Shell peers into a future with less oil after production peaked in 2019

Royal Dutch Shell said Thursday that its oil production peaked in 2019 and is expected to decline by roughly 1%-2% annually as the company diversifies into lower-carbon energy products and business lines.Why it matters: It signals how some of the world's most powerful oil-and-gas companies are positioning themselves for a world taking climate change more seriously and responding to calls from investors and activists to do more.Driving the news: The news arrived in Shell's wider update Thursday morning on its pledge last year to become a "net-zero emissions" business by 2050 while, it hopes, staying attractive for shareholders.The company intends to raise dividends by roughly 4% annually.Shell said its carbon emissions likely peaked in 2018.It also laid out steeper targets for reducing carbon intensity — that is, emissions per unit output.Shell plans to cut intensity by 6%-8% by 2023, 20% by 2030, and 45% by 2035.The big picture: Europe-based multinationals all have aggressive long-term emissions targets and are moving more deeply into areas like renewables, power services and carbon removal — even as fossil fuels remain their dominant businesses and investments.On Thursday morning, Shell said it plans to expand its electric vehicle charging network from roughly 60,000 charge points today to 500,000 by 2025.It aims to sell 560 terawatt-hours a year of power to homes and businesses by 2030, double today's levels.Shell is also eyeing the expansion of its hydrogen and biofuels businesses, among other efforts. That includes developing "integrated hydrogen hubs to serve industry and heavy-duty transport."CEO Ben van Beurden said their overall plans will "drive down carbon emissions and will deliver value for our shareholders, our customers and wider society."What they're saying: Several activist groups were critical.“We welcome this step with cautious optimism. However, Shell’s new targets still won’t lead to Paris-consistent emissions levels,” said the activist shareholder group Follow This.The environmental group Friends of the Earth said Shell's efforts are insufficient."Only if CO2 emissions are to decrease drastically in absolute terms in the coming years we can prevent dangerous climate change," the group said.And Bloomberg notes that both Friends of the Earth and Greenpeace believe the company is "leaning too heavily on reforestation and carbon capture and storage."Yes, but: Via Reuters, Adam Matthews of the Church of England Pensions Board, which works with companies on climate, said: "Shell’s net zero target is industry-leading and comprehensive as it covers all their carbon emissions."

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