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Reuters, 1 July – According to four people familiar with the talks, Royal Dutch Shell Plc (RDSa.L) intends to exit Aera, its California-based oil and gas-producing joint venture with Exxon Mobil Corp (XOM.N). Shell has unloaded a number of carbon-intensive assets this year, including a refinery in Washington state and a stake in a Houston-area refining joint venture to Petroleos Mexicanos, as it switches its new investments to renewables and power. find out more According to Reuters, the corporation is reportedly considering selling its assets in Texas’ Permian Basin. Aera produces approximately 125,000 barrels of oil and 32 million cubic feet of natural gas each day, accounting for over 25% of the state’s oil and gas production. Shell has informed Exxon of its intention to depart the collaboration, according to the people, who spoke on the condition of anonymity because the discussions are private. Shell declined to comment, citing company policy as the reason. The Bakersfield, California-based joint venture produces predominantly in the San Joaquin Valley. Shell earlier sold all of its oil processing businesses in California, including some with pipeline links to the fields. Despite enacting the most stringent state-level greenhouse gas emission regulations, California continues to produce around 360,000 barrels of oil each day. An executive order issued last year mandated that all new cars and passenger trucks sold in California be zero-emission vehicles by 2035, and that the state reduce the most polluting sources of oil production. Oil prices have risen by more than 50% this year, owing to a comeback in demand as COVID-related demand. Travel restrictions for 19 pandemics have been abolished. Many oil producers have decided to sell their assets as a result of the price increase. Investor pressure to minimize fossil-fuel investments to combat global climate change caused by carbon emissions has exacerbated the rush to sell. Shell and other European oil companies like BP Plc (BP.L) and TotalEnergies have vowed to reduce emissions by increasing renewable energy investment and divesting some oil and gas interests. Shell, one of the world’s major oil companies, announced this year that by 2035, it aims to reduce the carbon intensity of its products by at least 45 percent, and by 100 percent by 2050, compared to 2016 levels. Shell’s efforts have been deemed insufficient by a Dutch court, which has ordered the company to reduce emissions by 45 percent by 2030 compared to 2019 levels. Chevron (CVX.N) is trying to sell approximately $1 billion worth of properties in the Permian Basin of Texas and New Mexico this year, according to reports. continue reading According to industry analysts, Exxon, Occidental Petroleum Corp (OXY.N), and others are looking to sell off unattractive assets and raise cash. Jessica Resnick-Ault reported from New York, Arathy Nair and Shariq Khan from Bengaluru, while David Gaffen and Marguerita Choy edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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