One of the world’s oldest and largest oil companies has admitted what almost everyone else already knew.Shell isn’t going to meet its 2035 emissions target. And 2050 doesn’t look doable either.In its latest ‘energy transition strategy’ update, the Anglo-Dutch supermajor said it would reduce the ‘net carbon intensity’ of all the energy products it sells by 15% by 2030 compared to a previous target of 20%.“We believe the world will continue to need oil and gas for many years,” wrote CEO Wael Sawan, who is Canadian..”If society is not net-zero in 2050… there would be significant risk that Shell may not meet this target.”Shell.The report was the first in its three-year review of its energy transition plans after it was adopted in in 2021. Longer term targets were thrown completely out the window. Even 2050 is looking doubtful.And it blames governments and consumers for its changing strategy, and stated that “cutting oil and gas production is not healthy” for the global energy system.The report also stresses that its plans for net-zero are dependent on society as a whole and “if society is not net-zero in 2050… there would be significant risk that Shell may not meet this target.”.Elsewhere in the report, Shell noted it has “chosen to retire its 2035 target of a 45% reduction in net carbon intensity” due to “uncertainty in the pace of change in the energy transition.”While it is still aiming for net zero by 2050, it is now focussing on its own internally generated emissions as opposed to cutting its entire ‘scope 3’ emissions, which account for the end user.Meanwhile, it plans to increase LNG production by more than 30%.“Investment in oil and gas will be needed because demand for oil and gas is expected to drop at a slower rate than the natural decline rate of the world’s oil and gas fields, which is 4-5% a year.”It comes after other majors such as BP and ExxonMobil have scaled back respective emissions reduction plans.
