Shell plc (SHEL) has announced an expected increase in oil and gas production, forecasting between 1.84 million and 1.94 million barrels of oil equivalent per day for the fourth quarter of 2025. This marks a slight rise from 1.83 million boe/d in the third quarter, attributed to the incorporation of the Adura JV. However, the company’s oil trading performance is projected to decline significantly due to a steep drop in crude oil prices, indicating the volatility of the global oil market.
Despite the anticipated production boost, Shell’s marketing and chemicals divisions face challenges. Adjusted earnings in marketing are expected to be under pressure due to seasonal demand fluctuations and a non-cash deferred tax adjustment. Additionally, the chemicals sub-segment is projected to see losses below break-even, attributed to volatile raw material costs and lower industrial demand. Lastly, Shell’s recent swap of Canadian oil sands assets will lead to an approximate production reduction of 20,000 barrels of oil equivalent per day, as part of its strategy to focus on more sustainable energy solutions.
