Exploration
The world will still need oil and gas for years to come, as some sectors can鈥檛 be easily decarbonised, such as the production of steel, cement, chemicals and heavy freight, shipping and aviation.
With Shell鈥檚 Powering Progress strategy, we have a clear target to become a net-zero emissions energy business by 2050 and are doing this purposefully and profitably. This means our strategy will drive down carbon emissions and deliver value for our shareholders at the same time.
Our exploration focus
Our focus remains on 鈥渧alue over volume鈥�. We have gone from around 45 positions, down to just over 20 high quality positions. This means we will continue to be selective in our exploration and new business development, with a high expectation of returns and scrutinising opportunities to ensure they are a good fit with our Powering Progress goal to achieve net-zero emissions.
We will focus and commit the bulk of our budget around our core positions, where we have an explicit competitive advantage given history, infrastructure and stakeholder relationships, with strong integrated value chain positions and opportunities to achieve greatest returns. The majority of our capital allocation will be focused (80%) on core positions, with 70% in Deep water to expand our presence and extend the production profile of existing assets through near field exploration (NFE).
At the same time, we will expand our presence and extend the production profile of existing assets through near field exploration. Growth outside of these areas will focus on selective basins and countries that make commercial sense and enhance our portfolio in line with our strategy. No new Frontier entries are anticipated after 2025. A frontier entry refers to Shell participating in new exploration activities (seismic activities, exploratory drilling) outside countries where hydrocarbons have been discovered already (by Shell or other companies).
