Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Shell’s market outlook yields optimistic margins for low energy carbon future

    Shell’s market outlook yields optimistic margins for low energy carbon future

    August 2, 2020
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Shell.

    Lagos — Effuah Alleyne, a Senior Oil & Gas Analyst at GlobalData is of the view that Shell’s long-term focus lies in investing in cleaner energy solutions using a leaner restructured business model.

    Alleyne’s position follows the release of Shell’s Q2 2020 earnings, adding that: “In order to strengthen its balance sheets, Shell has implemented the common strategy of aggressively reduced capital and operating expenses, and enhanced its footing in the digital technology arena to counteract process shortfalls.

    “In a joint venture with Eneco called CrossWind, Shell was awarded a contract on July 29 for an offshore subsidy-free wind farm in the Netherlands, which will provide a low carbon power alternative to conventional oil and gas. The company also plans to reduce its refining capacity from 15 refineries to less than 10 by 2025 and will invest approximately 18% of its US$20bn budget for 2020 and 2021 to integrated gas through its LNG portfolio.

    “While Shell is moving into the future with a restructured, consolidated portfolio, its scenario for success is based on an aggressive, rebounded market. The company’s price outlook is valuated against a US$40/bbl Brent outlook in 2021, increasing US$10/bbl per year till 2023. In an environment of uncertainty, contending with demand slumps as a result of the COVID-19 pandemic, storage overflows and OPEC+ considering loosening production curtailments, Shell’s outlook is optimistic. Oil prices also directly affects the value of LNG contracts, which is part of Shell’s core business. Additionally, Shell’s capital allocation to power and generating low carbon energy is only 5% of its US$20bn budget, which does not leave much room for research and digital innovation.”

    Related News

    US oil and gas rig count falls to lowest since January – Baker Hughes

    Crude oil rebound reflects optimism over the U.S.-China dialogue

    Stakeholders hail PINL’s achievements in protecting TNP

    E-book
    Resilience Exhibition

    Latest News

    Nigeria unlocks intra-African trade with new PAPSS policy boost

    May 10, 2025

    Ahead of China-US talks, Trump says 80% tariff ‘seems right’

    May 10, 2025

    US oil and gas rig count falls to lowest since January – Baker Hughes

    May 10, 2025

    Nigeria’s Senate passes tax reform bills to boost government revenue

    May 10, 2025

    E-Call up is desirable in Onne ports – Truckers

    May 10, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.