Shell Reviews Sale of Texas Assets
Royal Dutch Shell reviews its holdings in the largest US oil field of Texas for a potential sale, marking a pivoting point in its shift away from fossil fuels in light of growing pressure to reduce carbon emissions.
The sale could be for part of Shell's position in the US Permian Basin, located mostly in Texas, which accounted for around 6% of the company's total oil and gas output last year. The holdings could be worth more than $10 billion.
Any retreat from the Permian would mark a major shift from an area previously identified as one of nine core basins in its energy transition strategy to net-zero carbon emissions by 2050. Shell's energy transition plan aims to reduce oil and gas output gradually and boost spending on renewables, hydrogen and low-carbon technologies. The company plans to reduce oil output by 1% to 2% per year by 2030 through lower investment and disposals. It will increase spending on renewables and low carbon technologies to up to 25% of its overall budget by 2025.
There is so far no guarantee, however, that Shell would end up striking a deal for the assets.
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