Shell Aims to Cut Costs While Adding Oil, Gas Capacity in Gulf

Researched by Industrial Info Resources (Sugar Land, Texas)-- Shell plc (NYSE:SHEL) (London, England) plans to boost its production of natural gas and maintain its production of crude oil, while reducing its 2024-25 capital expenditures to between $22 billion and $25 billion each year, which would be down from 2023's expected $23 billion to $27 billion. But The Wall Street Journal reported Shell also is performing a review of its chemicals business, which took a $1.4 billion adjusted loss in 2022.

Industrial Info is tracking more than $4.6 billion worth of oil and natural gas production projects from Shell in the Gulf of Mexico, more than $1.3 billion of which is attributed to projects already under construction. Despite their plans to cut annual operating costs by $2 billion to $3 billion by the end of 2025, Shell executives said in an update ahead of their annual investor day that the company will maintain its crude oil output at current levels until 2030, while increasing natural gas production and investing more in hydrogen and carbon capture and storage (CCS). Executives also restated their vow to achieve net-zero carbon emissions by 2050.

Other companies featured: Equinor (NYSE:EQNR) and Williams Companies Incorporated (NYSE:WMB)