Shell plans massive cuts in its oil exploration division

Shell plans to significantly reduce headcount in its exploration division, with job cuts mainly in the USA, the Netherlands and the UK, as part of a global cost-cutting strategy.

Share:

Shell is planning major staff cuts in its exploration and well development division, potentially affecting hundreds of employees worldwide.
The planned cuts are concentrated mainly in the Houston, The Hague and UK offices.
This initiative is part of a wider strategy led by CEO Wael Sawan to optimize costs and refocus the company’s resources on its most profitable activities.
Shell hopes to achieve a structural cost reduction of $2-3 billion by 2025. Oil exploration is crucial to the renewal of Shell’s reserves and the discovery of new resources, but the review of its strategic priorities is leading the company to consider streamlining this activity.
These adjustments follow similar measures already taken in the renewable energies and low-carbon sectors, where Shell has reduced its commitments.

Reorganization and strategic refocusing

The planned reorganization goes hand in hand with Shell’s desire to maintain oil production at stable levels while increasing its presence in the liquefied natural gas (LNG) market, considered strategic for future growth.
This orientation has led to a reassessment of environmental objectives, with a weakening of emissions reduction targets for 2030 and the deletion of those for 2035, reflecting an adjustment to the realities of the energy market.
At the same time, Shell is pursuing the sale of certain less strategic assets, including refineries and electricity distribution units.
These decisions are aimed at freeing up capital for more profitable activities and meeting investors’ expectations in terms of financial performance.

Market impact and industry outlook

Investors have reacted positively to this strategic reorientation, with the Shell share price rising by over 8% this year.
This outstripped the performance of several European and American competitors, testifying to renewed confidence in the company’s financial management.
Shell’s focus on its most profitable segments could prompt other industry players to review their strategies and priorities, especially in the face of uncertain energy demand and pressures on profitability.
Shell’s focus on operational efficiency and short-term financial performance reflects a pragmatic adaptation to current economic realities.
This approach could influence the way the energy sector as a whole approaches the management of its resources and its commitments to the energy transition.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.