Strategic themes

Clear portfolio strategy

Core Upstream themes

• Strong cash generation
• Fully sustain through the coming decades

Leading Transition themes

• Extend leadership
• Capitalise on Energy Transition

Emerging Power theme

• Capture value from evolving consumption patterns
• Prove investment case and scale up

Core strengths

Capital allocation

• Value- and returns-driven
• Diversify risk and opportunity

Portfolio resilience

• Balanced case generation
• Enables low-carbon future

Integration

• Optimise value chains
• Unlock superior value

Customer orientation

• Create, meet new demand
• Key differentiator

Industry-leading returns per strategic theme

As part of our strategy, we divide our portfolio into strategic themes, each with distinctive capabilities, growth strategies and risk management.

Organising our businesses into seven strategic themes has helped us focus our investment priorities and drive delivery of our long-term ambitions. Due to the evolution of our businesses and the external environment, in 2019 we refreshed the way we group the strategic themes to better communicate our portfolio strategy and long-term outlook:

• Core Upstream themes comprise Deep Water, Shales and Conventional Oil and Gas. These themes are central to Shell and we will sustain their strong cash generation through the coming decades.
• Leading Transition themes comprise the market-facing Integrated Gas, Chemicals and Oil Products businesses. These are businesses where we already have a leading position in the industry and that are critical for us to capitalise on the energy transition to a lower-carbon future.
• Emerging Power theme is focused on creating business models to support the evolving customer demands for more electricity through the energy transition to a lower-carbon future. Shell aims to become an integrated power player and grow, over time, a significant new business.

The refreshed grouping continues to provide clarity about our strategy and expectations in relation to returns, risks and opportunities.

Core Upstream themes

Deep Water

• Leading portfolio
• Strong growth funnel
• Sustained high-margin production

Shales

• Growing production in high-margin basins
• Competitive delivery

Conventional Oil and Gas

• High-graded portfolio with longevity
• Growth potential in deep resource base

Leading Transition themes

Integrated Gas

• Extend market leadership
• Unique portfolio optimisation capability

Oil Products

• Most successful mobility retailer, #1 in lubricants
• Competitive/high-quality refining backbone

Chemicals

• Strong demand growth despite growing recycling
• Focus on base, derivative and performance chemicals

Emerging Power theme

Power

• New sources of value emerging
• Returns drive pace of scaling up

Organising our businesses into seven strategic themes has helped us focus our investment priorities and drive delivery of our long-term ambitions.