Shell to Cut Spending on Oil and Gas Projects and Focus on Renewable Energy Market

Written by Kelly

Published on 21/09/2020 at 12:31

Trabalhador da Shell/Imagem: Divulgação

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According to Sources, Shell Is Set to Unveil a Major Restructuring Plan to Cut Costs in Its Oil and Gas Division and Firm Up Investments in Renewable Energy, Aiming for Energy Transition

The energy transition scenario is becoming increasingly strong worldwide, and major oil and gas companies are looking to redirect their investments toward the renewable energy sector. Following the example of giants BP and Total, Shell is planning to cut operational costs and resources in new projects by 30% to 40%, according to sources speaking to Reuters.

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According to sources, Shell is expected to announce a major restructuring by the end of 2020, possibly the largest in the company’s modern history, reflecting recent moves to reduce its focus on oil and gas exploration and production over the next decade and build new business models in the renewable energy sector.

According to a spokesperson for Shell in a statement, the company is undergoing a strategic review of the organization, aiming to ensure it is prepared to thrive during the energy transition and is currently evaluating a range of options and scenarios.

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Key Areas to Be Affected by Shell’s Cost-Cutting Plan

In the oil and gas production sector, Shell is expected to focus on only a few crucial regions, such as the Gulf of Mexico, Nigeria, and the North Sea, according to sources.

Additionally, according to the sources, in the fuel distribution area, cost cuts will occur in the network of 45,000 Shell stations, the largest in the world.

In the company’s gas sector, there will also be costs related to Liquefied Natural Gas (LNG) operations and gas production, as addressed by the sources.

Oil Companies Are Focusing on the Global Renewable Energy Market

Shell is not the only major oil company adapting its projects to the energy transition. BP (British Petroleum), Total, and others in Europe have announced business plans aimed at operations in the renewable energy market, as clients, governments, and investors increasingly demand changes for a low-carbon scenario.

Shell to Cut Spending on Oil and Gas Projects and Focus on Renewable Energy Market

According to Sources, Shell Is Set to Unveil a Major Restructuring Plan to Cut Costs in Its Oil and Gas Division and Firm Up Investments in Renewable Energy, Aiming for Energy Transition

Read Also

Key Areas to Be Affected by Shell’s Cost-Cutting Plan

Oil Companies Are Focusing on the Global Renewable Energy Market

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Shell to Cut Spending on Oil and Gas Projects and Focus on Renewable Energy Market

According to Sources, Shell Is Set to Unveil a Major Restructuring Plan to Cut Costs in Its Oil and Gas Division and Firm Up Investments in Renewable Energy, Aiming for Energy Transition

Read Also

Key Areas to Be Affected by Shell’s Cost-Cutting Plan

Oil Companies Are Focusing on the Global Renewable Energy Market

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Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

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