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Shell Reviewing Oil And Gas Output Reduction Targets: Sources

By Donna Ahern
Shell Reviewing Oil And Gas Output Reduction Targets: Sources

Shell is reviewing its current plan to reduce oil and gas output by 1% to 2% per year by 2030, chief executive officer Wael Sawan said in an interview with the Times published on Friday.

Sawan took office at the start of the year with a vow to boost Shell's performance and review its operations, while backing his predecessor Ben van Beurden's strategy to shift the company towards low carbon energy.

'Revise Current Goal'

Sawan nevertheless indicated that Shell could revise its current goal of reducing its oil and gas output by 2030.

"We're reflecting on what is the right guidance to the market," Sawan told the Times.


"I am of a firm view that the world will need oil and gas for a long time to come. As such, cutting oil and gas production is not healthy."

BP's Plans 

BP last month rowed back from plans to cut its oil and gas output by 40% by the end of the decade, and instead targeting a reduction of 25%.

Read More: BP Doubles Down On Hydrogen As Fuel Of The Future

Both Shell and BP reported record profits in 2022 on the back of soaring oil and gas prices following Russia's invasion of Ukraine.


Sawan, a Lebanese-Canadian citizen who joined Shell 25 years ago, has already announced plans to restructure the energy company's organisation and launched a review of Shell's European power retail businesses.

News by Reuters, edited by Donna Ahern, Checkout. For more supply chain stories, click here. Click subscribe to sign up for the Checkout print edition.

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