Shell’s boss Jeroen van der Veer, believes that fossil fuels will remain the basis energy source and says that the world must accept it is going to be dependent on carbon-based fuel but at the same time he argues that at the same time the industry must find ways of dealing with greenhouse emissions.
“Carbon sequestration in old offshore oil fields perfectly fits this model”, is his argument in an interview with last week’s The Guardian.
“Meanwhile, with “easy oil” running out, van der Veer says that it is necessary to concentrate on “unconventional “fossil fuels such as tar sand and gas-to-liquids while still proceeding with potential new sources such as biofuels, thin-film solar technology and hydrogen.
“Ultimately it is up to the government to determine the energy mix, whether to go for nuclear or not and when the politicians have decided what they want then we work with them, he says. “The Canadian government supports oil sands so we are developing them.”
What is less clear is the direction the British government is taking at a time when North Sea oil is running out. A huge asset sale by Shell and its partner ExxonMobil has led some to question the commitment of the companies to the UK more generally.
Questioned about a potential merger with BP, following endless reports that merger discussions are taking place van der Veer answers “ I made very clear at the time of the original reports we believe in our current (internal growth) strategy.”