‘Obscene’ Shell profit shows urgent need to get off fossil fuels
Climate campaigners have reacted to the announcement of Shell’s 2022 profits of £32.2billion ($39.9b), saying the figures show that our harmful energy system must urgently be transformed away from fossil fuels.
Climate science is clear that we urgently need to transition away from our broken fossil fuel energy system in order to secure a liveable future. Analysis has shown that renewable energy is 9 times cheaper than new fossil fuel energy.
A Channel 4 investigation in August 2022 shows Shell invested equivalent of just 6.3% of its £17.1bn profits into low carbon energy, investing nearly three times more in oil and gas.
Independent climate advisors have said that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market. However, continued reliance on volatile fossil fuels will leave millions vulnerable to spikes in their prices.
Friends of the Earth Scotland’s oil and gas campaigner Freya Aitchison said:
“The announcement of yet another obscene profit for Shell shows the scale of the harm that these companies are inflicting on households and businesses. Oil company bosses and shareholders are being allowed to get even richer by banking huge profits, while normal people are facing enormous energy bills and millions are being forced into fuel poverty.
“Shell is worsening climate breakdown and extreme weather by continuing to invest and lock us into new oil and gas projects for decades to come. Their Jackdaw project was given the green light by the UK Government in 2022 and we know they only invest a small fraction of their profits into renewable energy.
“These profit figures are further evidence that our current fossil fuelled energy system is seriously harming people and the climate. Despite this, the Scottish Government’s recent draft Energy Strategy contains very few new steps to tackle the climate crisis or the immediate impacts of the cost of energy crisis.
“Ministers should instead chart a clear path away from fossil fuels and towards an energy system that is built on clean, reliable renewables. They must listen to the science which tells us that to meet climate targets in a fair way, fossil fuel extraction needs to be phased out in the next decade.”
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Scottish Energy Strategy explainer
The UK Committee on Climate Change wrote to then UK energy minister Kwasi Kwarteng in Feb 2022 to say that “We would not expect increased UK extraction to materially affect global oil or gas prices” and “the best approach to reducing consumers’ exposure to fossil fuel prices is to make systematic efforts to reduce UK demand for fossil fuels”
Friends of the Earth Scotland is:
* Scotland’s leading environmental campaigning organisation
* An independent Scottish charity with a network of thousands of supporters and active local groups across Scotland
* Part of the largest grassroots environmental network in the world, uniting over 2 million supporters, 73 national member groups, and 5,000 local activist groups.