Shell plans to reset its energy transition strategy over the next two and half years in an effort to close the yawning valuation gap that has opened up between it and its US peers since 2020. Chief executive Wael Sawan used his first capital markets day as head of the company on 14 June to emphasise four priorities that he says will support the major’s investment case. Shell remains committed to oil and gas, with a particular focus on LNG growth, which will help to address energy security. It will continue to play its part in enabling the energy transition, but with increased focus on decarbonising specific sectors such as transport and industry, while improving the value of its downstream business. Sawan intends to crack the whip at Shell by driving an improvement in performance, increasing cost discipline and simplifying certain areas of its business. And underlying all these plans is the company’s commitment to enhancing shareholder returns.
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