Shell, one of the world’s largest oil and gas companies, recently reported a record high in annual profits, with earnings almost doubling compared to the previous year. The company attributed this increase in profits to a combination of factors, including higher oil prices and increased production from its liquified natural gas (LNG) division.
According to the company’s earnings report, Shell’s net income for the year was $21.4 billion, which is up from $13.7 billion in the previous year. This marks the highest profit for the company in 115 years of operation. The strong performance of the LNG division was a key driver of this growth, with profits in this division rising by 68% compared to the previous year.
Despite this positive news, Shell is facing criticism over its commitment to reducing greenhouse gas emissions and transitioning to cleaner energy sources. A complaint has been filed against the company in the US, accusing it of “greenwashing” its commitment to sustainability and claiming that its investments in renewable energy are still dwarfed by its continued focus on oil and gas production.
In response to these criticisms, Shell CEO Ben van Beurden stated that the company is fully committed to the transition to a lower-carbon future and is investing heavily in renewable energy. The company has set a goal to become a net-zero emissions business by 2050 and has outlined a plan to achieve this target, including investments in wind, solar, and hydrogen power.
However, some experts remain skeptical about Shell’s commitment to sustainability, citing its continued focus on oil and gas production and its lack of concrete action on reducing emissions. Some have also raised concerns about the financial risks posed by the transition to cleaner energy, with the company’s earnings report indicating that the shift towards renewables could lead to lower profits in the short term.
Despite these challenges, Shell remains optimistic about its future and is confident in its ability to navigate the transition to a lower-carbon future. The company’s strong performance in the past year has demonstrated its ability to adapt to changing market conditions and capitalize on new business opportunities. With continued investment in renewable energy and a commitment to reducing greenhouse gas emissions, Shell aims to maintain its position as a leader in the energy sector for many years to come.