v3.25.2
Climate change and energy transition (Tables)
12 Months Ended
Dec. 31, 2023
Climate Change and Energy Transition [Abstract]  
Summary of carrying value of assets by segment
2023
$ billion
GoodwillOther intangible assetsProperty, plant and equipmentJoint ventures and associatesTotal
Integrated Gas4.93.257.76.171.9
Upstream5.40.370.97.684.2
Chemicals and Products0.32.436.94.043.6
Marketing4.42.922.24.734.2
Renewables and Energy Solutions1.71.54.82.010.0
Corporate2.30.12.4
Total16.710.3194.824.5246.3
4. Climate change and energy transition continued

2022
$ billion
GoodwillOther intangible assetsProperty, plant and equipmentJoint ventures and associatesTotal
Integrated Gas4.93.960.85.675.2
Upstream5.30.274.57.787.7
Chemicals and Products0.32.138.14.244.7
Marketing3.31.819.14.428.6
Renewables and Energy Solutions2.21.63.21.98.9
Corporate0.12.90.13.1
Total16.09.7198.623.9248.2
Information by segment on a current cost of supplies basis is as follows:
2023
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party37,6456,475108,858118,78144,81942316,620[A]
Inter-segment11,56041,2306242,2524,70760,373
Share of profit/(loss) of joint ventures and associates (CCS basis)1,951768548590(96)(3)3,758
Interest and other income, of which:1376717661751,8182,838
Interest income627957122,2022,313
Net gains/(losses) on sale and revaluation of non-current assets and businesses
(22)20916(61)1105257
Other1534355165(47)(389)268
Third-party and inter-segment purchases (CCS basis)27,3567,89094,614102,39640,17015272,441
Operating expenses, of which:
4,8239,8459,33611,4833,83164239,960
Production and manufacturing expenses4,5299,1869497,9082,6105825,240
Selling, distribution and administrative expenses1681638,1373,3231,05858413,433
Research and development expenses1264962502521631,287
Exploration expenses2161,5341,750
Depreciation, depletion and amortisation charge, of which:
8,90312,4632,3356,4111,1591931,290
Impairment losses3,4721,3604202,7879088,947[B]
Impairment reversals(324)(206)(1)(90)(141)(762)[C]
Interest expense146507526243,9024,673
Taxation charge/(credit) (CCS basis)2,8038,377819(198)1,3039013,194
CCS earnings7,0468,5282,9501,5303,038(2,811)20,281
[A]Includes $15,607 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior gains of $4,689 million related to sales contracts and prior losses of $2,074 million related to purchase contracts that were previously recognised and where physical settlement has taken place during 2023.
[B]Impairment losses comprise Property, plant and equipment ($8,182 million), Goodwill ($635 million) and Other intangible assets ($130 million). (See Note 12).
[C]Impairment reversals comprise Property, plant and equipment ($627 million) and Other intangible assets ($135 million). (See Note 12).
7. Segment information continued

2022
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party54,7518,352120,638144,34253,19041381,314[A]
Inter-segment18,41252,2856062,6846,79180,778
Share of profit/(loss) of joint ventures and associates (CCS basis)
1,2192,111237374(7)(4)3,930
Interest and other income, of which:(714)726(104)24457706915
Interest income432224(2)9591,046
Net gains on sale and revaluation of non-current assets and businesses101437(186)2828642
Other(858)[B]26782(62)51(253)(773)
Third-party and inter-segment purchases (CCS basis)37,78510,666108,012127,52157,024(28)340,980
Operating expenses, of which:
5,23710,3658,38311,3623,59053939,476
Production and manufacturing expenses4,9079,6768107,5832,5202225,518
Selling, distribution and administrative expenses2182337,3513,59297251712,883
Research and development expenses112456222187981,075
Exploration expenses2401,4721,712
Depreciation, depletion and amortisation charge, of which:2,21110,3341,9003,2897771818,529
Impairment losses1159504803564122,313[C]
Impairment reversals(3,449)(2,504)(151)(73)(6,177)[D]
Interest expense84345462222,6823,181
Taxation charge/(credit) (CCS basis)5,89914,070903935(303)(7)21,497
CCS earnings22,21216,2222,1334,515(1,059)(2,461)41,562
[A]Includes $11,708 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior losses of $9,815 million related to sales contracts and prior gains of $7,201 million related to purchase contracts that were previously recognised and where physical settlement had taken place during 2022.
[B]Includes the full write-down of the Nord Stream 2 loan amounting to $1,126 million as a result of the withdrawal from Russian oil and gas activities.
[C]Impairment losses comprise Property, plant and equipment ($1,799 million), Goodwill ($361 million) and Other intangible assets ($153 million). (See Note 12).
[D]Impairment reversals fully comprise Property, plant and equipment. (See Note 12).
7. Segment information continued

2021
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party29,9229,18283,494116,44822,41543261,504[A]
Inter-segment8,07235,7892541,8904,67550,680
Share of profit/(loss) of joint ventures and associates (CCS basis)
1,933632385989(27)13,913
Interest and other income, of which:1,5964,592278372003537,056
Interest income373364431511
Net gains on sale and revaluation of non-current assets and businesses1,6104,130285(24)(6)5,995
Other(14)425(10)25202(78)550
Third-party and inter-segment purchases (CCS basis)20,1889,09470,745103,29426,048(5)229,364
Operating expenses, of which:
4,52610,3227,50110,3472,74552435,965
Production and manufacturing expenses4,1949,7979506,8152,098(32)23,822
Selling, distribution and administrative expenses2311866,3843,37559655611,328
Research and development expenses10133916715751815
Exploration expenses1221,3011,423
Depreciation, depletion and amortisation charge, of which:5,90813,4851,7005,4853261726,921
Impairment losses7239201292,248454,065[B]
Impairment reversals(204)(9)(1)(214)[C]
Interest expense7133327443,1323,607
Taxation charge/(credit) (CCS basis)
2,6486,057903(210)(342)(665)8,391
CCS earnings8,0609,6033,535404(1,514)(2,606)17,482
[A]Includes $126 million of revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. This amount includes both the reversal of prior losses of $4,824 million related to sales contracts and prior gains of $4,892 million related to purchase contracts that were previously recognised and where physical settlement had taken place during 2021.
[B]Impairment losses comprise Property, plant and equipment ($3,894 million), Goodwill ($167 million) and Other intangible assets ($4 million). (See Note 12).
[C]Impairment reversals fully comprise Property, plant and equipment. (See Note 12).
Cash capital expenditure
Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.
2023
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Capital expenditure
3,4918,2495,5633,1062,31427022,993
[A]
Investments in joint ventures and associates
70594498426191,202
[A]
Investments in equity securities
210689197
[A]
Cash capital expenditure*
4,1968,3435,6123,1922,68136824,392
[A]See Consolidated Statements of Cash Flows.
* Non-GAAP measure (see page 329).
7. Segment information continued

2022
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Capital expenditure
3,4338,0204,5273,8352,61017522,600
[A]
Investments in joint ventures and associates
832123304270391,973
[A]
Investments in equity securities
1156103260
[A]
Cash capital expenditure*
4,2658,1434,8313,8383,46928724,833
[A]See Consolidated Statements of Cash Flows.

2021
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Capital expenditure
3,3066,2772,1225,0912,06913519,000
[A]
Investments in joint ventures and associates
196(109)1488015410479
[A]
Investments in equity securities
3413675218
[A]
Cash capital expenditure*
3,5026,1682,2735,1752,35922019,697
[A]See Consolidated Statements of Cash Flows.
Summary of PPE
Carrying amount of Integrated Gas and Upstream assets
$ billion
20162017201820192020202120222023
Integrated Gas9594919379757572
Upstream136128123119106918884
Total at December 31231222214212185166163156
4. Climate change and energy transition continued

Carrying amount of production assets
$ billion
20162017201820192020202120222023
At December 31169154149141125112111105
Right of use assets97666
Total at December 31169154149150132118117111
Carrying amount of exploration and evaluation assets
$ billion
2016201720182019202020212022
2023
At December 31191918159765
Carrying amount of Chemicals and Production assets
$ billion
20162017201820192020202120222023
Chemicals1516182225272825
Refineries101414137666
Other1871211111113
Total at December 312638394743444544
Carrying amount of Marketing assets
$ billion
2017201820192020202120222023
At December 3115152023252934
Carrying amount of Renewables and Energy Solutions assets
$ billion
20172018201920202021
2022
2023
At December 3111335910
2023 [A]
$ million
Exploration and production
Exploration
and evaluation
ProductionManufacturing,
supply and
distribution
OtherTotal
Cost
At January 111,565277,016106,78539,595434,961
Additions2,16110,7315,9107,02925,831
Sales, retirements and other movements [B](5,164)(1,153)(1,016)(1,387)(8,720)
Reclassifications [C]
(2,779)5272,252
Currency translation differences731,8558632072,998
At December 318,635285,670113,06947,696455,070
Depreciation, depletion and amortisation, including impairments
At January 15,162159,66256,90114,594236,319
Charge for the year [D]
73118,2028,2952,68729,915
Sales, retirements and other movements [B](2,609)(2,000)(2,083)(1,394)(8,086)
Reclassifications [C]
(2,217)632,154
Currency translation differences391,326650722,087
At December 313,323174,97363,82618,113260,235
Carrying amount at December 315,312110,69749,24329,583194,835
[A]Includes right-of-use assets under leases. (See Note 21).
[B]Includes the reclassification of assets classified as held for sale. (See Note 18).
[C]Reclassifications of right-of-use assets. (See Note 21).
[D]Includes impairment losses and reversals. (See Note 12).
2022 [A]
$ million
Exploration and production
Exploration
and evaluation
ProductionManufacturing,
supply and
distribution
OtherTotal
Cost
At January 112,679285,903104,18234,005436,769
Additions1,56411,9546,9287,80828,254
Sales, retirements and other movements [B](2,469)(14,541)(2,548)(242)(19,800)
Currency translation differences(209)(6,300)(1,777)(1,976)(10,262)
At December 3111,565277,016106,78539,595434,961
Depreciation, depletion and amortisation, including impairments
At January 15,580167,53055,13113,596241,837
Charge for the year [C]3979,7095,1492,05517,310
Sales, retirements and other movements [B](765)(13,207)(2,054)(396)(16,422)
Currency translation differences(50)(4,370)(1,325)(661)(6,406)
At December 315,162159,66256,90114,594236,319
Carrying amount at December 316,403117,35449,88425,001198,642
[A]Includes right-of-use assets under leases. (See Note 21).
[B]Includes the reclassification of assets classified as held for sale. (See Note 18).
[C]Includes impairment losses and reversals. (See Note 12).
Climate change and energy transition summary of mid-price
RT23 $/b
202420252030203520402050
Shell mid-price696770707070
Average prices from four 1.5-2 degrees Celsius external climate change scenarios948050393740
IEA NZE50867943393426
NGFS GCAM NZE 20507475778183112
IEA APS949176726861
Sensitivity analysis climate change and energy transition
Sensitivity + 10% to the mid-price outlook
$ billion
Carrying amountSensitivity
Dec 31, 2023Dec 31, 202220232022
Integrated Gas72752423
Upstream848811
Total1561632524
Sensitivity averaged from three below-two-degrees-Celsius external climate scenarios
$ billion
Carrying amountSensitivity
Dec 31, 2023Dec 31, 202220232022
Integrated Gas7275(12)(16)(4)(6)
Upstream8488(3)(5)(1)(2)
Total156163(15)(21)(5)(8)
Sensitivity IEA NZE50
$ billion
Carrying amountSensitivity
Dec 31, 2023Dec 31, 202220232022
Integrated Gas7275(15)(20)(9)(12)
Upstream8488(3)(5)(8)(11)
Total156163(18)(25)(17)(23)
Sensitivity - 10% to the mid-price outlook
$ billion
Carrying amountSensitivity
Dec 31, 2023Dec 31, 202220232022
Integrated Gas7275(4)(6)(2)(4)
Upstream8488(1)(2)(1)
Total156163(5)(8)(2)(5)
Sensitivity Hybrid Shell Plan + IEA NZE50

$ billion
Carrying amountSensitivity
Dec 31, 2023Dec 31, 202220232022
Integrated Gas7275(8)(10)(4)(6)
Upstream8488(1)(3)(1)(2)
Total156163(9)(13)(5)(8)
Sensitivity IEA NZE 2050 carbon price scenario
$ billion
Carrying amountSensitivity
Dec 31, 2023Dec 31, 202220232022
Integrated Gas7275(2)(4)(2)(5)
Upstream8488(1)
Chemicals and Products [A]44(3)(4)
Total200163
[A]
(5)(9)
[A]Excludes Chemicals and Products for 2022 for which from 2023 sensitivity to IEA NZE 2050 carbon prices has been included.
Summary of information about carbon prices
For the key regions and countries the following carbon prices per tonne (RT23) have been assumed in the Operating Plan:
Operating plan periodSubsequent period
Region
2024-2033
2034-2050
European Union [A]
$87-$132
$134-$170
Norway
$97-$226
$226-$226
United Kingdom
$94-$145
$146-$170
Canada (Federal)
$59-$113
$113-$125
United States of America (Federal)
$0-$42
$47-$125
Australia
$29-$61
$65-$125
All other countries
$0-$55
$25-$125
[A]Except for the Netherlands where the ranges are $87-159 per tonne (2024-2033) and $163-220 per tonne (2034-2050).
RT23 $/tonne
202420252030203520402050
Shell mid-price9687125136148170
IEA NZE50103110143176209255