Shell has abandoned plans to cut oil production each year for the rest of the decade, in a shift in approach to firmly target fossil fuels and increase payouts to shareholders under its new chief executive. The FTSE 100 oil company on Wednesday announced that production would remain stable until 2030, after previously saying it would cut output by about 1-2% each year. Shell will invest $40bn in oil and gas production between 2023 and 2035, compared with between $10bn and $15bn in “low-carbon” products. Sawan was appointed as Shell’s chief executive in September, replacing Ben van Beurden who had surprised some activists and investors by putting in place a target of achieving net zero carbon emissions by 2050, albeit with only gradual reductions in fossil fuel output planned. Since taking over, Sawan has emphasised financial returns for investors. He told investors at the New York stock exchange that he wanted to “reward our shareholders today and far into the future”. While saying he wanted to lower emissions, he also repeatedly emphasised his belief that oil and gas would be required for the long term. In its strategy in 2021, Shell said it would aim for “an expected gradual reduction in oil production of around 1-2% each year, including divestments and natural decline”. However, Shell argued on Wednesday that the previous strategy did not constitute a commitment to cutting oil production steadily. It said it had in fact hit the target within seven months of announcing it because of the $9.5bn sale later in 2021 of its interest in al project in the Permian Basin, Texas. Shell’s output was 1.9m barrels of oil a day in 2019, and dropped to 1.5mls a day – a 21% decline. A Shell spokesperson: “Our target of a reduction in oil production by 2030 has not changed. We’ve just met it eight years early.” Shell’s announcement came on the same day that the International Energy Agency, a respected global energy watchdog, said the peak for global demand for oil would come before the end of the decade. In 2021, the agency said development of new oil and gas fields had to stop immediately to meet the goal of global net zero carbon emissions by 2050 and avoid climate breakdown. Climate campaigners criticised Shell’s renewed commitment to fossil fuels. Carla Denyer, the co-leader of the UK Green party, said: “For Shell to target more fossil fuel production and to increase payouts to shareholders is pure climate vandalism, and a sign that fossil fuel companies will not steer us to the greener future we all crave without political leadership from national governments.” Sawan announced a strategy update in New York in which Shell would focus on cutting costs and targeting its most profitable areas. Shell said it would grow its gas production business while keeping oil production steady, stabilising liquids production to 2030. It also announced a 15% planned dividend increase and a promise to return $5bn to investors through a share buyback. Sawan reaffirmed the company’s previous commitment to producing net zero emissions by 2050, although the company warned this was unlikely to be achieved “if society is not net zero in 2050”. As part of those plans, Shell said it would invest between $10bn and $15bn across 2023 to 2025 on “low-carbon” products including biofuels, hydrogen, electric vehicle charging and carbon capture and storage.