Post by account_disabled on Feb 17, 2024 3:18:18 GMT -5
The news that Shell is cutting clean energy jobs while rewarding its shareholders with at least $23 billion in dividends has sparked controversy. The oil company has reported a decrease in its profits and, at the same time, has announced plans to cut up to 25% of collaborators who work on projects and technologies related to more sustainable and environmentally friendly energy sources. In the context of the fight against global warming and the need to promote more sustainable energy sources, the fact that Shell reduces clean energy jobs while rewarding shareholders reflects the contradiction between its announced commitments to sustainability and its business practices, according to The Guardian . Is Shell leaving aside climate commitments? Shell CEO Wael Sawan has told investors to expect payouts to shareholders “well above” expectations, despite job cuts at its clean energy division. The company has planned to deliver a $3.5 billion benefit to its shareholders through its share buyback program in the coming months. These payments to shareholders have caused outrage among environmental groups and social justice advocates, who have urged that more company money should go toward investments in renewable energy or reduce energy bills through higher government taxes. strict. Importantly, the payments to shareholders are more than six times the amount Shell plans to spend on renewable energy this year. In 2022, the company invested approximately $3.5 billion in its renewable energy and energy solutions business, which represented 14% of its total capital expenditure.
Despite reporting record profits of $40 billion in 2022, Shell has reported that its existing investments in renewable energy and energy solutions have not been profitable in the first nine months of 2023. Shell reduces clean energy jobs Less clean energy, more fossil fuel profits CEO Sawan announced plans to reduce Shell's workforce working on clean energy solutions by around 200 people next year, having vowed to focus on highly profitable oil projects and expand its gas business since taking over. address in January. These decisions by Shell have been criticized by climate activists, such as Charlie Kronick, senior climate advisor at Greenpeace in the United Kingdom, who stated: "People are tired of seeing oil company bosses pretending to care about the planet while they cut jobs and investments in renewable energy and allocate money to dividends, share buybacks and new fossil fuel projects. Imogen Dow, Friends of the Earth campaigner, added: "Buoyed by last year's huge profits, the biggest in Shell's history, the company is going fullMiddle East Mobile Number List steam ahead with plans to extract every last drop of oil and gas it has. can. "The companies that fuel the climate and energy crisis continue to get rich at our expense." Shell prioritizes profits only from shareholders The news comes as consumers remain exposed to future price increases and volatile gas markets, which are increasingly threatened by global instability. This reinforces the argument for the importance of accelerating the transition towards more sustainable energy sources and gradually abandoning dependence on fossil fuels, which are considered expensive and harmful to the environment.
Shell's third-quarter adjusted earnings fell to $6.2 billion from $9.5 billion in the same period a year earlier, in line with industry analysts' expectations due to declining oil prices and gas since its peak last year, when Russia invaded Ukraine. Sawan has vowed to grow Shell's gas business despite warnings from climate experts that new oil and gas projects are not compatible with the global goal of limiting global warming to 2°C of pre-industrial levels. . Criticism of the government for benefiting oil companies Criticism has also been directed at the government, with Trades Union Congress (TUC) general secretary Paul Nowak claiming this reflects everything that is wrong in the energy market. He argued that money that should have gone to reducing household bills has ended up in the pockets of shareholders, and called on the government to stop this excessive exploitation and apply an appropriate windfall tax. It is important to note that global oil and gas market prices have fallen from their peak last year. The average global oil price was $85.80 per barrel in the latest quarter, compared to about $100.80 in the same quarter a year earlier, as the ongoing Russian invasion of Ukraine escalated. Despite the criticism, Shell shares rose 3.8% on Thursday and hit a near high of £27.72 per share. This comes amid concerns about the fallout from the conflict between Israel and Hamas, which at one point drove the price of oil to more than $92 per barrel. Creating more value with fewer emissions: Shell CEO A Shell spokesperson said the cuts were part of the company's drive to "create more value with fewer emissions" by focusing on "performance, discipline and simplification" across the business. But the key question is whether cutting clean energy jobs is the best way to achieve this.
Despite reporting record profits of $40 billion in 2022, Shell has reported that its existing investments in renewable energy and energy solutions have not been profitable in the first nine months of 2023. Shell reduces clean energy jobs Less clean energy, more fossil fuel profits CEO Sawan announced plans to reduce Shell's workforce working on clean energy solutions by around 200 people next year, having vowed to focus on highly profitable oil projects and expand its gas business since taking over. address in January. These decisions by Shell have been criticized by climate activists, such as Charlie Kronick, senior climate advisor at Greenpeace in the United Kingdom, who stated: "People are tired of seeing oil company bosses pretending to care about the planet while they cut jobs and investments in renewable energy and allocate money to dividends, share buybacks and new fossil fuel projects. Imogen Dow, Friends of the Earth campaigner, added: "Buoyed by last year's huge profits, the biggest in Shell's history, the company is going fullMiddle East Mobile Number List steam ahead with plans to extract every last drop of oil and gas it has. can. "The companies that fuel the climate and energy crisis continue to get rich at our expense." Shell prioritizes profits only from shareholders The news comes as consumers remain exposed to future price increases and volatile gas markets, which are increasingly threatened by global instability. This reinforces the argument for the importance of accelerating the transition towards more sustainable energy sources and gradually abandoning dependence on fossil fuels, which are considered expensive and harmful to the environment.
Shell's third-quarter adjusted earnings fell to $6.2 billion from $9.5 billion in the same period a year earlier, in line with industry analysts' expectations due to declining oil prices and gas since its peak last year, when Russia invaded Ukraine. Sawan has vowed to grow Shell's gas business despite warnings from climate experts that new oil and gas projects are not compatible with the global goal of limiting global warming to 2°C of pre-industrial levels. . Criticism of the government for benefiting oil companies Criticism has also been directed at the government, with Trades Union Congress (TUC) general secretary Paul Nowak claiming this reflects everything that is wrong in the energy market. He argued that money that should have gone to reducing household bills has ended up in the pockets of shareholders, and called on the government to stop this excessive exploitation and apply an appropriate windfall tax. It is important to note that global oil and gas market prices have fallen from their peak last year. The average global oil price was $85.80 per barrel in the latest quarter, compared to about $100.80 in the same quarter a year earlier, as the ongoing Russian invasion of Ukraine escalated. Despite the criticism, Shell shares rose 3.8% on Thursday and hit a near high of £27.72 per share. This comes amid concerns about the fallout from the conflict between Israel and Hamas, which at one point drove the price of oil to more than $92 per barrel. Creating more value with fewer emissions: Shell CEO A Shell spokesperson said the cuts were part of the company's drive to "create more value with fewer emissions" by focusing on "performance, discipline and simplification" across the business. But the key question is whether cutting clean energy jobs is the best way to achieve this.