Shell decreases offshore wind spending

Main points: Oil drums containing lubricant oil sit on a conveyor belt at a Royal Dutch Shell lubricants blending plant in Europe. Shell, one of the world’s largest energy traders, will focus on selling power to clients and developing battery storage sites. — Bloomberg

LONDON: Shell is stepping back from new offshore wind investments and is splitting its power division following an extensive review of the business that was once seen as a key driver of the company’s energy transition strategy.

The changes are part of a company-wide review launched in 2023 aimed at reducing costs as chief executive officer or CEO Wael Sawan focuses on activities with the highest returns. In many cases that has meant reducing spending on low-carbon and renewable businesses and increasing the focus on oil, gas and biofuels.