Shell reaches peak oil production

TusharK · 19th February 2021, 11:26

Royal Dutch Shell has stated that it reached peak oil production in 2019. This means oil production will only drop from here onwards.

Shell reaches peak oil production-shellservicestation.jpg

The company believes that its carbon emissions peaked in 2018, which are estimated to be 1.7 gigatonnes per annum.

Shell has set short-term targets to reduce its carbon footprint. By 2023, the company aims to reduce its net carbon intensity by 6-8%, 20% by 2030, 45% by 2035 and 100% by 2050, using a baseline of 2016.

Shell will seek to have access to an additional 25 million tonnes a year of carbon capture and storage (CCS) capacity by 2035. At present, the company is part of three CCS projects - Quest (Canada), Northern Lights (Norway) and Porthos (The Netherlands). These have a total capacity of 4.5 million tonnes.

Shell also plans to offset emissions of around 120 million tonnes a year by 2030 by using nature-based solutions (NBS).

Link to Team-BHP News

Archisman · 19th February 2021, 13:31

Being an Oilman for nearly 13 years, I have a few points on Peak Oil production

The very concept of Peak Oil is a bit misnomer. Every few years experts have pointed out the looming peak oil and every year we have been adjusting the peak oil production a bit further down.
Shell itself is a behemoth. One of the largest IOC (independent Oil Company) if not the largest, Shell has been slowly scaling down its operations across the world. Some of it is due to global economics but also a large part is due to it partnering with National Oil companies is many geographies. So yes maybe Shell by itself has reached peak oil but it continues to increase production with its partners.
A new gas or oil field in Offshore South America or Africa will change the discourse again.

But the silver lining in this news is the reduction in Carbon. That to me is the bigger news

ramki.grandhi · 19th February 2021, 13:57

Does it mean that their core business may not grow beyond this point unless they heavily invest in new areas? or new rigs?

If this gets translated to their quarter-on-quarter or year-on-year turnover being stagnant, eventually this may going to impact their stock price.

19th February 2021, 11:26	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,266 Thanked: 55,817 Times	Shell reaches peak oil production Royal Dutch Shell has stated that it reached peak oil production in 2019. This means oil production will only drop from here onwards. The company believes that its carbon emissions peaked in 2018, which are estimated to be 1.7 gigatonnes per annum. Shell has set short-term targets to reduce its carbon footprint. By 2023, the company aims to reduce its net carbon intensity by 6-8%, 20% by 2030, 45% by 2035 and 100% by 2050, using a baseline of 2016. Shell will seek to have access to an additional 25 million tonnes a year of carbon capture and storage (CCS) capacity by 2035. At present, the company is part of three CCS projects - Quest (Canada), Northern Lights (Norway) and Porthos (The Netherlands). These have a total capacity of 4.5 million tonnes. Shell also plans to offset emissions of around 120 million tonnes a year by 2030 by using nature-based solutions (NBS). Link to Team-BHP News
	(9) Thanks

19th February 2021, 13:31	#2
Archisman BHPian Join Date: Feb 2021 Location: Vadodara Posts: 43 Thanked: 176 Times	Re: Shell reaches peak oil production Being an Oilman for nearly 13 years, I have a few points on Peak Oil production The very concept of Peak Oil is a bit misnomer. Every few years experts have pointed out the looming peak oil and every year we have been adjusting the peak oil production a bit further down. Shell itself is a behemoth. One of the largest IOC (independent Oil Company) if not the largest, Shell has been slowly scaling down its operations across the world. Some of it is due to global economics but also a large part is due to it partnering with National Oil companies is many geographies. So yes maybe Shell by itself has reached peak oil but it continues to increase production with its partners. A new gas or oil field in Offshore South America or Africa will change the discourse again. But the silver lining in this news is the reduction in Carbon. That to me is the bigger news
	(4) Thanks

19th February 2021, 13:57	#3
ramki.grandhi BHPian Join Date: May 2020 Location: Bangalore Posts: 365 Thanked: 1,645 Times	Re: Shell reaches peak oil production Does it mean that their core business may not grow beyond this point unless they heavily invest in new areas? or new rigs? If this gets translated to their quarter-on-quarter or year-on-year turnover being stagnant, eventually this may going to impact their stock price.
	() Thanks