Energy
Thursday, October 26th, 2023 2:11 pm EDT
Key Points
- Shell is planning to cut 200 positions in its low-carbon solutions unit in 2024 as part of its broader overhaul led by CEO Wael Sawan. These cuts come in the context of Shell’s commitment to becoming a “net-zero emissions energy business” by 2050, which requires a transition to cleaner energy solutions like hydrogen.
- While some of the affected jobs will be relocated to other divisions within Shell, an additional 130 roles will be under review during 2024. The decision to downsize is partly attributed to Shell’s failure to secure a grant from $7 billion in federal funding for hydrogen energy development, and the company is still awaiting an explanation from the Department of Energy regarding this.
- Despite these cuts, Shell is planning significant investments of $10 billion to $15 billion in low-carbon energy over the next two years. This investment will encompass various clean energy technologies, including biofuels, hydrogen, carbon capture, and electric vehicle charging. Shell is working on transitioning to cleaner energy sources while addressing criticisms and lawsuits related to its historical contributions to climate change. The shift towards clean energy in the oil industry is a critical consideration for major companies like Shell, especially as some competitors, such as Exxon Mobil and Chevron, continue to emphasize their commitment to fossil fuels through significant acquisitions.
Shell is set to cut 200 positions within its low-carbon solutions unit in 2024 as part of a broader overhaul by CEO Wael Sawan, who is pushing for the company’s transition to clean energy. These changes align with Shell’s commitment to become a “net-zero emissions energy business” by 2050. While some of the affected jobs will be moved to other divisions within Shell, an additional 130 roles are under review throughout 2024. Shell had recently failed to secure a grant from the $7 billion federal funding for hydrogen energy development. Despite this, the company plans to invest $10 billion to $15 billion in low-carbon energy over the next two years, including biofuels, hydrogen, carbon capture, and electric vehicle charging. Shell is working on its transition to cleaner energy while facing criticism for its historical role in climate change and its slow progress in meeting climate goals. Competitors like Exxon Mobil and Chevron have recently reaffirmed their commitment to fossil fuels, raising questions about the place of major oil companies in the clean energy future.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/25/shell-will-cut-200-jobs-in-its-low-carbon-division.html
