As countries around the world make pledges to halt the sale of internal combustion engines, Royal Dutch Shell is preparing for a world in which oil price is “lower forever”. The boss of Shell, Ben Van Beurden, is moving his company towards renewable energy and the electric vehicle industry.
According to an article in Yahoo Finance, the oil company has been shifting its production from oil to natural gas. Mr. Van Beurden biggest statement to the world is that Shell will reveal its plans to become a leader in renewable energy and move into being part of the coming boon of electric cars.
The Shell CEO beleives that peak oil demand will happen around 2030, which is a full decade ahead of the International Energy Agency’s prediction.
Shell will be investing $1bn USD a year on a new division of the company which began last year and will be focused on hydrogen fuel cells and biofuels.
Shell is not turning its back on oil completely though. Even though the electric car will be taking over the roads, aviation, shipping and industry, as well as less advanced economies, will still be using oil.
But Shell sees the writing on the wall and is prepared to move forward into the new energy economy.