Energy Transition Strategy 2024
The energy system: our beliefs
Our core beliefs about the energy system inform our strategy. In summary, these beliefs are:
- Liquefied natural gas (LNG) will play a critical role in the energy transition, including replacing coal in industry
- Oil will have a continued role in transport, with growth in demand slowing over time
- Low-carbon molecules and renewable power will underpin the future energy system
- Carbon abatement and removal solutions will be needed for the world to achieve net zero
Growing our world-leading LNG business with lower-carbon intensity
Liquefied natural gas (LNG) helps provide secure energy, offering a lower-carbon alternative to coal for power and industry.*
It also provides stability to electricity grids alongside wind and solar.
As we grow our world-leading LNG business by an expected
20-30%
by 2030, we will continue to reduce the carbon intensity of our operations
- * LNG produces around 50% less carbon emissions than coal when used to generate electricity (IEA).
Cutting emissions from oil and gas production while keeping oil production stable
While the world still relies on oil for secure energy, we will help produce it with lower emissions.
In the US Gulf of Mexico, we are the leading operator and have one of the
lowest greenhouse gas intensities
in the world for our oil production.*
- * When compared with other oil and gas producing members of the International Association of Oil & Gas Producers.
Differentiated Downstream, Renewables and Energy Solutions
We are aiming to take the lead in the energy transition where we can combine competitive strengths with strong customer demand and support from governments, like in the transport sector.
At the end of 2023, for example, we had around
54,000
public charge points for electric vehicles at Shell forecourts, on streets and at locations such as supermarkets. This was up from 27,000 in 2022.
Investing in the transition
Between 2023 and the end of 2025, we are investing
$10-15 billion
in low-carbon energy solutions, making us a significant investor in the energy transition.
We invested
$5.6 billion
in 2023 alone. These investments include electric-vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage. This complements our investments in oil and gas.
Countries with examples of portfolio developments
Countries with examples of portfolio developments
divestment agreed
Countries with examples of portfolio developments
Park Rheinland
- These developments include acquisitions, investments, projects, divestments and withdrawals, at various stages of maturity and with different levels of Shell interest from minority investment to full ownership.
Our target is to become a net-zero emissions energy business by 2050
Our target is to become a net-zero emissions energy business by 2050.
This means net-zero carbon emissions from our operations and from the energy products we sell.
We have also set other targets and ambitions for emissions we are able to control (Scopes 1 and 2) and emissions outside of our control (Scope 3).
Emissions from our own operations (Scope 1 and 2)
Halving Scope 1 and 2 emissions by 2030 [A]
under operational control
(2016 reference year)
Eliminating routine flaring
from Upstream operations by 2025 [B]
Maintain methane emissions intensity below 0.2%
and achieve near-zero methane emissions by 2030
Emissions from the products we sell (Scope 3)
Net carbon intensity (NCI)
Introducing a range of 15-20% for our target to reduce NCI by 2030 (2016 reference year)
Updated
Oil products ambition
Reduce customer emissions from the use of our oil products by 15-20% by 2030, Scope 3 Category 11 [C] (2021 reference year)
New
- [A] On a net basis.
- [B] Subject to completion of the sale of Shell Petroleum Development Company of Nigeria Limited (SPDC).
- [C] Customer emissions from the use of our oil products (Scope 3, Category 11) were 517 million tonnes carbon dioxide equivalent (CO2e) in 2023, 569 million tonnes CO2e in 2021 and 819 million tonnes CO2e in 2016.
Our journey towards net zero
By the end of 2023, we had achieved more than
60%
of our target to halve Scope 1 and 2 emissions from our operations by 2030, compared with 2016.
We met our net carbon intensity target, covering Scopes 1, 2 and 3, for the third consecutive year. In total, we have achieved a
6.3%
reduction compared with 2016, the reference year.