Shell said Tuesday that it expects to take a charge of between $15 billion and $22 billion in the second quarter as a result of the shifting market conditions.
It's scheduled to report its financial results for the quarter on July 30.
The company said in a statement that it would continue to "adapt to ensure the business remains resilient." Shell cut its dividend in April for the first time since World War II in an effort to conserve cash.
The huge slump in demand for oil and gas this year is pushing many of the industry's biggest companies to accelerate a shift to cleaner fuels.
Shell has committed to achieving net zero carbon emissions from its own operations by 2050.