Shell has reportedly told ExxonMobil that it is planning to sell its 52% stake in the joint venture both oil majors are part of, Aera Energy, which is California’s largest producer of oil and natural gas and employs 1,100 people. This news comes after Shell has been selling or planning to sell oil production, leases and refineries, including locations in Washington State, the Permian Basin and Houston refinery Deer Park. Shell will still retain its chemical refining facility at Deer Park.
Shell has been divesting itself of carbon heavy emissions operations while it continues its pivot to alternative energy sources. Shell is one of the largest operators of wind turbine farms and has been investing heavily into solar power as well. But even with the sale of some of Shell’s refineries and upstream oil production sites, the company still ranks among the largest oil companies in the world with large oil production sites or leases around the globe and multiple chemical and specialty refineries. Shell began investing heavily into renewable energy in 2017.
A Dutch court ruled in 2021 that Shell must speed up its reduction of carbon emissions, Shell had already planned to halve its carbon emissions by 2035.