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Page added on April 19, 2018

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80% of Shell’s oil and gas reserves will be produced before 2030

Geology

The future of oil and gas across the world is coming under intense pressure following reports by Shell, which plans to empty reserves by over 80 per cent in the next 12 years.

The report, hinged on the implications of climate change, came at a time when energy experts were insisting that unless countries drastically cut greenhouse gas emissions by moving away from fossil fuels, climate change would remain inevitable.

While oil majors are already cutting back on exploration activities in Nigeria, the decision by Shell indicated that keeping large part of oil and gas reserves in the ground would be risky.

The Shell Nigeria Exploration and Production Company (SNEPCo) is a key player in the Nigeria oil and gas industry. It pioneered Nigeria’s deep-water oil and gas production at the Bonga field, a project that increased Nigeria’s oil capacity by over 10 per cent when output began in 2005.At full output, Bonga has the potential to add more than 200,000 barrels of crude oil and 150 million standard cubic feet of gas to Nigeria’s daily production.

The report, called the Shell Energy Transition Report, revealed the company’s transition plan from fossil fuels to sustainable energy.

According to the report, about 80 per cent of all oil and gas reserves of the company will be produced before 2030.

Energy analysts at the Grantham Institute of Climate Change and the Environment at Imperial College London and Carbon Tracker think tank had earlier said oil would reach its peak by 2020 and cut supply to the market by two million barrels a day by 2025, the same volume that caused the oil price collapse in 2014 and 2015.

Shell said: “We come to the conclusion that there is a low risk that Shell will have ‘stranded assets’ or reserves that we will not be able to produce profitably in the medium term.”

Shell Chief Executive Officer, Ben van Beurden said in the report that the company would welcome and support the Paris climate agreement.

However, the oil major would produce oil and gas for decades, Beurden said.

He said: “We expect to continue investing in maintaining the oil and gas supply to meet the growing demand for energy in the world.”

Beurden revealed last year that the company’s investments for the new business unit New Energies would focus on sustainable energy and add about $ 2 billion per year until 2020.

While there is to drastically reduce the amount of CO₂ per unit of energy produced in 2050, Shell said it would halve CO₂ by 2050.

It also limits the financial consequences of an increasing price for CO₂.

The company plan to invest more into electricity and gain customers and root in power generation by solar, wind and gas.

naija247news.com



14 Comments on "80% of Shell’s oil and gas reserves will be produced before 2030"

  1. MASTERMIND on Thu, 19th Apr 2018 6:50 pm 

    Climate change the great ruse to cover for peak oil! LOL we have plenty of oil left we just don’t want to burn it because of global warming! duh…LOL Gimme a break! LOL

  2. Cloggie on Thu, 19th Apr 2018 7:43 pm 

    Nothing to do with “peak oil” but everything with selling the grease will you still can. Shell is a European company and they feel the pressure from the EU, governments and public to change course and change Shell into a renewable energy company:

    https://www.government.nl/latest/news/2016/12/12/dutch-consortium-to-construct-second-borssele-offshore-wind-farm

  3. Dredd on Fri, 20th Apr 2018 5:30 am 

    Life is a beach, but “Climate Change Lawsuits Are Moving Inland” because Oilfluenza, Affluenza, and Disgorgement – 3.

  4. Dredd on Fri, 20th Apr 2018 5:35 am 

    Peak oil is a “sunset law” … because the Sun will “set” you know:

    “Earth’s fate is precarious. As a red giant, the Sun will have a maximum radius beyond the Earth’s current orbit, 1 AU (1.5×1011 m), 250 times the present radius of the Sun. However, by the time it is an asymptotic giant branch star, the Sun will have lost roughly 30% of its present mass due to a stellar wind, so the orbits of the planets will move outward. If it were only for this, Earth would probably be spared, but new research suggests that Earth will be swallowed by the Sun owing to tidal interactions. Even if Earth would escape incineration in the Sun, still all its water will be boiled away and most of its atmosphere would escape into space.”

    (The Life and Death of Bright Things).

  5. Go Speed Racer on Fri, 20th Apr 2018 6:45 am 

    Well Mr. Dredd,
    Every 100 Million years, the sun gets 1% brighter.
    In a Billion years, the sun is 10% brighter.

    That’s actually way too much for life as we know it, because there will be a greenhouse effect driven by water vapor.

    In about 100 Million years, figure complex animal life will be toast.

    It will take 1 billion years to turn Earth into a ‘hot rock’ but everybody will be long-gone by then.

    However the Republicans will probably have
    destroyed the Earth within about 20 years
    so it doesn’t really matter what the sun
    is doing.

  6. Go Speed Racer on Fri, 20th Apr 2018 6:46 am 

    http://www.sciencemag.org/news/2014/01/earth-wont-die-soon-thought

  7. Go Speed Racer on Fri, 20th Apr 2018 7:02 am 

    I dont believe humanity is smart enough to solve any planetary-level problems.

    For example we could put tinfoil reflectors into space, to correct that 10% excess brightness. And get another billion years habitability.

    But nobody will be bothered. The Earth will go the ‘hot rock’ route no more life in 100 million years.
    If humanity was intelligent, it could be moved out to 1 billion years w/o difficulty.

    Unfortunately instead of Albert Einsteins
    to be our leaders, we have creeps like this:
    https://oneway2day.files.wordpress.com/2016/03/romney-trump.jpg

    You won’t see them realizing its time to put up a solar shield into a LaGrange point.

  8. jawagord on Fri, 20th Apr 2018 8:58 am 

    “Shell uses scenarios to stretch our thinking and consider events that may only be remotely possible.”

    Not surprising that Shell would expect to produce 80% of current proved oil and gas reserves by 2030, that’s business as usual for conventional oil and gas companies. What’s not being said is Shell will continue to explore and add to proven reserves every year until economic signals tell them not to.

    https://www.shell.com/energy-and-innovation/the-energy-future/shell-energy-transition-report/_jcr_content/par/toptasks.stream/1523888852407/bcc80b0df0bd68496edfadb657e94c13e5be02aeec508cd86fd55bea41bedd4b/shell-energy-transition-report-web.pdf

  9. The last drop on Fri, 20th Apr 2018 9:02 am 

    Shell’s burning off the reserves ASAP because of climate change and they don’t wish to leave it in the ground. Pretzel logic. In order to save the village we need to destroy it…
    MM some ruse, Shell knew way back in the 1980s
    by their OWN scientists the risks of climate change.

    Shell Knew Fossil Fuels Created Climate Change Risks Back in 1980s, Internal Documents Show
    A trove of documents shows the oil company’s scientists urged its leaders to heed the warnings. That could now play into lawsuits over global warming
    ternal company documents uncovered by a Dutch news organization show that the oil giant Shell had a deep understanding, dating at least to the 1980s, of the science and risks of global warming caused by fossil fuel emissions.
    They show that as the company pondered its responsibility to act, Shell’s scientists urged it to heed the early warnings, even if, as they said, it might take until the 2000s for the mounting evidence to prove greenhouse gases in the atmosphere were causing unnatural climate change.
    “With the very long time scales involved, it would be tempting for society to wait until then before doing anything,” company researchers wrote in a 1988 report based on studies completed in 1986. “The potential implications for the world are, however, so large that policy options need to be considered much earlier. And the energy industry needs to consider how it should play its part.”
    Otherwise, a team of Shell experts said, “it could be too late to take effective countermeasures to reduce the effects or even to stabilize the situation

    Oh well, it’s always about the $$$money, honey.

  10. Dredd on Fri, 20th Apr 2018 10:26 am 

    Go Speed Racer on Fri, 20th Apr 2018 6:45 am,

    Indeed.

    I am reminded of the book “Unsafe At Any Speed” …

    (The Tenets of Ecocosmology).

  11. Kat C on Fri, 20th Apr 2018 11:24 am 

    Climate change is no ruse. The only question about the race to the finish is which will happen first collapse from the false economy, peak oil, climate change or maybe WWIII. Humans run on earth is over unless some benign aliens step in to save us from ourselves.

    http://arctic-news.blogspot.com/2018/04/heat-storm.html

    “Arctic sea ice extent has been at a record low for the time of year for most of 2018, as illustrated by above image. In 2012, extent went below 3.4 million km². The question is what minimum 2018 extent will be. Arctic sea ice could disappear altogether in 2018.”

  12. Antius on Fri, 20th Apr 2018 12:29 pm 

    Peak oil supply is no more than 1 recession away. When the global debt bubble bursts (and it soon will) there will no longer be enough finance to support the expansion of expensive non-conventional oil or the ability for consumers to afford it.

    https://ourfiniteworld.com/2018/04/19/why-oil-prices-cant-rise-very-high-for-very-long/

    The cost of oil production keeps rising, along with the amount of debt needed to finance new developments in shale and deepwater oil. Yet, there is a definite ceiling to what consuming economies can afford to pay, because there is an energy intensity to all GDP. For this reason, oil producers are slowly going bankrupt.

    Bullshit artists may be able to make it look like peak demand and it will be. Peak demand for oil that is no longer affordable, not because we are all driving fancy electric cars, but because we no longer earn enough to afford it, at least not in the profligate ways that we were using it before.

  13. Cloggie on Sat, 21st Apr 2018 7:00 am 

    follow-this is a club of private Shell share-holders who are pushing for Shell to become a renewable energy company.

    In the light of the upcoming Shell shareholders meeting something unique has happened: large Dutch insurer Aegon (€ 315 billion euro) supports the goal of follow-this. Aegon wants Shell to abide to the Paris climate accords.

    http://www.wattisduurzaam.nl/6076/energie-opwekken/fossiel/shell-zelf-nog-klaar-om-duurzaam-voorbeeld-total-volgen/

    https://follow-this.org/

  14. Shortend on Sat, 21st Apr 2018 9:28 am 

    Sure it will, just like BP, Beyond Petroleum
    Just a Public Relations gimmick to silence those rabble stock holders. BTW, one can purchase one share of stock and be an investor, attend the annual shareholders meeting and propose such a renewal energy company….
    Exxon Mobile even has TV commercials that suggest the same…as pie in the sky BS.

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