Goodbye oil! Shell switches to renewables and appoints new CEO

Jakarta, CNBC Indonesia – Shell has turned to gas and renewable energy companies to lead the transition to a greener future. Today, the British oil company chose Wael Sawan to replace Ben van Beurden as Chief Executive Officer (CEO).

Sawan’s appointment as CEO comes as Shell aims to reduce emissions to net zero by 2050. The company has pledged to move away from fossil fuels.

Sawan, considered the favorite to replace van Beurden, resigned at the end of the year after almost a decade at the helm and worked for 40 years or from 1983 in the company. He is a 48-year-old Lebanese-Canadian.

During his tenure, van Beurden oversaw Shell’s biggest acquisition in decades and led the company on significant steps to reduce greenhouse gas emissions. This will BECOMES important task for his successor.

Sawan previously led Shell’s oil and gas production business and now oversees its growth in the company’s integrated low-carbon power and gas businesses. Sawan’s appointment as the new CEO will take effect on January 1, 2023.

Credit Suisse analysts said Sawan was well known to investors and hoped his appointment would have limited impact on Shell’s strategy. Credit Suisse Asset Management are Shell’s five largest shareholders.

“This shift is likely more of a continuation than the strategic revolution spearheaded by van Beurden,” RBC Capital analysts said. Reuters, Thursday (9/15/2022).

After the coronavirus pandemic and a collapse in energy demand in early 2020, Shell, under van Beurden, cut its dividend, the largest in the world at the time by around $15 billion, for the first times since World War II.

But in July, the company posted record results, with its second-quarter profit of $11.5 billion topping the figure set three months earlier. Shares of London-listed Shell, which have gained more than 44% in value so far this year, edged higher in early trading.

[Gambas:Video CNBC]

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Zera Carpenter

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