Shell needs an acquisition or exploration breakthrough to make up for an expected production shortage of 350,000-800,000 barrels of oil equivalent per day by 2035…
Shell needs an acquisition or exploration breakthrough to make up for an expected production shortage of 350,000-800,000 barrels of oil equivalent per day by 2035 due to maturing fields unable to meet its output targets, the company and analysts say.
For years, oil majors have been restrained in topping up reserves, mindful that a swift industry transition to other sources of energy could curtail oil and gas demand.
However, with such a transition lagging and demand still climbing, the focus has swung back to those with enough in the tank.
Gap Between Output Targets and What It Can Deliver
Shell's portfolio is in the spotlight because its so-called 'reserve life' - or how long its proven reserves can sustain current output levels - is equivalent to less than 8 years of production as of 2025, from 9 a year earlier, which was its lowest since 2021.
This compares with over 12 years each at Exxon and TotalEnergies at the end of 2024, data by Wood Mackenzie shows.
A shorter reserve life increases pressure to buy assets or to have a big exploration success to grow or maintain production.
Shell has pledged to grow hydrocarbon output by 1%
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