SHELL INDICATES NO NEW OFFSHORE WIND INITIATIVES
Are they beginning to recognize the inevitable signs?
Last week, Shell announced that it will not pursue any new offshore wind projects. True to its reputation as a leading oil company, Shell intends to honor its existing commitments rather than abandon previously made agreements. This stands in stark contrast to Equinor and BP, who withdrew from New York projects last year. Additionally, BP has decided to sell off its entire onshore wind portfolio in the United States and move its offshore wind into JV with Japan’s Jera.
The driving force behind Shell's decision is financial. Shareholders are increasingly resistant to the idea of investing in ventures that do not yield profitable returns. This demand for profitability is a common theme among all major oil companies, and it is entirely justified. With no significant impact on emissions reduction, the rationale for continuing in this space diminishes even further.
What remains intriguing is why Shell ventured into wind and solar energy in the first place. Their primary focus has always been on liquid energy, not electricity. As Exxon famously stated, their business revolves around molecules, not electrons.
Given that the most cost-effective and emission-efficient renewable energy source is also liquids, it raises questions about the resources they have already expended in this area. The safest and most economical oil exploration opportunities lie in onshore biomass, as highlighted by enenergy.net.