Shell plans to increase production in its oil and gas business by around one percent annually until 2030 while significantly increasing capital distributions to shareholders. The company presented its strategy for the next five years on Tuesday during its Capital Markets Day in London.

Accordingly, Shell intends to steadily expand production levels in the upstream and integrated gas business. Daily production of liquid hydrocarbons is to remain stable at 1.4 million barrels until 2030. This clearly commits the company to the long-term use of fossil energy sources, even as it invests in transformation simultaneously.

At the same time, Shell raises the target range for returning cash to shareholders. In the future, between 40 and 50 percent of the operating cash flow is to be distributed – previously the target was 30 to 40 percent. With this step, the company continues its yield-oriented strategy initiated in June 2023.

Analysts had not expected a fundamental realignment, but rather a continuation of the current course. Even then, Shell had announced plans to streamline operations, reduce costs, and aim for stable oil production. The newly presented update confirms this approach – with a focus on growth, efficiency, and capital discipline.