Shell to slash spending in US operations in first shake-up under new boss
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Oil giant Shell is set to cut spending on US oil and gas production by a fifth this year and split its “downstream” operations in the country into separate businesses.
In the first shake-up since Ben van Beurden took over as chief executive from Peter Voser at the start of the year, Shell will reduce US onshore spending and redirect much of the remainder from shale gas into oil and “liquids rich” shale.
It will also separate the downstream operation into separate units covering areas such as chemicals, lubricants and biofuels.
The shake-up was announced as it unveiled its annual report, revealing that Voser took home €8.4 million (£7 million) for his work last year even though Shell issued a profits warning in January just after his departure.
However, the total salary and bonus payout package was less than half the €18.2 million that he pocketed in 2012.
Shell’s shock profit warning at the start of the year was swiftly followed by a 71 per cent drop in fourth-quarter profits to $2.1 billion (£1.3 billion) as the group suffered impairment charges on its US shale oil and gas operations and costs relating to disruption in Nigeria.
Van Beurden said: “With sharper accountability in the company, this [new] approach will target growth investment more effectively, focus on areas of the business where performance improvement is most required, and drive assets sales from non-strategic positions.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments