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Shell Hits Its Own Peak Oil, Plans to Reduce Output

According to Shell’s own data, the company’s oil production peaked in 2019 and is expected to decline up to 2% every year. The company plans to cut its production of traditional fuels such as diesel and gasoline by 55% in the next decade and shift to more low-carbon power. At the same time, the company said it would double the amount of electricity it sells and roll out thousands of new electric-vehicle charging points. Experts say that a pivot to low-carbon energy would require a much larger investment in areas that major oil companies don’t necessarily have a competitive advantage and that have lower returns. Renewables projects typically generate returns of around 10%, compared with the traditional 15% targeted on oil-and-gas projects. | Read more