In an effort to halve its carbon emissions by the year 2050, Royal Dutch Shell will ensure it produces triple the amount of natural gas compared to oil, CEO Ben van Beurden said during Houston’s ongoing CERAWeek.
“Over time, this net carbon footprint ambition will transform our company’s product mix,” van Beurden said.
The company’s targets aim to lower emissions from its own operations and the burning of fossil fuels by its customers. Shell will also begin selling energy from its wind farms to offset the carbon output of its hydrocarbon business, the CEO said.
Another initiative will charge customers at Shell fueling stations between 1 to 2 cents for a tree planting program around the world.
Gas production still produces sizeable amounts of methane, a particularly potent greenhouse gas contributing to rising global temperatures. The process of producing natural gas will also need to be made environmentally friendly for Shell’s transformation project to have its intended effects on the climate.
Shell is currently the world’s top liquefied natural gas trader, producing 3.7 million barrels of oil equivalent a day—half of which is natural gas. Shell-Integrated Gas currently possesses the world’s largest fleet of dedicated LNG vessels, some 70 in number, and a global facility footprint unmatched by any other company.
Shell has been expanding its energy footprint far beyond its traditional base of hydrocarbons extraction. Recent developments include the acquisition of First Utility in Britain. Moving from pure upstream energy producer to last-mile electricity distributor, Shell now serves over 800,000 homes in the United Kingdom.
Shell also has a significant real estate footprint across the U.K and Western Europe through its branded fueling stations. There, it is rolling out fast EV charging through its acquisition of New Motion in 2017.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…