Shell not interested in chasing demand: press
The head of Royal Dutch Shell said chasing the gap between supply and demand for fossil fuels is not in step with its energy transition goals, the Bloomberg news agency reported November 30.
Shell last month proposed relocating its head office from the Netherlands to the UK. The move came as Shell faced pressure in the Netherlands to beef up its targets on reducing emissions. A Dutch court ordered the company earlier this year to commit to more ambitious targets for cutting Scope 1 and 2 emissions, and introduce a goal for Scope 3 emissions.
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Shell CEO Ben van Beurden told shareholders on November 30 that a tight market for oil and natural gas does not warrant a shift in corporate strategy.
“You could be concerned that we have a very tight market coming up,” he was quoted by Bloomberg as saying. “We have decided not to ride that wave up.”
Oil and natural gas are highly politicized in the US, with pro-energy lawmakers accusing president Joe Biden of pursuing a low-carbon economy in a way that drives consumer energy prices higher. Investor pressures to shift gears, meanwhile, has pushed some companies to spend more on renewables.
A report issued December 1 from Norwegian consultancy Rystad Energy, however, finds that spending in US shale is expected to increase by nearly 20% next year to around $84bn.
Van Beurden, however, suggested his company would patiently stay the course on its energy transition strategy.
“We are not minded to invest in a big way in a rising market because we believe that by the time we get there and start harvesting it we will then of course be beyond that peak again,” he said.