In a global effort to transition to a carbon-neutral economy and combat climate change in the coming decades, oil companies around the world have been selling some or all of their assets to focus more on renewables and grow their low-carbon investments.
Giant oil corporation Royal Dutch Shell is considering selling some or all of its assets in the Permian Basin, Shell’s largest US oil field located mostly in Texas. The Permian Basin, which accounted for around 6% of the Anglo-Dutch company’s total oil and gas output last year, is said to be worth about $10 billion. The Permian produces roughly 4.5 million barrels of oil a day, or about 40% of overall U.S. production.
After a court ruling ordering Shell to cut down its greenhouse gas emissions by 2030, the Anglo-Dutch company has been forced to shrink its oil and gas business.
Shell earlier this year outlined a plan that included targets like cutting the carbon intensity of the energy products it sells by at least 6% by 2023 and 20% by 2030, compared to 2016 levels.
