Insight
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
-
Shell details roadmap for transition
- 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:
Other reports you may be interested in
22 September 2020
Strategy update: 'bp week' – selling the vision
Insight
Strategy update: 'bp week' – selling the vision
Three days, +10 hours of content, a dozen presenters - what did we learn?
$1,35013 February 2020
Strategy Update: Lundin Capital Markets Day 2020
Insight
Strategy Update: Lundin Capital Markets Day 2020
The highlight of Lundin Petroleum’s strategy day was the unveiling of a decarbonization roadmap.
$1,35029 May 2020
Australia drafts technology roadmap to lower emissions but implementation is key
Insight
Australia drafts technology roadmap to lower emissions but implementation is key
A market mechanism is essential to accelerate the transition
$1,050
