LONDON—Shell CEO Ben van Beurden is stepping down at the end of 2022 after nine years in charge, the energy giant said Thursday, a change that comes as oil and natural gas companies are under pressure to shift away from fossil fuels even as they see soaring profits from high energy prices.
Taking over Jan. 1 is Wael Sawan, a Lebanese-Canadian who has worked for Shell for 25 years and is now director of integrated gas, renewables, and energy solutions. The choice signals the focus of the London-based company to take what it calls a leading role in the energy transition.
“I’m looking forward to channeling the pioneering spirit and passion of our incredible people to rise to the immense challenges, and grasp the opportunities presented by the energy transition,” said Sawan, who has been a member of Shell’s executive committee for three years.
Natural gas prices have soared as Russia has curbed supplies to Europe, where an energy crisis is forcing governments to institute conservation measures and go back to coal and oil despite climate goals to ensure the lights stay on this winter.
Volatile oil prices soared above $120 per barrel in June, pushing gasoline prices at the pump to record highs in the United States. Crude has since fallen below $90.
That has translated to record profits for energy companies at a time when households and businesses are getting stung by rising costs. Some European governments have approved taxes on excess profits of energy companies to help households and businesses, and the European Union’s executive Commission proposed Wednesday a similar levy on electricity producers across the 27-nation bloc.
In late July, Shell posted record profits of $11.5 billion for a second straight quarter. That was up from $5.5 billion in the same three-month period last year, despite a hit worth billions from pulling out of Russia over the invasion of Ukraine.
Formerly known as Dutch Royal Shell, the company late last year left the Netherlands and consolidated its headquarters in London as it simplified its archaic corporate structure.
It has a goal of reaching net-zero carbon emissions by 2050 by investing in renewable energy, restoring forests, and taking other steps.
Last year, the Hague District Court ordered Shell to cut carbon emissions 45 percent by 2030.
