Shell boss says blackouts are unlikely this winter — as long as weather isn’t too cold
THE boss of Shell has said blackouts are unlikely this winter — so long as the weather does not turn too cold.
In signs that the energy crisis is finally easing, CEO Wael Sawan said gas storage levels were high and there had been less demand from China than expected.
He said: “It depends how cold the winter is on whether we have challenges or not.”
Profits at the oil giant have halved to £3.9billion in the past three months as wholesale energy prices have fallen sharply.
Despite the slump, the profits were still healthy enough for Shell to go ahead with another £2.3billion share buyback and a 15 per cent increase in its dividend.
Last year the company handed £20 billion to investors, prompting criticism that it was profiteering from the war in Ukraine.
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Bosses at Shell have said they are prioritising investor returns because British oil companies are undervalued compared to their US peers, such as Exxon and Chevron.
Sawan has rowed back on commitments to cut oil production each year and instead said Shell will maintain a lower level of steady production for the rest of this decade.
However, Michael Hewson at foreign exchange broker CMC Markets said: “With Sarwan striking a much more belligerent, as well as pragmatic tone, when it comes to Shell’s production targets there is a sense that big oil has become less cowed by the political discourse over renewables as well as the threats of higher taxation that has seen the size of their tax take go up.”
Georgia Whitaker, climate campaigner for Greenpeace UK, said: “It’s galling for households to see Centrica’s profits increasing tenfold, and Shell raking in £4bn - while the cost of living crisis continues, and heatwaves and wildfires are raging on.”
