Exclusive: Shell launches major cost-cutting drive to prepare for energy transition

  • 📰 Reuters
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters.

FILE PHOTO: A Shell oil and gas sign is pictured near Nowshera, Pakistan's northwest Khyber-Pakhtunkhwa Province Sept. 8, 2010. REUTERS/Morteza Nikoubazl/File Photo

“We had a great model but is it right for the future? There will be differences, this is not just about structure but culture and about the type of company we want to be,” said a senior Shell source, who declined to be named. Shell now wants to focus its oil and gas production on a few key hubs, including the Gulf of Mexico, Nigeria and the North Sea, the sources said.

The review, which company sources say is the largest in Shell’s modern history, is expected to be completed by the end of 2020 when Shell wants to announce a major restructuring. It will hold an investor day in February 2021. Shell’s operating costs, which include production, manufacturing, sales, distribution, administration and research and development expenses, fell by 15%, or roughly $7 billion, between 2014 and 2017.

Van Beurden said in July that Shell was on track to deliver $3 billion to $4 billion in cost savings by the end of March 2021, including through job cuts and suspending bonuses.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Following a trend, ecological awareness work, use of renewable energy and sustainability. Entrepreneurship vision, it is increasingly common for countries to opt for transport based on bio-electric energy. Cool clean energy. Great example!

Hope Nigeria's leaders would see the handwriting on the wall & begin to plan for post-oil economy. By 2040 no new ICE vehicles in EU/UK. NNPCgroup FinMinNigeria NigeriaGov nassnigeria Cc PeterObi atiku KwankwasoRM MoghaluKingsley CCSoludo obyezeks

Cite this next time a climate change denier gives you grief - Shell know they’re toast if they do nothing

Damn. Maybe they can be called an energy company if they follow through.

Seems someone is looking ahead - while the US is determined to go backward on so many fronts, not just energy .

well, Royal Dutch Shell has been obstructing ecological progress for way too long. and I'm not even an environmentalist.

MMFlint

Too late

Please help me share this video against vacuous Moscow Mitch! 👍

Interesting

Following BPs lead. Committing capital to hydrogen.

Populist chatter for the purpose of keeping the market and stock prices?

Bull Bull bullish

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines