LONDON— Royal Dutch Shell PLC opted for natural gas as the energy source of the future when it bought BG Group for $ 54 billion. Five years later, it seems that the gas era will not last long.
Falling wind and solar energy prices, along with new government and business green targets, are accelerating the shift to cleaner energy and leaving natural gas, long considered by energy companies. as a bridge between fossil fuels and renewable energies. Fuel is also under increasing control of methane leaks, leading some potential customers to skip gas and move on to lower-carbon alternatives.
This poses a risk to Shell and rivals such as Exxon Mobil Corp. and Total SE, which also invest in gas, as gas projects typically cost billions of dollars in advance and take decades to recoup that investment.
Last month, Shell halved its growth prospects for global gas demand by up to 1% a year, saying fuel demand could peak as early as the 2030s. .
Although gas burning emits less greenhouse gases than coal, environmental benefits are lost if a methane leak, the main component of natural gas, occurs. Methane is more potent than carbon dioxide in contributing to climate change and has become a target for environmentalists.