The Anglo-Dutch energy giant confirmed that its total oil production peaked in 2019 and will decline by approximately 2% in the next few years.
Royal Dutch Shell has unveiled a strategy to become a net-zero carbon emissions company by 2050, a process that will come amid the energy giant’s drive to reduce oil output.
He vowed to give Shell customers products and services that “they want and need” and which “have the lowest environmental impact”.
He pledged that the new strategy would create “more predictable cashflows” and add to generating higher returns, something that Van Beurden claimed would help the company increase its dividends by 4% a year, and reduce its net debt to $65 billion.
The statement came as Royal Dutch Shell signalled its readiness to slash net carbon intensity by up to 8% by 2023, which would increase to 20% by 2030 and 45% in 2035 before reaching an absolute emissions cut of 100% by 2050.
The company also said that its oil production reached a peak in 2019, and that it would continue to plummet by about 2%, amid the energy giant’s plans to expand its capacity to export 33.3 million tonnes of liquefied natural gas (LNG) per year.
Jeanne Martin, a senior campaign manager from the London-based charity Shareaction, argued that Shell’s blueprint raised “a lot of red flags”.
Martin was echoed by Mel Evans, a senior Greenpeace campaigner, who insisted that “without commitments to reduce absolute emissions by making actual oil production cuts, this new [Shell] strategy can’t succeed nor can it be taken seriously”.