The fossil fuel giant has instead said it will aim to keep the amount of oil the company extracts at today's level until the end of the decade.
The news was announced as part of a strategic shift presented by Shell's new chief executive Wael Sawan in New York, that aims to “simplify” the energy major’s business and increase investor confidence. Since taking the job in January, Sawan has been looking at ways of increasing performance in an attempt to close the valuation gap that separates the company from its US rivals.
As part of this effort, Shell said it would reduce capital spending in 2024 and 2025 to $22-$25bn (£17-20bn) a year, down from a planned $23bn-$27bn (£18-21bn) in 2023. To achieve this, the company plans to cut group-wide annual operating costs by $2bn-$3bn (£1.5-£2.3bn) by the end of 2025.
Despite the shift, Sawan has taken steps to appease investors by increasing shareholder dividends. In the new strategy, dividends will...