Oil will not go out of fashion overnight, says Shell CEO

Chris Ratcliffe | Bloomberg | Getty Images

Ben van Beurden, chief executive officer of Royal Dutch Shell Plc.

Demand for oil will not shrink overnight despite governments preparing for a transition into electric cars, the CEO of Shell told CNBC on Thursday.

“Even in the most aggressive scenario, where policies really work at their best, where technology really makes a lot of strides in the near future, oil isn’t going to peak before the late (2020s) or early 2030s and when it does peak it’s not going to go out of fashion overnight,” Ben van Beurden, chief executive officer at Royal Dutch Shell said.

“Supply will shrink faster than demand can shrink and therefore working on oil and gas projects will remain relevant for many decades to come,” he added.

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