Introduction
The global energy crisis has been one of the most pressing issues in recent years, with the world’s reliance on natural gas becoming increasingly apparent. In an interview with Bloomberg TV, Shell PLC’s chief executive Wael Sawan emphasized that the crisis is far from over and will continue to impact the industry for years to come.
The Role Of Natural Gas
Natural gas has played a crucial role in the transition towards lower-carbon energy sources. As countries look to reduce their reliance on fossil fuels, natural gas has emerged as a key player in providing a cleaner alternative to coal and other heavy fuels.
"Gas Has A Critical Role To Play In The Transition"
According to Sawan, Shell’s liquefied natural gas (LNG) business boomed last year as Europe pivoted away from piped supplies of the fuel from Russia. The company delivered 194 LNG cargoes to Europe and the UK in 2022, roughly five times what they would do in a typical year.
Challenges Ahead
The energy crisis is not expected to ease anytime soon. Sawan noted that there’s still a lot of work to be done to reorganize energy flows to make up for the long-term loss in Russian supplies. He emphasized that this will be a journey of years, and anyone who assumes the worst is over should be cautious.
"I Would Not Declare An End To The Energy Crisis. I Think We Have A Way To Go."
Impact On Shell’s Business
The global energy crisis has presented both challenges and opportunities for companies like Shell. Sawan highlighted that the company’s natural gas business continues to grow in a world desperately in need of the fuel.
"Our Natural Gas Business Continues To Grow In A World That Is Desperately In Need Of Natural Gas At The Moment, And I Think For A Long Time To Come."
Shell’s LNG business has been a major beneficiary of the energy crisis. Sawan emphasized that gas will continue to play a critical role in the company’s growth strategy.
Outlook For 2023
Sawan pointed out that there are signs of renewed demand for natural gas, particularly from China as it emerges from its COVID-zero policies.
"What You Will Have Going Into 2023 Of Course Is The Return Of A Significant Appetite From China To Take Up Gas."
However, Sawan warned against assuming that the energy crisis is over. He emphasized that there’s still a lot of work to be done to reorganize energy flows and mitigate the impact of the crisis.
Conclusion
The global energy crisis has presented both challenges and opportunities for companies like Shell. While natural gas will continue to play a critical role in the transition towards lower-carbon energy sources, the crisis is far from over.
"This Is Going To Be A Journey Of Years."
As the world continues to navigate this complex issue, it’s essential to remain vigilant and adapt to changing circumstances. The industry must come together to ensure that the transition towards a more sustainable energy future is smooth and equitable for all stakeholders.
References
- Bloomberg.com: "Shell Hikes Dividend 15% as Profit Doubles to Record $40 Billion"
- Greg Ebel: "The World Wants And Needs Canada’s Energy – Especially LNG"
