Fossil fuel company Royal Dutch Shell said in the news conference that gas investments remain to be “legitimate” despite climate concerns, says ABS-CBN. Shell CEO Ben van Beurden foresees opportunities for larger yields from oil and gas investments in the coming decades.
Shell and other key players in the fossil fuel industry are exercising caution when it comes to investing their capital as “the outlook for oil prices and demand remains unclear.” In doing so, it focuses on projects that can yield profits at $20 to $30 a barrel price range. These new projects are thought to “emit relatively low greenhouse emissions.”
Comparatively, oil is currently traded at $60 per barrel.
“Demonization” of fossil fuel
While he predicts greater yields for the industry, van Beurden said that the “demonization” of oil and gas is concerning. He said that some stockholders might bail out on Shell in light of the various environmental and climate groups campaigning against fossil fuels. According to him, these claims are “unjustified” and can result in the company’s business model becoming “unsustainable.”
Ben van Beurden said that his concern is based on the “continued pressure on [the] sector.” He also called environmental and climate concerns an “unhealthy trend.”
The supplier of 3% of the globe’s energy, van Beurden remarked that arguments against fossil fuel are misleading. These “red herrings” claim that reserves are going to be “economically unviable, or stranded, in the future.” However, the CEO said that “a lack of investment in fossil fuel projects could lead to a supply shortage” and price hikes.
Andy Rowell from Common Dreams noted that “Shell still cared more about its shareholders than it does about society.” Rowell also cited evidence of the “crisis” and that there is “mounting evidence” that drilling for oil and using it is no longer sustainable.