Shell’s strong focus on oil and gas requires it to search continually for replacement supplies, and exploration is a high-cost element of its operations.
Shell still uses the technique of flaring and burning gas from oil extracting sites as a way of dealing with unwanted by-products of its operations: this is considered to be environmentally unacceptable by many.
Shell has a strong presence in Nigeria, but this area is politically volatile and operations have been fraught with security problems for staff and attacks on production. The company may be forced to withdraw, compromising its network of resources and threatening its ability to meet production obligations.
The company is reported to be reviewing involvement with a windpower development near Blackpool, raising questions regarding its commitment to alternative energy sources.