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illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below
🗞️ Driving the news: Shell faces scrutiny as it prioritizes liquefied natural gas (LNG) over reducing oil output, drawing environmentalist criticism
• Despite CEO Wael Sawan's commitment to a net-zero emissions strategy, LNG remains a top priority with a planned $4bn annual investment until 2025
🔭 The context: Shell's reliance on LNG is evident, constituting over half of H1 2023 profits
• Shareholders express concerns about the long-term viability of prioritizing LNG over a compelling clean energy transition strategy
🌍 Why it matters for the planet: As one of the largest players in the energy industry, Shell's approach to LNG sends a powerful signal to the broader sector
• The choice to prioritize LNG over a more definitive shift towards cleaner energy sources underscores the challenges of balancing profit motives with ecological responsibilities
⏭️ What's next: Shell's strategy emphasizes LNG expansion until 2025, highlighting its lucrative position in the market
• However, increasing pressure to articulate a more comprehensive energy transition plan that aligns with net-zero goals may yet force the company to divert its strategy
💬 One quote: "They are moving further and further away from me being comfortable that they have a genuinely compelling view for what this business should look like in 25 years’ time," (a top 20 shareholder)
📈 One stat: Shell's integrated gas division, primarily focused on LNG, contributed over half of the company's $14.7 billion earnings in H1 2023
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