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Shell—one of the oil majors that is increasingly betting on natural gas and low-carbon fuels—is targeting 20 percent of its global fuel station sales to come from electric vehicles recharging and low-carbon fuels by 2025, John Abbott, Downstream Director at Shell, told Reuters in an interview published on Tuesday.
While Shell plans to expand fuel stations in China, India, and Mexico—where it sees growth in this market over the next decade—it would continue to focus on meeting demand for cars running on fuels alternative to gasoline and diesel, Abbott said.
Earlier this month, Shell opened its first service station in Mexico, and plans to invest US$1 billion on that market over the next ten years. Shell—which has 43,000 retail stations across around 80 countries—joins other major oil companies in investing in the Mexican fuel market.
“In addition to Mexico, Shell is investing in several other high-growth markets – such as India, China, Indonesia and Brazil – as part of its expansion strategy for the next decade,” Shell said in a statement last week.
“Shell will be part of leading the de-carbonizing of the energy system. We have to accept that is the way the world is going,” Abbott told Reuters in the interview published today.
When it reported Q2 earnings in July, Shell said that it was getting ready for a world of ‘lower forever’ oil prices. It is the oil major that expects peak oil demand sooner than most of its peers and international agencies. In addition to cutting costs at its traditional businesses, Shell has recently declared its support for renewables, pledging US$1 billion in annual investments in clean energy research and development.
“Shell’s concept for a retail station in the not-too-distant future, for example, sees conventional fuels being sold alongside hydrogen and expanded facilities for battery-electric vehicle drivers as they wait for a full charge,” Abbott said in a speech at Imperial College, London, in May this year.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.