-- A new court case filed by Dutch environmental group Milieudefensie against Shell (SHEL) seeking to ban any new oil and gas development in the Netherlands was "unrealistic, unreasonable, and fundamentally misplaced," according to a statement by the oil supermajor on Tuesday.
Milieudefensie reportedly said that Shell must stop drilling new hydrocarbon fields to reduce climate-disrupting activities, and asked the company to reduce its emissions between 2030 and 2050, in line with the Paris Agreement.
Shell responded that the claim "ignores the role oil and gas will continue to play over the coming decades," and "is disconnected from the realities of the global energy system."
"Investments in oil and gas development will be needed to offset natural decline and ensure security of energy supply in the coming years as renewable energy sources continue to grow and become more widely available," the company said.
Shell also highlighted that discontinuing field developments will not reduce global emissions, as production rights will just be transferred to other companies.
Since the resources are owned by the respective countries, "it is up to governments, not Milieudefensie, to decide how to develop their natural resources," according to Shell.
In 2024, The Hague Court of Appeal dismissed Milieudefensie's first case against Shell, which sought a 45% reduction in emissions by 2030 relative to 2019 levels.
In May, the case will be heard by the Supreme Court in The Hague, following an appeal by the environmental group.
Shell said its oil and gas production only accounts for up to 2% of the world's total output, while state-owned companies contribute more than half of global production and 60% of reserves.
It aims to raise total Integrated Gas and Upstream production by 1% per year through 2030, with liquids production at around 1.4 million barrels per day.
Shell has invested around $20 billion in low-carbon platforms globally, and intends to expand the portfolio subject to demand and government policies, the company said.