A large display from the environmental group Fossil Free London is seen during a climate protest in London on April 24, 2023.
In 'Climate-Wrecking' Reversal, Shell Ditches Plans for Oil Production Cut and Hikes Dividend
"It will always be profit over people and planet for polluters," said one campaigner. "Shell simply cannot be trusted—with either their own meager targets or our futures."
Shell announced Wednesday that it is raising payouts to wealthy shareholders and scrapping plans to cut oil production by up to 2% annually, a move that environmental groups said lays bare the futility of relying on fossil fuel corporations to voluntarily curb their climate-destroying activities.
The London-based company, which more than doubled its annual profits last year, said in a press release that it now intends to "achieve cash flow longevity" by keeping oil production stable until 2030 and boosting gas production, even as scientists say a rapid phaseout of fossil fuels is necessary to avert global climate destruction.
"It is unacceptable that Shell is betting on even more short-term returns to appease shareholders," said Sjoukje van Oosterhout, Climate Case Shell's lead researcher. "Shell is now throwing in the towel on reducing oil production and even scaling up gas production."
Shell also announced Wednesday that it is hiking its dividend by 15%, a change that's set to take effect this quarter. In an additional gift to shareholders, the company said it plans to buy back at least $5 billion of its own stock in the second half of 2023.
"Record profits, off the back of the energy crisis, should be boosting up green investment," Jonathan Noronha-Gant, a senior campaigner at Global Witness, said in a statement Wednesday. "Instead it's shareholder pay-outs and a doubling down on climate-wrecking fossil fuels."
Shell had previously said its oil and gas production would fall by 1-2% each year through 2030. But as Bloomberg reported, Shell justified the newly announced shift by claiming it "achieved its initial output-reduction plan—announced in 2021 amid a focus on cutting carbon emissions—faster than anticipated."
Noronha-Gant called Shell's announcement a "climate bombshell" that "exposes the hollowness behind the setting of such a target."
"It will always be profit over people and planet for polluters," Noronha-Gant said Wednesday. "Shell simply cannot be trusted—with either their own meager targets or our futures."
Others responded with similar outrage. Climate scientist Bill McGuire wrote on Twitter that Shell CEO Wael Sawan "knows exactly what the consequences of this decision are."
"People will die—are already dying," McGuire tweeted. "I want to see him jailed—along with all the other CEOs who have been unequivocally complicit in crimes against humanity. And so should you."
Shell's announcement comes weeks after Carbon Brief released an analysis highlighting the oil giant's tacit admission that limiting warming to 1.5°C by the end of the century means an "immediate end to fossil fuel growth."
"Shell had previously claimed that oil and gas production could rise for another decade, even as warming was limited to 1.5°C," Carbon Brief observed. "The dramatic shift in its new 'Energy Security Scenarios' is not explicitly acknowledged, but... is hidden in plain sight."
"The immediate end to fossil fuel growth in Shell’s new 1.5°C scenario marks a dramatic shift from its earlier work, which had squared the circle between limiting warming to 1.5°C and continuing to expand oil and gas production by invoking implausibly-large forest expansion," Carbon Brief added.
Shell insisted Wednesday that it is "aiming to achieve near-zero methane emissions by 2030" and "net-zero emissions by 2050," but research released earlier this week showed that such commitments are often meaningless because companies rarely outline specific steps they plan to take to achieve their stated targets.
Last month, Friends of the Earth Netherlands published a report accusing Shell of overstating its spending on renewable energy solutions by including "the sale of flowers and sandwiches at its gas stations" in the total, along with "biofuels with a high carbon footprint."
"The company continues to contribute to catastrophic climate change," the group concluded.
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
Shell announced Wednesday that it is raising payouts to wealthy shareholders and scrapping plans to cut oil production by up to 2% annually, a move that environmental groups said lays bare the futility of relying on fossil fuel corporations to voluntarily curb their climate-destroying activities.
The London-based company, which more than doubled its annual profits last year, said in a press release that it now intends to "achieve cash flow longevity" by keeping oil production stable until 2030 and boosting gas production, even as scientists say a rapid phaseout of fossil fuels is necessary to avert global climate destruction.
"It is unacceptable that Shell is betting on even more short-term returns to appease shareholders," said Sjoukje van Oosterhout, Climate Case Shell's lead researcher. "Shell is now throwing in the towel on reducing oil production and even scaling up gas production."
Shell also announced Wednesday that it is hiking its dividend by 15%, a change that's set to take effect this quarter. In an additional gift to shareholders, the company said it plans to buy back at least $5 billion of its own stock in the second half of 2023.
"Record profits, off the back of the energy crisis, should be boosting up green investment," Jonathan Noronha-Gant, a senior campaigner at Global Witness, said in a statement Wednesday. "Instead it's shareholder pay-outs and a doubling down on climate-wrecking fossil fuels."
Shell had previously said its oil and gas production would fall by 1-2% each year through 2030. But as Bloomberg reported, Shell justified the newly announced shift by claiming it "achieved its initial output-reduction plan—announced in 2021 amid a focus on cutting carbon emissions—faster than anticipated."
Noronha-Gant called Shell's announcement a "climate bombshell" that "exposes the hollowness behind the setting of such a target."
"It will always be profit over people and planet for polluters," Noronha-Gant said Wednesday. "Shell simply cannot be trusted—with either their own meager targets or our futures."
Others responded with similar outrage. Climate scientist Bill McGuire wrote on Twitter that Shell CEO Wael Sawan "knows exactly what the consequences of this decision are."
"People will die—are already dying," McGuire tweeted. "I want to see him jailed—along with all the other CEOs who have been unequivocally complicit in crimes against humanity. And so should you."
Shell's announcement comes weeks after Carbon Brief released an analysis highlighting the oil giant's tacit admission that limiting warming to 1.5°C by the end of the century means an "immediate end to fossil fuel growth."
"Shell had previously claimed that oil and gas production could rise for another decade, even as warming was limited to 1.5°C," Carbon Brief observed. "The dramatic shift in its new 'Energy Security Scenarios' is not explicitly acknowledged, but... is hidden in plain sight."
"The immediate end to fossil fuel growth in Shell’s new 1.5°C scenario marks a dramatic shift from its earlier work, which had squared the circle between limiting warming to 1.5°C and continuing to expand oil and gas production by invoking implausibly-large forest expansion," Carbon Brief added.
Shell insisted Wednesday that it is "aiming to achieve near-zero methane emissions by 2030" and "net-zero emissions by 2050," but research released earlier this week showed that such commitments are often meaningless because companies rarely outline specific steps they plan to take to achieve their stated targets.
Last month, Friends of the Earth Netherlands published a report accusing Shell of overstating its spending on renewable energy solutions by including "the sale of flowers and sandwiches at its gas stations" in the total, along with "biofuels with a high carbon footprint."
"The company continues to contribute to catastrophic climate change," the group concluded.
- 'Shell Is Richer Because We're Poorer': UK Oil Giant Sees Record $40 Billion Profit ›
- As Planet Burns, Shell Reports $5 Billion in Profits and Plans to Ramp Up Fossil Fuels ›
- Shell 'Doubled Down on Oil' in 2023 as Planet Burned: Analysis ›
- 'An Affront to the World': Shell Posts Billions in Profits as Planet Burns | Common Dreams ›
Shell announced Wednesday that it is raising payouts to wealthy shareholders and scrapping plans to cut oil production by up to 2% annually, a move that environmental groups said lays bare the futility of relying on fossil fuel corporations to voluntarily curb their climate-destroying activities.
The London-based company, which more than doubled its annual profits last year, said in a press release that it now intends to "achieve cash flow longevity" by keeping oil production stable until 2030 and boosting gas production, even as scientists say a rapid phaseout of fossil fuels is necessary to avert global climate destruction.
"It is unacceptable that Shell is betting on even more short-term returns to appease shareholders," said Sjoukje van Oosterhout, Climate Case Shell's lead researcher. "Shell is now throwing in the towel on reducing oil production and even scaling up gas production."
Shell also announced Wednesday that it is hiking its dividend by 15%, a change that's set to take effect this quarter. In an additional gift to shareholders, the company said it plans to buy back at least $5 billion of its own stock in the second half of 2023.
"Record profits, off the back of the energy crisis, should be boosting up green investment," Jonathan Noronha-Gant, a senior campaigner at Global Witness, said in a statement Wednesday. "Instead it's shareholder pay-outs and a doubling down on climate-wrecking fossil fuels."
Shell had previously said its oil and gas production would fall by 1-2% each year through 2030. But as Bloomberg reported, Shell justified the newly announced shift by claiming it "achieved its initial output-reduction plan—announced in 2021 amid a focus on cutting carbon emissions—faster than anticipated."
Noronha-Gant called Shell's announcement a "climate bombshell" that "exposes the hollowness behind the setting of such a target."
"It will always be profit over people and planet for polluters," Noronha-Gant said Wednesday. "Shell simply cannot be trusted—with either their own meager targets or our futures."
Others responded with similar outrage. Climate scientist Bill McGuire wrote on Twitter that Shell CEO Wael Sawan "knows exactly what the consequences of this decision are."
"People will die—are already dying," McGuire tweeted. "I want to see him jailed—along with all the other CEOs who have been unequivocally complicit in crimes against humanity. And so should you."
Shell's announcement comes weeks after Carbon Brief released an analysis highlighting the oil giant's tacit admission that limiting warming to 1.5°C by the end of the century means an "immediate end to fossil fuel growth."
"Shell had previously claimed that oil and gas production could rise for another decade, even as warming was limited to 1.5°C," Carbon Brief observed. "The dramatic shift in its new 'Energy Security Scenarios' is not explicitly acknowledged, but... is hidden in plain sight."
"The immediate end to fossil fuel growth in Shell’s new 1.5°C scenario marks a dramatic shift from its earlier work, which had squared the circle between limiting warming to 1.5°C and continuing to expand oil and gas production by invoking implausibly-large forest expansion," Carbon Brief added.
Shell insisted Wednesday that it is "aiming to achieve near-zero methane emissions by 2030" and "net-zero emissions by 2050," but research released earlier this week showed that such commitments are often meaningless because companies rarely outline specific steps they plan to take to achieve their stated targets.
Last month, Friends of the Earth Netherlands published a report accusing Shell of overstating its spending on renewable energy solutions by including "the sale of flowers and sandwiches at its gas stations" in the total, along with "biofuels with a high carbon footprint."
"The company continues to contribute to catastrophic climate change," the group concluded.
- 'Shell Is Richer Because We're Poorer': UK Oil Giant Sees Record $40 Billion Profit ›
- As Planet Burns, Shell Reports $5 Billion in Profits and Plans to Ramp Up Fossil Fuels ›
- Shell 'Doubled Down on Oil' in 2023 as Planet Burned: Analysis ›
- 'An Affront to the World': Shell Posts Billions in Profits as Planet Burns | Common Dreams ›