dutch Shell

Royal Dutch Shell yesterday announced that the company's oil production peaked in 2019, and they expect a gradual decline. moving forward.

The company said in a statement that “Shell today set out its strategy to accelerate its transformation into a provider of net-zero emissions energy products and services, powered by growth in its customer-facing businesses. A disciplined cash allocation framework and rigorous approach to driving down carbon emissions will deliver value for shareholders, customers and wider society. Shell also confirmed its expectation that total carbon emissions for the company peaked in 2018, and oil production peaked in 2019.”

“Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society,” said Royal Dutch Shell Chief Executive Officer, Ben van Beurden.

“We must give our customers the products and services they want and need – products that have the lowest environmental impact. 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.

“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.

“From today, Shell is integrating its strategy, portfolio, environmental and social ambitions under the goals of Powering Progress: generating shareholder value, achieving net-zero emissions, powering lives and respecting nature. Shell’s reshaped organisation will deliver on these goals through the three business pillars of Growth, Transition and Upstream.

Shell also said that the company “expected gradual reduction in oil production of around 1-2% each year, including divestments and natural decline.”

Like every other mode of transportation that burns gas or diesel fuel, the North American railroad industry is working on emissions reduction programs. While the announcement from Shell yesterday was not totally unexpected, it was an aggressive announcement around it’s plans for the future.

For more information, please check the Shell Oil website.