Shell Says Its Oil Production Has Peaked and Is Likely to Decline

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Royal Dutch Shell on Thursday made the boldest statement among its peers about the waning of the oil age, saying that its oil production had reached a high in 2019 and was now likely to gradually decline.

Shell’s “total oil production peaked in 2019,” the company said in a statement, and added that it expected a gradual decline of oil production of around 1 to 2 percent annually in coming years.

The company also said that its carbon emissions probably peaked in 2018.

Shell said it was beefing up its previously announced effort to reach net zero carbon emissions by 2050. Analysts, though, said there was little that was new in Shell’s announcement about future investments, and the company’s commitments to invest $2 billion to $3 billion a year in renewable energy like wind and solar lagged some of its peers in terms of the proportion of capital spending allocated.

“Despite the green spin, the substance would suggest a more cautious approach to renewables,” said Stuart Joyner, an analyst at Redburn, a market research firm.

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