Shell is considering selling assets in the largest oil field in the United States, Reuters reports, highlighting pressure to focus on low-carbon investments.

Shell is considering selling assets in the largest oil field in the United States, Reuters reports, highlighting pressure to focus on low-carbon investments.

Ben van Beurden, CEO of Royal Dutch Shell. Reuters

  • Reuters reported on Sunday that Royal Dutch Shell is reviewing its interests in the Perm Basin.

  • Reuters reported that this could mean that Shell sells some or all of its 260,000 acres in the oil field.

  • Shareholders and activists are pressing oil companies to reduce carbon emissions.

  • See more stories on the Business Insider page.

The oil giant Royal Dutch Shell is considering withdrawing (part of) its assets in the Permian Basin, Reuters reported on Sunday, highlighting the pressure Shell and its competitors face to focus on transitioning to a carbon-neutral economy and combating climate change in the coming decades.

Reuters, citing informed sources, reported that the Netherlands-based company owns about 260,000 acres in the oil field in the southern United States, which is the largest in the country, and its value may reach 10 billion dollars. Shell declined to comment to Reuters.

Exploration and production director Wael Sawan said in a meeting with analysts on May 25 that Shell produces between 160 and 170,000 barrels of oil per day in the Perm Basin. Sawan said the company reduced its production from Perm by about 20,000 barrels per day last year in an effort to save money.

Shareholders and activists have increasingly called on oil companies such as Shell, ExxonMobil and Chevron to reduce carbon dioxide emissions in recent years. We’ve gotten louder and more successful this year.

Investors’ efforts to lobby for change You have reached a historic moment this spring When Exxon shareholders chose: Facilities Three new directors are sitting on the oil giant’s board in an effort to speed up the transition to cleaner energy.

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Shareholder proposals related to the environment and society have received record support this year, according to a report released last week by RBC Capital Markets analysts Sarah Mahaffey and Laurie Calvasina. A quarter of these offers in US companies had majority support, up from just 5% in 2019.

Shell set a plan earlier this year with goals such as reducing the carbon intensity of the energy products it sells by at least 6% by 2023 and 20% by 2030, compared to 2016 levels.

But the targets were challenged last month when a Dutch court ordered Shell to speed up 45% of carbon dioxide emissions cuts by 2030 compared to 2019. The company called the ruling “disappointing” and said it would focus on its efforts to reduce carbon dioxide emissions. .

Shell, led by CEO Ben van Beurden, said it also believes that its annual oil production peaked in 2019 and is likely to decline 1% to 2% annually through 2030.

“The Permian is really part of this prime location simply because we see the walking space there, and we really think it’s a high-quality place, as well as our high-quality operation there,” Van Beurden said during a call in February, referring to the company’s oil strategy. “That way, we keep investing in it until it doesn’t actually make sense.”

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