Shell has bookmarked 2050 to exit the oil exploration sector



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Shell has bookmarked 2050 to exit the oil exploration sector

Oil mining and exploration giant Shell has said that it passed its peak oil production in 2019 and that in the coming years, it is expecting a decline of about 1-2% in its oil production. The company also observed that its carbon emissions had also peaked about three years ago.

Furthermore, the company also reiterated its objectives to focus on renewable modes of energy generation. Earlier, the company had specified that it would join the ranks of fellow oil companies such as British Petroleum (BP) and Total (TOT) by becoming completely emission-free.

Shell’s slated date for meeting this objective is 2050.

Shell outlines future goals in the energy sector

This long-term goal aside, in the short-term, the company’s planning to invest further in oil exploration, among other energy-producing verticals.

In its statement, the company said that while it would be investing about $8 billion in the oil-exploration sector on a yearly basis, it would also be investing $2-$3 billion in the renewable energy sector. Likewise, the company also plans to invest around $8-$9 billion in the sector of chemicals and integrated gas.

Within the set-up of renewable energy, Shell wants to increase its sales of electricity to double its present numbers by 2030. Likewise, it’s also keen on widening its network of electric charge points across the world to about 225,000 from the present 60,000.

“Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society. We must give our customers the products and services they want and need – products that have the lowest environmental impact.

At the same time, we will use our established strengths to build on our competitive portfolio as we make the transition to be a net-zero emissions business in step with society. Whether our customers are motorists, households or businesses, we will use our global scale and trusted brand to grow in markets where demand for cleaner products and services is strongest, delivering more predictable cash flows and generating higher returns,” noted Shell in its statement.