Oil and gas to play a role for a 'long time': Shell

Oil and gas will play a role in the global energy needs for a "long, long, long time to come," said Shell chief executive Wael Sawan today.

Sawan is working to move beyond a dialogue that "seems to fixate" on the notion one must choose between fossil fuels like oil and gas or renewables like solar and wind.

"It's all. And we need them in abundance," Sawan told participants at CERAWeek by S&P Global conference in Houston today.

Stable oil production is deemed necessary by Shell as it transitions its customers to lower carbon solutions over the course of decades. Energy security in the EU is also top of mind for Sawan, who acknowledges the tough choices government heads must make when choosing where to spend their marginal dollar. But he still sees strategies that do not adequately address long term supply needs.

"I still think we rely too much on chance in that regard," said Sawan, but noted it is "definitely much more pragmatic and much more realistic than maybe a few years ago."

"The positive thing that we've tried to reinforce for Europe is that energy transition and energy security for you and Europe are one in the same, because you don't have too many options," Sawan said, highlighting coal decommissioning, nuclear project lead times and declining oil and gas production.

"Unfortunately, there's still more politicization of energy than there needs to be."

Freight disruption in the Red Sea is having "very little" effect on LNG movements, according to Sawan, largely because of supply and demand being "nicely balanced" on either side of the Suez Canal. Sellers on the east side can swap with counterparties on the west side to minimize disruption to trade flows.

By Brett Holmes