Shell To Quit Its Goal Of Lowering Oil Output: Report

Shell PLC SHEL reportedly plans to maintain or slightly increase oil output into 2030. 

This is part of CEO Wael Sawan's efforts to regain investor confidence as the energy giant struggles with low renewables return while oil and gas revenues are soaring, reports Reuters, citing company sources.

The report noted Sawan would scrap its target of reducing oil output by 1% to 2% per year at an investor event next week.

The company has largely met its goal for production cutbacks, mainly through selling oil assets such as its U.S. shale business.

Also Read: Shell Faces Criticism On Climate Change Initiatives: Report

Sawan sticks to Shell's objective of becoming a net zero emitter by mid-century.

Due to projected low returns, Shell reportedly canceled many projects in recent months, including offshore wind, hydrogen, and biofuels. The report added that it is also abandoning its European power retail companies, which were viewed as critical to its energy transition just a few years ago.

"Significant investments in oil and gas are needed just to keep production at a constant level, let alone to meet growing demand," the report quoted Sawan telling the investors at Shell's annual general meeting last month.

Price Action: SHEL shares are trading lower by 0.59% at $58.49 on the last check Friday.