Low-carbon future 'bigger challenge than oil prices'

Speaking at the Oil & Money Conference in London yesterday, Mr van Beurden also said he wants governments worldwide to introduce carbon pricing systems where they do not yet exist.

His comments come just two months ahead of the UN’s Climate Change Conference, which is being held in Paris from November 30 to December 11.

Mr van Beurden explained how the growing global demand for energy means the industry will have to strike a balance between moving towards using cleaner energy and still meeting the increasing need for fuel.

He said: “I know that some people would like fossil fuels to be replaced by renewables as we speak, but for technical and economic reasons, this can only happen step by step.

“It will also not happen across the board, as sectors like heavy industry, heavy duty transport and chemicals need carbon to operate and the resource base of the other large source for carbon, biomass, is insufficient to meet their demand.

“This means that sectors like these will continue to need hydrocarbons.”

The development of technological solutions within the energy sector was also discussed by Mr Van Beurden, who believes they play a crucial role in reducing the need for fossil fuels.

He said: “Technologies like carbon capture and storage (CCS) are required to clean up the use of fossil fuels.

“We can no longer wait for CCS technologies to mature slowly. The world needs to start applying them widely and without delay.”

Mr van Beurden also has concerns over the current low prices of oil, however he reinforced the fact that Shell will not suffer because of this.

He said: “I see the first mixed signs for a recovery in oil prices.

“If prices remain low for much longer the world may find itself in a tight corner at some stage when stocks are rebalanced.

“Either way, companies like Shell can thrive in a ‘lower for longer’ world.”