Oil and gas giant Shell has continued its retreat from renewables as it is set to cut 200 low-carbon jobs and review another 130.
Next year 200 roles are to be slashed in the low carbon solution and hydrogen divisions, while a further 130 positions are under review in an effort to reduce headcount and to grow profits, Shell said.
Cuts to the low carbon solution division equate to 15% of the roughly 1,300 staff in the department.
Carbon capture storage and nature-based solutions also form the department but will be unaffected, and renewable power will also not be hit.
The light hydrogen mobility unit that worked on hydrogen solutions for cars will see the most cuts: two of four general manager roles in the hydrogen section will be merged, Shell said. Work to move support hydrogen-fuelled heavy goods vehicles will continue.
Some roles will be integrated into other parts of the company which has more than 90,000 employees, Shell added.
Shell had already closed its hydrogen car refuelling points in the UK as consumers chose electric cars. It comes despite the company committing to build Europe’s largest renewable hydrogen plant in the Netherlands.
More on Royal Dutch Shell
Related Topics:
The cuts come as the new Shell chief executive Wael Sawan seeks to boost profits and gas production while keeping oil output steady. Focus on high-margin projects (such as oil when prices are high) is part of his plan.
Shell’s target of cutting oil production each year for the rest of the decade was dropped in June of this year after cutting production by about 20% from a 2019 peak.
Advertisement
Also shelved were any renewable-electricity capacity targets. Instead, it aims to invest more than six times as much on fossil fuels as it will on clean power.
In 2022, Shell spent 17% (£3.5bn) of its total capital expenditure (£20bn) on “low-carbon energy solutions”, which included renewable power, electric vehicle charging and biofuels.
Company profits have fallen after hitting an all-time annual high of £32.2bn for 2022. Latest filings showed a big fall in second-quarter profit from $11.5bn (£9.46bn) the year before to just over $5bn (£3.9bn) as energy prices plunged from the Russia-Ukraine invasion peak.
Please use Chrome browser for a more accessible video player
0:43
‘Climate criminals!’ – oil firm protest
Mr Sawan took the helm in January after his predecessor Ben van Buerden stepped down, having been in the post for eight years.
“We remain committed to investing in viable low carbon business models and focusing on our strengths as we play our part in decarbonisation of the global energy system,” Shell told Sky News.
“This will include ensuring ongoing reliable delivery of energy and decarbonisation products, services, and solutions to our customers.”
The fossil fuel company is listed on the London Stock Exchange and headquartered in the UK capital.
Financial results for the third quarter of 2023 will be published on Thursday next week.
Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.
A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.
The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.
He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.
His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.
“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.
“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”
More on Liverpool
Related Topics:
Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.
To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.
Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.
“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.
He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.
Former Manchester United and Scotland footballer Denis Law has died, at the age of 84.
In a statement, his family said: “It is with a heavy heart that we tell you our father Denis Law has sadly passed away. He fought a tough battle, but finally, he is now at peace.
“We would like to thank everyone who contributed to his wellbeing and care, past and much more recently.
“We know how much people supported and loved him and that love was always appreciated and made the difference.”
The Aberdeen-born footballer previously announced in August 2021 that he had been diagnosed with dementia.
A prolific striker, Law scored 237 goals in 404 appearances for Manchester United, for whom he signed for a then-British record transfer fee in 1962.
He is the only man to have two statues dedicated to him at Old Trafford – one on the Stretford End concourse, the other as part of the United Trinity statue overlooking the stadium’s forecourt beside fellow great George Best and Sir Bobby Charlton.
The only Scottish player to have won the Ballon d’Or award, in 1964, he was also part of United’s triumphant campaign in the 1968 European Cup – in which they became the first English club to ever win the competition.
In a statement, the club said: “Everyone at Manchester United is mourning the loss of Denis Law, the King of the Stretford End, who has passed away, aged 84.
“He will always be celebrated as one of the club’s greatest and most beloved players.
“The ultimate goalscorer, his flair, spirit and love for the game made him the hero of a generation. Our deepest condolences go out to Denis’s family and many friends. His memory will live on forever more.”
Wayne Rooney, former United captain and the club’s all-time record goalscorer, described Law as a “legend”.
“Thoughts with all Denis’s family and friends,” he said in an online post.
Another former United captain, Gary Neville, said: “A great footballer and a great man. It’s a privilege and an honour to have spent time in your company. The King of the Stretford End.”
A tribute from the Scotland national team said Law was “a true great”.
“We will not see his likes again,” it said.
Law also played for Huddersfield Town, Manchester City, and Italian club Torino during his club career, and made 55 appearances for Scotland, scoring 30 goals for his country.
Manchester City said in a post on X: “The whole of Manchester, including everyone at City, is mourning with you. Rest in peace, Denis.”
The weakened pound has boosted many of the 100 companies forming the top-flight index.
Why is this happening?
Most are not based in the UK, so a less valuable pound means their sterling-priced shares are cheaper to buy for people using other currencies, typically US dollars.
This makes the shares better value, prompting more to be bought. This greater demand has brought up the prices and the FTSE 100.
The pound has been hovering below $1.22 for much of Friday. It’s steadily fallen from being worth $1.34 in late September.
Also spurring the new record are market expectations for more interest rate cuts in 2025, something which would make borrowing cheaper and likely kickstart spending.
What is the FTSE 100?
The index is made up of many mining and international oil and gas companies, as well as household name UK banks and supermarkets.
Familiar to a UK audience are lenders such as Barclays, Natwest, HSBC and Lloyds and supermarket chains Tesco, Marks & Spencer and Sainsbury’s.
Other well-known names include Rolls-Royce, Unilever, easyJet, BT Group and Next.
If a company’s share price drops significantly it can slip outside of the FTSE 100 and into the larger and more UK-based FTSE 250 index.
The inverse works for the FTSE 250 companies, the 101st to 250th most valuable firms on the London Stock Exchange. If their share price rises significantly they could move into the FTSE 100.
A good close for markets
It’s a good end of the week for markets, entirely reversing the rise in borrowing costs that plagued Chancellor Rachel Reeves for the past ten days.
Fears of long-lasting high borrowing costs drove speculation she would have to cut spending to meet self-imposed fiscal rules to balance the budget and bring down debt by 2030.
Please use Chrome browser for a more accessible video player
3:18
They Treasury tries to calm market nerves late last week
Long-term government borrowing had reached a high not seen since 1998 while the benchmark 10-year cost of government borrowing, as measured by 10-year gilt yields, was at levels last seen around the 2008 financial crisis.
The gilt yield is effectively the interest rate investors demand to lend money to the UK government.
Only the pound has yet to recover the losses incurred during the market turbulence. Without that dropped price, however, the FTSE 100 record may not have happened.
Also acting to reduce sterling value is the chance of more interest rates. Currencies tend to weaken when interest rates are cut.