Cutting Down Oil Production is ‘Irresponsible,’ Says Shell CEO

Shell CEO Wael Sawan, called it “irresponsible” to lower oil and gas output while the global economy remains dependent on fossil fuels.

Sawan rejected to rule out relocating the company’s headquarters and stock exchange listing from Britain to the United States in an interview with the BBC published on Thursday.

“The reality is, the energy system of today continues to desperately need oil and gas,” he said. “And before we are able to let go of that, we need to make sure that we have developed the energy systems of the future — and we are not yet, collectively, moving at the pace (required for) that to happen.”

Statements like this go against the suggestions of climate scientists and United Nations Secretary-General Antonio Guterres, who has repeatedly urged the fossil fuel industry to “drive, not obstruct” the shift to renewable energy sources.

Abu Dhabi National Oil Co. CEO and president of this year’s United Nations climate talks, Sultan al-Jaber, has called for the oil and gas industry to achieve zero net greenhouse gas emissions by 2050.

Guterres has stated that the UN can still meet its target of keeping global warming to 1.5 degrees Celsius over pre-industrial levels if countries work faster to reduce carbon emissions.

“Investing in new fossil fuels infrastructure is moral and economic madness,” Guterres stated back in April. “Such investments will soon be stranded assets — a blot on the landscape and a blight on investment portfolios.”

However, Sawan said he disagreed with that.

“I think what would be dangerous and irresponsible is actually cutting out the oil and gas production so that the cost of living — as we saw just last year — starts to shoot up again.”

Sawan also said that it’s essential that the transition to renewable energy sources is “globally responsible,” meaning that it shouldn’t give preferential treatment to any particular region.