In its latest strategy for energy transition, Royal Dutch Shell said around 80% of its current proved oil and gas reserves will be produced by 2030, and only 20% after that time.
The report provides examples of how Shell is already active in many of the growth areas that will drive its continued success and resilience. Shell CEO Ben van Beurden says: “Understanding what climate change means for our company is one of the biggest strategic questions on my mind today.
He added that “In answering that question, we are determined to work with society and our customers. We will help and inform and encourage progress towards the aims of the Paris Agreement. And we intend to continue to provide strong returns for shareholders well into the future.”
The report contains Shell’s principal response to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures and demonstrates the company’s near- and mid-term financial and portfolio resilience, even against its recently-published and most rapid energy transition scenario, known as Sky. It also explains how Shell’s capacity to adapt to the transition should allow it to thrive in the longer term by supplying the types of energy customers will need over the coming decades.
For Shell, this means that the company will still sell the oil and gas that society needs, while preparing its portfolio to move into lower-carbon energy, when this makes commercial sense.