Oil and gas company Shell may sell its assets in the largest US oil field. It would be an essential step for the company in the transition to sustainable energy, and insiders told Reuters news agency.
Shell has recently come under increasing pressure to reduce CO2 emissions. But the move could also be interesting for financial reasons due to the costs involved in the shale extraction and large sales proceeds.
Shell’s share of the large oil field in the American Permian Basin, which is largely located in Texas, still accounted for 6 percent of the company’s total oil and gas production last year. If the assets are sold in their entirety, Shell could potentially get more than $10 billion for it. This would be one of Shell’s largest sales deals in recent years.
According to the sources, Shell has not yet made a final decision. It is also possible that the second-largest energy company in the western world does not sell its shareholding. Shell itself declined to comment.
If Shell were to withdraw from the area, it could help it meet its sustainability goals. Shell aims to have zero net CO2 emissions by 2050. Recently, Shell has also been under pressure to do even more work on greening. Shell is expected to appeal that ruling.