Oil giant Royal Dutch Shell will write down the value of its assets by up to $22bn after lowering its mid and long-term outlook on oil and gas prices.
The company revised down average long-term refining margins by around 30% and expects Brent crude to average $35 a barrel this year and $40 a barrel next year, with it rising to $60 by 2023.
The world’s largest fuel retailer also said that it expected a 40 per cent fall in fuel sales in the second quarter owing to a sharp fall in consumption as a result of coronavirus-related travel restrictions around the world.
The move is part of the Anglo-Dutch company’s wide review of operations after the chief executive, Ben van Beurden, laid out plans in April to reduce greenhouse gas emissions to net zero by 2050.
Mel Evans senior oil campaigner for Greenpeace UK said, “Shell is playing catch-up with what campaigners and smart investors have been warning for years – the climate emergency is going to make oil worth less.
“It’s one thing to acknowledge that oil is less valuable, but what really matters is what Shell does next. Shell’s boss Ben van Beurden must pivot to renewable energy now to protect the future of our planet, and Shell’s future.”