Shell CEO: "foolhardy" to Set Carbon Reduction Targets

Posted by Joseph Keefe
Thursday, July 5, 2018
CEO says a target will expose Shell to lawsuits; BP has also taken cautious approach on targets.
Royal Dutch Shell's boss said it would be "foolhardy" for the oil and gas producer to set hard targets to reduce carbon emissions as it risked exposing the energy giant to legal challenges.
The energy industry has struggled in recent years to find a clear path to secure its role as the world shifts from fossil fuels in order to meet the 2015 Paris climate agreement goals.
Shell Chief Executive Officer Ben van Beurden last year set out ambitions last year to halve its carbon emissions by 2050, far exceeding rivals. But the Dutch CEO resisted calls by activists and some investors to set binding targets.
"It would be somewhat foolhardy to put ourselves in a legal bind by saying these are the targets we will adopt," van Beurden said at a company event.
"Before we put ourselves at the mercy of a legal challenge, I want to make sure we are doing the right thing first."
Van Beurden, a vocal proponent of the world's need to meet the Paris goals, urged investors to trust him.
"You have to believe us that setting an ambition, sticking my neck out, my personal reputation, the reputation of the company, is a big enough incentive to get it right," he told reporters.

LAWSUITS
Oil companies have faced a growing number of legal challenges over climate change in recent years.
On Monday, the U.S. state of Rhode Island sued several major oil companies, including Exxon Mobil Corp , Shell and BP , accusing them of contributing to climate change that is damaging infrastructure and coastal communities.
BP this year announced plans to keep carbon emissions from its operations flat until 2025. But BP CEO Bob Dudley echoed van Beurden's concerns at the company's annual general meeting in May and refused to disclose details of the plan.
"You want to get us to make statements here in front of you that you can document that will lead to a class action," Dudley said in response to a question from a shareholder.
Shell spends the most among the world's top oil and gas companies on low-carbon energies, investing up to $2 billion per year in renewables and clean fuel technology, out of a total spending budget of $25 billion to $30 billion per year.
"It is more sensible to say we will go faster than society, we will catch up with society on its way to meeting Paris," van Beurden said on Thursday.
"It is a very clear ambition, we will articulate this ambitions in steps as we go along the way. We will be totally transparent."

Reporting by Ron Bousso  

Categories: Contracts Energy Finance Fuels & Lubes Government Update Legal

Related Stories

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Seatrium Secures ABS Backing for Deepwater FPSO Design

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Norwegian Oil Investment Will Peak in '25

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com