Following the global collapse of oil demand, Shell have hatched plans for a huge company-wide transition towards renewable energies. This is inline with the 113-year old company’s ambitions of achieving net-zero by 2050.
Shell have begun the process by setting up a specialist internal project team that will be working behind closed doors to present a comprehensive review of Shell and how they can adapt to a greener future and emerge stronger. It is not yet decided whether Shell will create a separate, specially purposed business unit focusing on renewable energy or repurpose a branch within the group. Also being targeted is electricity production and distribution and hydrogen alongside the petrochemical business unit.
Some are suggesting that the restructuring may involve substantial job cuts and it is expected that the headcount in the UK, the Netherlands, the US and Canada will reduce significantly.
Shell are not the first large oil and gas company to begin a redesign as Total, BP and Eni are all making moves in the renewable industry. Eni are aiming to become “a leader in the energy transition” and dominate the renewable market.
Electricity distribution will play an integral role as part of the new business model for Shell and they have already started seeking out a world-leading expert in the sector. For longer-term projects, it is now expected they will receive more support as they are in the field of energy transition.
In the near future it is expected that Shell will mostly focus on sectors such as offshore wind, solar and power storage which has thus far been completed via Shells new energies unit, currently part of the integrated gas division. The future looks green for Shell and it is expected they will continue making big strides within the market.
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by Elise Reid