Shell PLC (LSE:SHEL, NYSE:SHEL) said it intends to invest £20bn to £25bn into UK energy over the next decade, with 75% of that on low-carbon products including hydrogen and offshore wind, but only if there is sufficient political support.
These investments do not yet appear to have been approved by the oil supermajor's board, according to a statement by Shell UK.
If approved, the aim is to “propel the UK closer to net-zero and help to ensure security of supply whilst stimulating economic growth and jobs," said David Bunch, chair of Shell UK, in the statement.
However, it comes just days after Shell was reported to be mulling its December decision not to invest in the Cambo oil field off the west coast of the Shetlands, seemingly encouraged by rise in oil prices from US$70 to around US$117 in the intervening period.
Bunch said Shell, which made a US$20bn (£15bn) profit last year, would not make the investment without support from Downing Street, citing the need for “stable political discourse” and “urgency” from the government to encourage the company to shift away from non-renewable energy sources.
“Investing this money requires urgency of action across government to deliver the enabling policy and business case frameworks. These must address both the supply and demand side of the energy transition (in areas such as hydrogen and CCS, for example).”
Following Russia’s invasion of Ukraine, which has given a big boost to the oil sector by lifting oil prices, Shell first purchased a cargo of Russian crude oil before just a day or two later saying it was sorry and that it would make a phased withdrawal from involvement in Russian fossil fuels, including crude oil, gas, petroleum products and LNG.
As well as no longer buying the country’s oil, the FTSE 100 company will offload its Rosneft (LSE:ROSN) stake and end its Gazprom joint venture.
Last year Shell unveiled its “accelerated” net zero strategy, stating that its oil production peaked in 2019.