The conflict between energy giant Shell and the Dutch environmental organization Milieudefensie is escalating further. In a sharply worded letter, Shell dismisses the organization’s new climate demands as unrealistic and disconnected from how the world’s energy system actually operates. At the same time, the company highlights the risk of rising energy prices – and much now suggests a new lawsuit may be looming.
In an internal letter that has become public, Shell’s management directs harsh criticism at Milieudefensie’s latest demands. The company argues that the demands lack grounding in reality and do not take into account how the world’s energy supply is structured.
The heart of the conflict is clear: Milieudefensie wants Shell to immediately halt all investments in new oil and gas fields. The company categorically rejects this demand.
Energy prices and public worry
The timing of the conflict is not without significance. As fuel and gas prices rise – in part due to geopolitical tensions – many households have faced greater economic hardship.
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Surveys show that a significant share of the population is worried about meeting their ongoing expenses. Shell points to this as an argument that the continued production of fossil fuels is still necessary to keep energy prices manageable.
“The world cannot do without oil and gas”
Shell emphasizes that the :censored:6:cdd6bbaa89: energy system remains heavily dependent on fossil fuels. The company refers to analyses from the International Energy Agency (IEA), showing that if investments in new oil and gas fields were halted immediately, :censored:6:cdd6bbaa89: oil production would drop sharply – by about 8 percent per year over the coming decade.
According to Shell, such a development could not be compensated for by renewable energy at the same pace, which in turn would lead to even higher energy prices.
Environmental organization’s demands
Milieudefensie has put forward several extensive demands. In addition to halting all new investments, the organization wants Shell to cease trading oil and gas from new fields, even if these are extracted by other actors, and to neither sell nor transfer rights to new oil and gas projects.
The organization claims this could prevent billions of tons of CO2 emissions :censored:6:cdd6bbaa89:ly.
“Misunderstanding of how the system works”
Shell, however, believes the demands are based on a mistaken view of reality. If the company refrains from exploiting certain assets, other players will take over – since in the end, it is states that control natural resources.
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The company also stresses that it is governments, not individual organizations, that should decide how natural resources are used. Stable and affordable energy is highlighted as a fundamental requirement for both the economy and people’s everyday lives.
New legal process on the horizon
In the background of the conflict is an earlier lawsuit in which Shell was initially ordered to substantially reduce its emissions, but the verdict was later overturned in a higher court. The case is now awaiting review by the Supreme Court.
With the latest letter, it is clear the disagreements remain – and that a new, protracted legal battle between the parties may be approaching.