Shell plays down risk of stranded oil and gas reserves

  • Date: 15-Apr-2021
  • Source: Zawya
  • Sector:Oil & Gas
  • Country:Gulf
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Shell plays down risk of stranded oil and gas reserves

Since late 2019, Shell has wiped out over $20 billion from the value of its oil and gas reserves after lowering the outlook for commodity prices because of the energy transition and the impact on demand of the COVID-19 pandemic. Shell had just over 9 billion barrels of oil equivalent in proved oil and gas reserves last year, the equivalent of around 7 years of its 2020 production, its annual report said.Shell aims to cut its emissions from well-head to petrol station to net zero by 2050, and has set out intermediate targets, in one of the sector's most ambitious plans. The company said it will focus on hydrogen, biofuels and offshore wind as well as carbon-sucking technologies and planting trees, but it has yet to outline exact plans for reaching the target. Its annual spending is however set to stay focused on oil and gas in the coming years.Shell, the world's largest oil and gas trader, said it sells around 4.6% of energy consumed in the world and produces around 1.4% of total primary energy.Chief Executive Ben van Beurden said the net-zero strategy is "fully consistent" with the more stringent U.N.-backed goal set in a 2015 Paris conference to limit global warming.But