During the corona pandemic, global CO2 emissions fell massively.
What is good for the environment is bad for the oil industry. Like other oil giants, Shell has previously announced job cuts, seven to nine thousand jobs will be cut from 2022, saving two and a half billion dollars annually.
„We need to become a simpler, leaner and more competitive organization that is faster and can cater to its customers. If we want to be successful as an integral part of a society moving towards zero CO2 emissions, now is the time to get started.“
Ben van Beurden – CEO, Royal Dutch Shell
The oil companies are under pressure, thanks to the initiatives against climate change, there is a global move towards CO2-neutral energy sources. The oil dinosaurs have recognized that they have to adapt – and are heading for the low-margin business with renewable energies, which by their standards is low.
BP cut its dividend and recently announced it would cut 10,000 of its 70,000 jobs worldwide.
Shell’s plans show how serious the move is: of the current 17 refineries, fewer than 10 are to remain. If the they want to be successful in a CO2-neutral economy, change is the only possibility for them.