Shell wants to save 30 to 40 percent of the costs of oil and gas production by the end of this year.

In this way, the company wants to better focus on sustainable energy.

Sources say that to

Reuters

news

agency on

Monday

.

The project is known internally as Project Reshape and the savings it will bring are in addition to previously announced savings of around € 3.4 billion in the face of the corona crisis.

It is of vital importance for Shell to save costs if it wants to focus more on sustainable energy.

The margins in that market are relatively small.

In addition, the company expects to be more affected by competition, as there are already established parties in the market and oil companies such as BP and Total are also doing their best to get a piece of the market.

A Shell spokesman tells

Reuters

that the company is indeed reviewing its current strategy.

"We do this to enter the energy transition as a strong company and because we want to be a simpler organization. We are currently studying several options and scenarios for this."

One of those scenarios would be to start saving costs at petrol stations.

Shell now has 45,000 of these worldwide, with which the company owns the largest network of petrol stations.

Shell believes that the filling stations will be crucial for the transition, but wants to take a critical look at the costs of those stations.

Shell isn't the only oil and gas company looking to change its strategy.

Competitors BP, for example, is also working on this.