Shell: 2019 marked the beginning of a decline in oil production

Royal Dutch Shell (or Shell for short) confirms that its total oil production peaked in 2019. They also expect a gradual reduction in oil production of around one to two percent each year. Additionally, its total carbon emissions likely peaked in 2018.

Shell also stated that its oil production will decline by as much as 18% by 2030, and 45% by 2050. However, that still means that it will be producing more than 1 million barrels of oil a day in 2050 (The company produced almost 1.9 million barrels of oil a day in 2019).

The company hid the detail in a statement about “accelerating the drive for net-zero emissions”. Shell announced in September 2020 that it would achieve the goal by 2050, and is now announcing an “accelerated strategy” to phase out of emissions.

Among the promises, Shell says that it will invest around USD 100 million (RM403 million) a year in “nature-based solutions” and to achieve “double-digit share of global clean hydrogen sales”. However, it will also invest into biofuels—which can be just as polluting as gas and diesel, and will continue to pour around USD 8 billion (RM32 billion) a year into oil exploration and pumping.

“Shell will continue to invest more than 80% in oil and gas in the upcoming years, while investments in renewable energy are lagging far behind,” said climate action group Friends of the Earth Netherlands.

The oil market has been in a decline since 2015, and it has even gotten worse since the COVID-19 pandemic. Shell’s decline in oil production is might mean that the market is transitioning away from fossil fuels, but its transition to low-carbon energy would mean that they would be laying off 10% of its workforce.

And while the company will eventually cut its fossil fuel production by 45% in 2050, it clearly won’t be enough to put an end to all new oil and gas infrastructure. This means that we can’t leave the transition up to oil production companies—governments to take a much more active role.

[ SOURCE, IMAGE SOURCE ]

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