Royal Dutch Shell has committed to reducing its carbon footprint in half by 2050, according to its Energy Transition Report. The company plans to spend as much as $2 billion a year on low-carbon energy sources.
Shell will still sell the oil and gas that society needs, while preparing its portfolio to move into lower-carbon energy, when this makes commercial sense.
Shell’s strategy, global portfolio and strong financial framework provide the ability to thrive through potential changes in the energy system to 2030. Every year the company assesses its portfolio under different scenarios, including prolonged low oil prices. In addition, Shell ranks the break-even prices of its assets in the Upstream and Integrated Gas businesses to assess their resilience against low oil and gas prices. These assessments indicate a low risk of stranded assets in the current portfolio.
As of Dec. 31, 2017, Shell estimates that around 80 percent of its current proved oil and gas reserves will be produced by 2030, and only 20 percent after that time.
Shell’s greenhouse-gas emissions rose last year to the highest since 2014, according to a release.
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