Royal Dutch Shell has recently cancelled 10 major projects around the world in an effort to transform the company, chief executive officer Ben van Beurden and chief financial officer Simon Henry described at the company's 2016 Capital Markets Day.

“Our strategy should lead to a simpler company, with fundamentally advantaged positions, and fundamentally lower capital intensity. Today, we are setting out a transformation of Shell,” van Beurden said.

“We expect to see robust demand for oil and gas for decades to come, in a global energy system in a long-term transition to lower carbon fuels. As well as low oil prices today, we are seeing higher levels of price volatility, due to geopolitical change, the speed of information flows, and the pace of innovation in our sector.”

Shell views conventional oil and gas, integrated gas, oilsands mining and oil products as its “cash engines” going forward. The company views deep water and chemicals as its growth priorities, and is targeting shales and renewables key pieces of its future.

Recent cuts have erased about $45-billion in capital spending between 2014-2020, the company says.

“By capping our capital spending in the period to 2020, investing in compelling projects, driving down costs and selling non-core positions, we can reshape Shell into a more focussed and more resilient company, with better returns and growing free cash flow per share,” said van Beurden.

Henry presented this chart showing the projects Shell does, and doesn’t, have on the go.

Image: Royal Dutch Shell. FID: Final investment decision.