The chief executive of the world’s second-largest energy company says his other car will soon be powered by a mix of gasoline and electricity in a sign that the world is going green.
Ben Van Beurden, CEO of Royal Dutch Shell, says he will switch this September to a plug-in Mercedes-Benz S550e hybrid from a diesel car, at least in part to reflect the reality of climate change and efforts such as the Paris climate agreement to combat it.
“The whole move to electrify the economy, electrify mobility in places like northwest Europe, in the U.S., even in China, is a good thing,” Van Beurden told Bloomberg TV. “We need to be at a much higher degree of electric vehicle penetration — or hydrogen vehicles or gas vehicles — if we want to stay within the 2-degrees Celsius outcome.”
Though symbolic, the announcement further cements a shift underway at Shell under Van Beurden’s leadership. In February 2016, the company acquired BG Group for $53 billion to create the world’s largest provider of liquefied natural gas. Two years earlier, Shell paid $5.4 billion for the LNG business of Repsol outside of North America.
Shell has estimated that worldwide demand for oil could peak as soon as a decade from now.
The International Energy Agency estimates that demand for oil will continue to grow worldwide until 2040, primarily because of a scarcity of substitutes that make economic sense in aviation, petrochemicals and trucking.
Still, demand for oil from passenger cars is expected to decline over the next quarter century despite a doubling in the number of vehicles, “thanks mainly to improvements in efficiency, but also biofuels and rising ownership of electric cars,” the IEA said in November.
Both the United Kingdom and France recently announced plans to ban the sale of new gasoline-powered cars by 2040.
Volvo in June became the first major automaker to say it will end reliance on internal-combustion engines. All the models Volvo brings to market starting in 2019 will either be hybrids or powered by batteries.