(Reuters) – Shell (SHEL.L) is reviewing its current plan to reduce oil output by 1% to 2% per year by 2030, Chief Executive Officer Wael Sawan said in an interview with the Times published on Friday.
Sawan took office at the start of the year with a vow to boost Shell’s performance and review its operations, while backing his predecessor Ben van Beurden’s strategy to shift the company towards low carbon energy.
Sawan nevertheless indicated that Shell could revise its current goal of reducing its oil output by 2030.
“We’re reflecting on what is the right guidance to the market,” Sawan told the Times.
“I am of a firm view that the world will need oil and gas for a long time to come. As such, cutting oil and gas production is not healthy.”
Both Shell and BP reported record profits in 2022 on the back of soaring oil and gas prices following Russia’s invasion of Ukraine.
Sawan, a Lebanese-Canadian citizen who joined Shell 25 years ago, has already announced plans to restructure the energy company’s organization and launched a review of Shell’s European power retail businesses.