Shell expands lower-carbon energy solutions while cutting emissions

The View from HETI

Shell’s emissions reductions are happening across global operations. Photo by Alishia Abodunde/Getty Images

Shell’s approach to sustainable development reflects an integrated value chain perspective—reducing emissions from oil and gas production, transforming downstream businesses to offer more low-carbon solutions, and building new energy businesses at scale. The company’s 31% reduction in Scope 1 and 2 operational emissions since 2016 demonstrates that this integrated strategy delivers results.

Three Strategic Priorities Drive Progress

Leading Integrated Gas: Shell is growing its world-leading LNG business with lower carbon intensity, meeting rising demand for natural gas as a transition fuel and foundation for renewable energy integration.

Advantaged Upstream: The company is cutting emissions from oil and gas production while keeping output stable, proving that operational excellence can reduce environmental impact without sacrificing energy security.

Differentiated Downstream, Renewables, and Energy Solutions: Shell is transforming its businesses to offer more low-carbon solutions while reducing sales of traditional oil products, positioning the company for the evolving energy market.

Shell’s emissions reductions are happening across global operations:

United States: Significant emissions cuts from production assets through operational efficiency and technology deployment

Malaysia & Philippines: Emissions reduction programs at offshore operations demonstrating that low-carbon production works in diverse environments

Norway: Continued emissions intensity improvements from mature assets, showing that even older fields can decarbonize

Whale Partnership Demonstrates Innovation

Shell’s recent partnership with Chevron at the Whale deepwater asset showcases what’s possible with next-generation project design. By integrating emissions reduction strategies from the start, the partnership has lowered the greenhouse gas intensity approximately 30% over the project lifecycle relative to similar deepwater oil and gas production assets.

Shell’s strategy to deliver more value with less emissions includes climate change transition plans, mitigation actions and decarbonization levers supported by a suite of processes and greenhouse gas emission reduction targets such as:

2025 Results:

Eliminated routine flaring from upstream operations

Maintained methane emissions intensity below 0.2%

By 2030:

Halve Scope 1 and 2 emissions under operational control (vs. 2016)

Achieve near-zero methane emissions

Reduce Scope 3 net carbon intensity (NCI) by 15-20% (vs. 2016)

Cut customer emissions from oil products by 15-20% (vs. 2021)

By 2050:

Achieve net zero emissions across Scopes 1, 2, and 3

Across all strategic initiatives, Shell prioritizes trading and optimization capabilities that maximize value while minimizing emissions. This commercial approach ensures that the company’s energy transition strategy creates long-term shareholder value while advancing climate goals.

Shell is building an integrated energy business for the low-carbon future by delivering the energy products customers need today while investing in the solutions they’ll need tomorrow.

As a steering-level member of HETI, Shell exemplifies the leadership and commitment required to transform Houston’s energy sector while maintaining global energy security.

———

This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog . Explore Shell’s energy transition strategy at: https://www.shell.us/about-us/sustainability.html, and read the full analysis here: https://htxenergytransition.org/wp-content/uploads/2025/08/07.18.25-HETI-Leadership-Narrative-Report-V2_pages-1-2.pdf

The road, then, is not entirely smooth, but the direction is clear: EVs are on their way. Photo via Getty Images

EV technology is well on its way for lower carbon impact, Houston expert says

guest column

Are electric vehicles at a tipping point? In a word, yes.

And yes, I know that this has been said before — more than once. Predictions of electric vehicle sales have been notoriously over-optimistic. An article by my own company projected sales in New York could be as high as 16 percent by 2015; in fact, it was about 1 percent in 2020. But — and this has been said before, too — this time is different. The realities on the ground are catching up with the hope, or the hype, or both.

While there are only 11 million EVs on the road now, EV registrations rose more than 40 percent in 2020 — although car sales dropped 16 percent that year. So far in 2021, EV sales are up another 80 percent. In the United States, sales of EVs doubled as percent of the total between the second quarter of 2020 and the same period last year.

The momentum is real. What’s changed?

For one thing, global car manufacturers are re-tooling for EVs in a big way. It’s interesting that at the September auto show in Germany, almost all the models presented were electric, like this sleek saloon from Mercedes, which has announced plans to go all-electric by the end of the decade. GM, too, has said it wants all its vehicles to be emissions-free by 2035.

From 2020 through the first half of 2021, more than $100 billion was invested in EVs, and carmakers have announced more than $300 billion in additional investment. That money is producing hundreds of different models, meaning that there are vehicles available that normal people, not just enthusiasts, want to buy. All of the top 20 global auto manufacturers are investing big-time in EVs.

For another, while the sticker price for EVs is generally higher, the economics are improving. On a total-cost-of ownership basis—meaning how much they cost to run compared to conventional cars—they already make sense in many markets, particularly given rising gas prices. At the same time, widespread government subsidies to new EV buyers take some of the sting out of the sticker shock. As more vehicles are produced, costs will likely fall.

Finally, the market context is changing — quickly and radically. The European Union is proposing an effective ban on conventional cars by 2035, as is Britain. California and New York are both requiring that all new vehicles sold be zero-emissions by the same year. Japan has plans to phase out gas-powered cars over roughly the same period. The US federal government has set a 50 percent target for electrification and allocated serious money to charging infrastructure. The trend is clear: the future is electric.

I can’t say when that future will arrive, but I suspect it will be much faster than in the recent past and probably not as fast as the optimists would like. Global sales are forecast to reach 10.7 million by 2025 and more than 28 million by 2030. But, of course, forecasts have been wrong before. Remember, too, that cars and trucks have a long shelf life; a significant percentage of the 1.4 billion on the road now are going to be on the road a decade hence. In addition, there could be geopolitical and supply roadblocks in the form of limited supplies of components like nickel, cobalt, and lithium, which are used in the production of batteries. I suspect that innovation and ingenuity will find a way around if shortages do occur — as is already happening. But if the cost of alternatives is high, that could drive up prices and affect the overall economics of EVs.

The road, then, is not entirely smooth, but the direction is clear: EVs are on their way.

------

Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn.

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Houston energy startups named finalists for 2026 Innovation Awards

Meet the Innovators

InnovationMap.com, EnergyCaptialHTX's sister website, has revealed the finalists for the 2026 Houston Innovation Awards, and the local energy sector is well-represented throughout the awards.

The sixth annual Houston Innovation Awards program returns in an all-digital format this fall to honor the best of Houston's innovation ecosystem, including startups, entrepreneurs, mentors, and more.

Finalists were determined by an esteemed panel of judges. The panel reviewed applications across 10 prestigious categories to determine our finalists. They will select the winner for each category, except for Startup of the Year, which will be chosen by the public via online voting launching later this month.

We will announce the honoree of our annual Trailblazer Award in the coming weeks, then stay tuned as we unveil all of this year's winners on InnovationMap.com in mid-November.

Without further ado, here are the 2026 Houston Innovation Awards finalists:

Minority-founded Business

Honoring an innovative startup founded or co-founded by BIPOC or LGBTQ+ representation:

AI Made Fun
Deep Anchor Solutions
HEXAspec
Prana Surgical
Torres Orbital Mining Inc.

Female-founded Business

Honoring an innovative startup founded or co-founded by a woman:

Adair
ARIX Technologies
Bairitone Health
FlowCellutions
ParaDocs Health

Energy Transition Business

Honoring an innovative startup providing a solution within renewables, climatetech, clean energy, alternative materials, circular economy and beyond:

Capwell Services
FlowCellutions
Hertha Metals
Mars Materials
Solidec

Health Tech Business

Honoring an innovative startup within the health and medical technology sectors:

Bairitone Health
InformAI Inc.
Prana Surgical
Skybound MedTech

Deep Tech Business

Honoring an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors:

Casimir
Focis AI
Machine Saver Inc.
Square Robot
Venus Aerospace

Startup of the Year (People's Choice)

Honoring a startup celebrating a recent milestone or success. The winner will be selected by the community via an online voting experience:

Fluxworks
IronLattice
Lumino
Progress Report
Rosarium Health
Thread
TokenRoster

Scaleup of the Year

Honoring an innovative later-stage startup that's recently reached a significant milestone in company growth:

Erock
Hertha Metals
Venus Aerospace

Incubator/Accelerator of the Year

Honoring a local incubator or accelerator that is championing and fueling the growth of Houston startups:

Activate
Impact Hub Houston
MarMo Innovation

Mentor of the Year

Honoring an individual who dedicates their time and expertise to guide and support budding entrepreneurs:

Al Danto, Rice University
Eric Rubenstein, New Climate Ventures
Jeremy Pitts, Activate
Joe Alapat, Liongard
Kyle Judah, Rice University's Liu Idea Lab for Innovation & Entrepreneurship
Rachel Bickham, Bickham Services Unlimited LLC

Trailblazer Recipient

To be announced

Energy AI company opens first U.S. office in Houston after Halliburton deal

houston expansion

Building on its partnership with Houston-based oilfield services provider Halliburton, energy-sector AI company Shape Digital recently opened an office at The Ion. It’s the company’s first U.S. location.

Shape Digital’s workforce in Houston includes employees specializing in tech support, business development and client services. The company’s local hiring projections and headcount weren’t available. The new office will be located within Industrious at the Ion, according to Rice Alliance.

A key driver of the new Houston office: The company forecasts North America will account for more than 20 percent of its business in 2027.

“North America is a critical market for industrial innovation, and Houston sits at the center of companies driving that progress,” Caio Sene, vice president of client services at Shape Digital, said in a release. “Growing our presence here allows us to work alongside operators as they look for practical ways to turn existing operational data into clear recommendations for what to do next.”

Shape Digital, which also has offices in Singapore and Brazil, develops decision-making platforms for the oil and gas sector.

The Ion District office gives Shape Digital a presence close to Halliburton’s headquarters. In May, the two companies forged a partnership to combine Halliburton’s Digital Field Solverdecision-making system with Shape Digital’s AI portfolio.

Shape Digital layers AI software atop existing operations data rather than replacing legacy systems or adding new software.

The company’s suite of AI agents draws on more than 200 operations-monitoring algorithms, continually learning from company and industry data. The suite comprises four products: Shape Aura, Shape Lighthouse, Shape Lumen and Shape Reef.

Shape Digital says that by working with a customer’s existing operations data, it can deliver ROI in less than two months without any additional investment in equipment or infrastructure.

The company is a 2021 spinoff of Japan-based Modec. Modec builds, owns, and operates floating offshore oil and gas production facilities. Its Modec America subsidiary is based in Houston.

This article originally appeared on our sister site, InnovationMap.

Houston energy startup names former Cheniere execs to C-suite

new leaders

Houston-based energy infrastructure startup Joulent has brought aboard a new chief financial officer and new chief operating officer—both former executives at Houston-based Cheniere Energy.

The C-suite moves come three months after Joulent raised $1.75 billion from National Grid Ventures.

Michael Wortley joins Joulent as co-president and CFO. Wortley most recently was executive vice president and CFO at Cheniere, an LNG producer and exporter.

In conjunction with Wortley’s hiring, Brian Boland, who was Joulent’s interim CFO, has been named executive vice president, chief investment officer, and head of strategy.

Corey Grindal comes to Joulent as co-president and COO. Grindal most recently was executive vice president and COO at Cheniere.

“As Joulent evolves to meet the growing demand for power infrastructure, our expanded leadership team will help ensure we continue delivering the execution certainty our customers, partners, and investors expect,” Chris James, Joulent’s founder and CEO, said in a press release.

“Corey and Michael are accomplished operators with exceptional records of building and leading world-class energy infrastructure businesses, where they have embedded a culture defined by operational excellence and disciplined execution,” James added.

Joulet builds dedicated power-generating facilities that feed directly into data centers and other power-dependent facilities. This eliminates the need for companies to draw power from grids.

“With an initial multi-gigawatt development portfolio and strategic partnerships across the energy, infrastructure, and data center ecosystem, Joulent is helping remove power constraints to enable the next chapter of American innovation and U.S. reindustrialization,” the company says.

The $1.75 billion minority investment from National Grid Ventures complements Joulent’s existing partnerships.

Joulent, founded in 2023, emerged from stealth mode this summer. The company was founded by investment firm Engine No. 1.

Joulent’s first project, the Project Kilby natural gas facility in West Texas, will be co-located with a Microsoft data center. It’ll deliver about 2.67 gigawatts of power under a 20-year deal between Microsoft and Energy Forge One, a 50/50 joint venture between Chevron and Joulent.

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