Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Shell won’t abandon green transition in face of higher oil prices, says CEO

© BloombergShell oil prices
Ben van Beurden

Higher oil and gas prices will not see Shell change its green transition strategy to shift away from fossil fuels, the oil giant’s CEO has said.

Shell is one of many European majors that have pledged to shrink its traditional hydrocarbon business, while increasing investments in clean energy. While some critics have raised concerns that high oil prices might tempt these firms to stick to fossil fuels, Shell’s chief executive says its adhering to its energy transition strategy.

“You could be concerned that we have a very tight market coming up,” Ben van Beurden told shareholders on Tuesday. “We have decided not to ride that wave up.”

JPMorgan Sees $150 Oil in 2023 on Lack of OPEC+ Spare Capacity

That tightness is caused by investment in the oil and gas industry plunging to historically low levels, which aligns with an International Energy Agency report that says no new fields can be tapped if the worlds is to limit the impact of climate change.

“The problem, however, is that demand for oil and gas is not declining with that IEA outlook. As a matter of fact, it is going up,” Van Beurden said.

Shell will “enjoy” the benefits of a rising market, so it can return more money to shareholders and fund its energy transition strategy, but that doesn’t mean it will increase spending on fossil fuels.

“We are not minded to invest in a big way in a rising market because we believe that by the time we get there and start harvesting it we will then of course be beyond that peak again,” Van Beurden said.

Recommended for you

More from Energy Voice

Latest Posts