The head of Shell, Wael Sawan, has stated that the cessation of gas and oil extraction and processing would be irresponsible and dangerous, writes the BBC.
Sawan insisted in an interview with the BBC that the world still “desperately needs oil and gas” because the move to renewables is not going fast enough to replace them. He warned that rising demand from China and a cold winter in Europe could once again push up the price of energy resources and therefore bills.
Shell’s boss has angered climate scientists who have said the company’s plans to continue producing oil at current levels are wrong. Emily Shuckburgh, a climate researcher at the University of Cambridge, said companies such as Shell should focus more on transitioning to green energy instead of “suggesting to the vulnerable that continuing to use oil and gas is in their best interests”.
Sawan replied that he respects the scientist, but does not agree with her.
“What would be dangerous and irresponsible is cutting oil and gas production
so that the cost of living, as we saw last year, starts to shoot up again.”
World leaders have pledged to get rid of fossil fuel use and switch to greener alternatives. Last year, the European Commission created a plan for how the European Union will accelerate the transition to green energy in order to reduce dependence on Russian resources.
However, many countries, such as Bangladesh and Pakistan, do not have the infrastructure in place to transition to more sustainable forms of energy. Savan said: “They took away LNG from those countries and children had to work and study by candlelight.
If we’re going to have a transition it needs to be a just transition that doesn’t just work for one part of the world.”
Claire Fyson, co-chair of climate change at the International Institute for Science and Policy, told the BBC that the idea of having to choose between relying on fossil fuels or working by candlelight is a fundamental distortion of reality.
Fatih Birol, head of the International Energy Agency, said that if governments take the climate crisis seriously, there should be no new investment in the oil, gas, and coal industries.
Shell is a company with a long history and is headquartered in Great Britain. However, Sawan pointed out that a lack of clarity and stability in energy policy and the tax system could make Great Britain unattractive to investors.
Currently, more than half of the oil and gas consumed in the UK is imported,
and the volume is expected to increase if investment is not attracted to projects in the North Sea.
Sawan highlighted the company’s warm reception at the New York Stock Exchange, where it recently held a meeting with investors and outlined plans to cut costs and boost profits. During the meeting, the officials created the feeling that oil and gas companies are supported more in the US than in the UK. The Shell executive said that Americans value companies that can deliver much-needed energy resources.
The head of the oil company does not rule out the possibility of moving Shell’s headquarters to the United States but added that it is not the company’s priority in the next three years.
The move of Britain’s most valuable company to the US would seriously damage the prestige of the British financial sector and lead to widespread redundancies in the sector.
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