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Strategy update: Shell details roadmap for transition

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16 February 2021

Strategy update: Shell details roadmap for transition

Report summary

Shell delivered its ‘Powering Progress’ strategy update in February. The broad framework for capital and carbon are unchanged, but SD21 added depth, context and a wealth of guidance. We now have a clearer picture of how Shell plans to deliver its strategy, and what the business will look like ten years from now. In this note, we explore the key guidance and messages emerging from SD21, covering investment, returns, volume targets, the customer-first model, low carbon fuels and the net-zero ambition.

Table of contents

  • Executive summary
    • 1. Investment: poised to rise; shifting to Growth businesses
    • 2. Returns: clear expectations for risk adjusted returns
    • Returns expectations for Upstream and Integrated Gas set a high bar
    • 3. Oil and gas production: holding flat to 2030
    • Portfolio management will be required
    • High impact exploration continues
    • 4. Integrated Power: a unique, asset-light strategy
    • Customer-first
    • 5. Transition milestones: quantifying the shift
    • 6. Carbon: new interim targets and a shift in messaging
    • New net intensity measures and new interim aims

Tables and charts

This report includes 8 images and tables including:

  • Shell's guidance for cash capex
  • Shell guidance for annual cash capex to 2025, low to high end of range, by theme
  • Shell’s guidance for return expectations by business
  • Shell Pre-FID portfolio: WoodMac modelling vs. Shell hurdle rates and expected average IRR
  • WoodMac base production forecast vs. Shell guidance for liquids and gas
  • Shell’s ‘customer-first’ Renewables and Energy Solutions strategy
  • Shell’s guidance on 'tools for transition' milestones
  • Shell’s guidance on carbon targets

What's included

This report contains:

  • Document

    Strategy Update Shell Details Roadmap For Transition FINAL

    PDF 1.62 MB