Exclusive: Shell launches major cost-cutting drive to prepare for energy transition

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Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters.

FILE PHOTO: A Shell oil and gas sign is pictured near Nowshera, Pakistan's northwest Khyber-Pakhtunkhwa Province Sept. 8, 2010. REUTERS/Morteza Nikoubazl/File Photo

“We had a great model but is it right for the future? There will be differences, this is not just about structure but culture and about the type of company we want to be,” said a senior Shell source, who declined to be named. Shell now wants to focus its oil and gas production on a few key hubs, including the Gulf of Mexico, Nigeria and the North Sea, the sources said.

The review, which company sources say is the largest in Shell’s modern history, is expected to be completed by the end of 2020 when Shell wants to announce a major restructuring. It will hold an investor day in February 2021. Shell’s operating costs, which include production, manufacturing, sales, distribution, administration and research and development expenses, fell by 15%, or roughly $7 billion, between 2014 and 2017.

Van Beurden said in July that Shell was on track to deliver $3 billion to $4 billion in cost savings by the end of March 2021, including through job cuts and suspending bonuses.

 

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The worst performing CEO, bought by at exorbitant price, pile up huge debts, and now piling more with this so call strategy to divert attention from collosal incompetence.

ENERGY HOUSE

Has any one informed the potus Treason is afoot with Shell Oil Climate Change just may be true? potus says NAH!

GreenpeaceUK good work?

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Exclusive: Shell launches major cost-cutting drive to prepare for energy transitionRoyal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters. Bull Bull bullish Populist chatter for the purpose of keeping the market and stock prices?
Source: Reuters - 🏆 2. / 97 Read more »

Exclusive: Shell launches major cost-cutting drive to prepare for energy transitionRoyal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters. Bull Bull bullish Populist chatter for the purpose of keeping the market and stock prices?
Source: Reuters - 🏆 2. / 97 Read more »