Oil giant Shell firmly believes that downstream and fuel retail will remain to be key business in the future. The oil major expects annual earnings in the retail segment to grow by more than $1.5 billion by 2025, from today’s $2.2 billion.
More than 10,000 new sites will bring its total number of stations to 55,000 around the world, serving some 40 million daily customers. Half of those new stations will be located in the fast-growing markets of China, India, Indonesia, Mexico and Russia.
Shell expects an increase in premium fuels and differentiated marketing programmes such as solutions for fleet businesses. More alternative fuels at the pump will also be increasingly normal.
In order to increase profit and not be fuel-dependent, Shell will open around 5,000 new convenience stores and selective upgrades to existing stations worldwide.
“We are making products from today’s technologies as good as they can be, with better fuels and lubricants. We are also helping to deliver tomorrow’s products, services and technologies. From battery-electric vehicle charging to next-generation biofuels; LNG for transport to hydrogen; and smartphone apps that enable more efficient driving. We are also working to reduce emissions from our own operations,” said John Abbott, Downstream Director.
The Anglo-Dutch company also said it plans to invest $7 billion to $9 billion a year across its downstream business.
Source - Petrolplaza
