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

14 out of 20 people arrested by police in connection with the fuel heist have been charged over the theft of gas oil valued at almost S$6.5 million.

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.

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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