Royal Dutch Shell said it saw little risk of being left with “stranded assets” as the world begins to shift away from fossil fuels and promised to keep pace with the global transition to cleaner energy.

The Anglo-Dutch group said 80% of its current proved oil and gas reserves would be produced by 2030, when it expects demand for those hydrocarbons to be higher than it is today even under its most aggressive scenario for growth in alternative forms of energy.

Shell said it was confident that its reserves would remain competitive over that period at prices as low as $40 per barrel, compared with about $70 today, and that the group had enough flexibility to adjust longer-term investments in line with the changing energy landscape.

The assertions came in a report issued by Shell on April 12 on its strategy for adapting to a lower-carbon energy system.

Ben van Beurden, chief executive, said understanding what climate change meant for Shell was “one of the biggest strategic questions” facing the group and promised to “stay in step with society and our customers” in efforts to reduce carbon emissions.

The report came a week after Shell was threatened with legal action by Friends of the Earth, the environmental group, over its contribution to global warming, and weeks before a vote at its annual meeting on a resolution from activist shareholders calling for a faster shift away from fossil fuels.

Shell committed last year to disclose more information about “climate risks” to its business in response to mounting scrutiny from investors and regulators. The group has declared its support for the Task Force on Climate-Related Disclosures, which is developing voluntary guidelines on the issue under the leadership of former New York City Mayor Michael Bloomberg and Mark Carney, governor of the Bank of England and chair of the G20’s Financial Stability Board.

Carney has warned in the past that investors faced “potentially huge” losses from action to tackle climate change as fossil fuel reserves became “literally unburnable.”

In its report, Shell acknowledged that oil demand was likely to peak and subsequently decline but said the process would take decades to unfold.

Under the most rapid transition to low-carbon energy considered plausible by Shell, oil demand would grow by 1% a year between 2020 and 2025, then fall by 1% a year until about 2040.

In this scenario, more than half of global new passenger car sales would involve electric vehicles (EVs) by 2030 and by 2050 it would be impossible to buy an internal combustion engine anywhere in the world.

Even in that most bullish outlook for EVs, global oil demand in 2050 would still be 78 MMbbl/d—about 85% of today’s production—and 50 MMbbl/d to 60 MMbbl/d in 2070, according to Shell. This was because of continued growth in demand from the developing world and the difficulty of replacing oil in heavy transport, such as trucks and aeroplanes and in chemical manufacturing.

Shell’s report said further investment in exploration and production would be needed for decades because existing oil and gas reserves would decline faster than demand. However, it said “more stringent resilience criteria” would be used to focus capital on projects with lower break-even points and shorter payback periods.

At the same time, Shell would diversify into cleaner energy businesses such as renewable power and biofuels. The group has committed to spend up to $2 billion per year on “new energy” until 2020, with the prospect of bigger amounts in future.

Investments made so far include a stake in U.S. solar company Silicon Ranch Corp. and the acquisition of NewMotion, one of Europe’s largest electric vehicle charging networks.

Shell set an “ambition” last year to cut its carbon footprint—including emissions from its products—in half by 2050. That went further than most peers but failed to satisfy climate activists. They said a faster shift away from fossil fuels was needed to meet the goal of the Paris agreement to limit global temperature increases to well below 2 degrees Celsius above pre-industrial levels.