• 3 minutes Tesla is the Most American Made Car!
  • 7 minutes Should the US government be on the hook for $15 billion?
  • 9 minutes California breaks 1 GW energy storage milestone
  • 24 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 23 mins U.S. Presidential Elections Status - Electoral Votes
  • 18 hours China Producing Half of the Worlds Electrical Vehicle Batteries is Experiencing Explosive Pollution
  • 8 hours Withdrawl of American troops from Iraq and its direct impact on crude oil supply
  • 2 hours Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines.
Oil Prices Boosted By Falling Crude Inventories

Oil Prices Boosted By Falling Crude Inventories

Crude prices rose on Wednesday…

China Buys Less Saudi Crude As It Slams The Brakes On Oil Imports

China Buys Less Saudi Crude As It Slams The Brakes On Oil Imports

Saudi Arabia remained China’s single…

Middle East Oil Giants Grapple With Cyberattacks

Middle East Oil Giants Grapple With Cyberattacks

The latest data breach that…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Shell To Exhaust Dwindling Oil & Gas Reserves By 2040

Shell expects to have produced 75 percent of its current proved oil and gas reserves by 2030, and only around 3 percent after 2040, the supermajor said in its Energy Transition Strategy that it will put to a non-binding shareholder vote next month.   

Discussing the risk of stranded assets in the energy transition, Shell said that every year it tests its oil and gas portfolio under different scenarios, including prolonged low oil prices, and cross-references assets with break-even prices to assess if they would still be viable in case of low oil and gas prices.

At December 31, 2020, Shell estimated that around 70 percent of its proved plus probable oil and gas reserves, known as 2P, will be produced by 2030, and only 5 percent after 2040.   

Shell’s proved oil and gas reserves have been declining in recent years, shrinking the reserves life to below eight years of production.

In 2020, Shell’s proved reserves—taking production into account—decreased by 1.972 billion barrels of oil equivalent (boe) to 9.124 billion boe at December 31, 2020, the firm’s annual report showed.  

That’s reserves for just seven years of production, lower than most peers.

The declining reserves life is not unique for Shell. The largest international oil companies have seen their average crude reserves drop by 25 percent over the past five years, which could be a challenge for Big Oil’s production and earnings in the coming years, Citi said earlier this month.

The supermajors reported lower reserves in their most recent reports, also due to the 2020 oil price and oil demand collapse, which forced all of them to write off billions of U.S. dollars off the value of assets.  

In Shell’s case, the declining reserves life is not in contradiction to its assessment from earlier this year that its oil production peaked in 2019 and is set for a continual decline over the next three decades.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News