Good news for Arctic environmentalists: Royal Dutch Shell has announced that it will suspend its controversial drilling in the Arctic as part of a measure to cut back on major expenditures. Just recently, the company made its first profit warning in 10 years.
As the Financial Times reports, Shell had initially planned to resume drilling in the summer. But the announcement by Chief Executive Ben van Beurden to scale back on expenditures has put an end to these plans. Shell is even discussing selling off some of its assets.
Van Beurden explains that the belt-tightening would be marked by “hard choices” and explains that the company has “lost operational focus in some areas.” Some business operations may even have to be restructured as part of a new strategy.