BAKU, Azerbaijan, April 21. Royal Dutch Shell plans to reduce annual spending on oil and gas exploration to around $1.5 billion between 2021 and 2025, Trend reports with reference to the company.
“The world will need less oil and gas as it moves to a low- and zero-carbon energy system. This transition is reflected in Shell’s changing portfolio. In 2021, our oil production was 3.9% lower than in the previous year, as a result of divestments and natural decline. It was 7.6 percent lower than in 2019, when our oil production peaked,” the company said.
Shell expects its oil production to decline by an average of 1-2 percent a year to 2030. It does not anticipate any new frontier exploration entries after 2025. The company is transforming its refineries into five energy and chemicals parks which will produce low-carbon and synthetic fuels, as well as bitumen, lubricants and chemicals.
“The transformation of our refineries will help us to reduce production of traditional fuels by 55 percent by 2030, from around 91 million tonnes per annum (mtpa) in 2020 to 45 mtpa by 2030. In 2021, we reduced our production of traditional fuels to 71 mtpa.
Liquified natural gas (LNG) plays an important role in enabling countries to replace coal-fired power generation with a lowercarbon alternative. We are adding around 7 mtpa of new LNG capacity, which is under construction and expected to be on stream around the middle of the decade. This includes our LNG Canada joint venture and our interest in a new LNG processing unit in Nigeria,” said Shell.
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