Home Breaking News Shell warns cutting oil and gas production is ‘dangerous’ because the cost of living will ‘shoot up again’

Shell warns cutting oil and gas production is ‘dangerous’ because the cost of living will ‘shoot up again’

by LLB staff reporter
6th Jul 23 10:46 am

The chief executive of Shell has warned that cutting oil and gas production would be “dangerous and irresponsible” because the move to renewable energy is happening fast enough.

Wael Sawan warned that energy bills could be sent soaring again as the demand from China is increasing and Europe could see another cold winter.

Sawan told the BBC, “What would be dangerous and irresponsible is cutting oil and gas production so that the cost of living, as we saw last year, starts to shoot up again.”

He said the relocation for the FTSE 100 oil and gas giant is “not a priority for the next three years,” but he did not rule out moving the headquarters and the stock market listing to the US.

Green campaigners said that Shell’s move is “utterly destructive” by not slashing production.

A spokesman for Shell said, “Shell has already reduced its liquids production by 21% since 2019, and once we hit the stable production level we recently outlined, it will have fallen by 26%.

“That represents a greater reduction than the initial 1-2% per year cuts we set out in 2021 would have achieved by 2030.”

Speaking about the move to the US where valuations for shares are much higher he said, “There are many who question whether that valuation gap can only be bridged if we move to the US. A move of headquarters is not a priority for the next three years.”

He added: “I would never rule out anything that could potentially create the right circumstances for the company and its shareholders. Ultimately, I am in the service of shareholder value.”

Jamie Peters, head of climate at Friends of the Earth, said: “It’s no surprise that a fossil fuel company like Shell wants to continue unabated extraction of oil and gas.

“Let’s be clear, companies like Shell are fuelling both the climate crisis and the soaring cost of energy.

“They are profiting from the misery of ordinary people while destroying the planet, and they’re making a cynical case to continue locking us into the volatile fossil fuel markets that are the root cause of the energy crisis.”

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