Shell plans to reduce costs and increase shareholder returns by cutting green projects

In a significant shift in strategy, Shell has announced plans to drastically increase gas production while reducing its investments in low-carbon businesses. This change is part of a broader corporate transformation designed to make the company simpler, more resilient, and more competitive in the oil and gas sector. By 2030, Shell aims to have only ten percent of its capital allocated to low-carbon initiatives. The company's CEO, Wael Sawan, has indicated that Shell's operational focus will increasingly be on delivering sustainable financial returns, which includes cutting annual expenses by more than $7 billion by 2028 compared to 2022. To achieve these goals, Shell is targeting a growth rate of about two percent in gas production annually while keeping oil output stable, resulting in an overall growth of one percent in oil and gas production each year until 2030. Furthermore, as part of its strategic overhaul, the company also foresees selling off or closing segments of its chemicals business, thereby shifting resources to promote LNG, which is expected to grow by four to five percent annually. Meanwhile, in Alaska, state officials are actively seeking South Korean investors to finance energy projects, notably a major LNG project that could cost around $44 billion, highlighting the ongoing global search for energy investments amidst shifting priorities in energy production and sustainability.