LONDON (AFP) – Energy giant Royal Dutch Shell declared on Thursday that its oil output is locked in decline after peaking in 2019 as it outlined green plans to switch away from fossil fuels.
Shell said in a statement that it will invest up to USD6 billion (EUR4.9 billion) per year in green energy projects developing and promoting biofuels, electric car charging and renewables.
More than half the amount could end up being spent on marketing, Shell said.
In addition, Shell plans to still invest USD8 billion annually on new oil and gas exploration.
The London-listed company nevertheless said that it anticipates a “gradual reduction” in oil output of 1.0-2.0 per cent each year, including divestments.
Total carbon emissions for the company peaked in 2018, it added.
The global oil sector, nursing vast losses due to the Covid-19 pandemic, is accelerating plans to switch into greener energy and slash carbon emissions in the face of with intensifying climate change fears.
“Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society,” Shell Chief Executive Ben van Beurden said in Thursday’s statement.
“We must give our customers the products and services they want and need – products that have the lowest environmental impact.”