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Tariq Siddiqui's picture
COO Upstream EP Advisors LLC

Oil & Energy | Business Development | Capital Projects | Offshore Wind -  Proven leader in offshore development and operations, with 25+ years’ expertise in managing business through cycles...

  • Member since 2021
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  • Oct 28, 2021
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According to activists investor Dan Loeb, It would be beneficial for Shell to split off its LNG and renewables divisions, leaving Shell’s upstream, refining, and chemicals operations to be separated from the greener divisions. He holds a $750 million stake in Shell. Loeb has criticized Shell for having too many irons in the fire

Whats happening?
  • With a market cap of $193 billion, is a global force in the energy industry and produces roughly 2 million barrels of oil per day.
  • Shell had earlier said that its oil production would decline by as much as 18% by 2030, and 45% by 2050 as the world moves towards greener energy sources.
  • Shell will produce more than a million barrels of oil daily, and Shell still plans on sinking $8 billion into oil exploration and pumping, with only $2 -$3 billion set aside for renewables and hydrogen
  • The sizable investments in oil exploration and smaller investments into renewables and hydrogen has drawn the ire of activists who feel this is not going far enough
  • It has been a unfavorable year for Shell. It recently sold its Permian Basin assets to ConocoPhillips for $9.5 billion and its Western Desert assets in Egypt to Cairn Energy. They had to slash their dividends and had unfavorable court ruling.
Imagining Unimaginable

A breakup of an energy company the size of Shell would reverberate throughout the energy industry.

 

 

 

 

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Matt Chester's picture
Matt Chester on Oct 28, 2021

The investor is, quite understandably, protecting their investment with this push-- but what about from an outside perspective? Would this split be beneficial to the overall activities shifting more towards the energy transition? Or is it important for them to be connected now so at least some of the oil profits can provide the necessary capital to fast-track the renewable investments? 

Bob Meinetz's picture
Bob Meinetz on Oct 28, 2021

I suppose the optics of combining LNG + renewables into a new company would help dupe a wary public into believing natural gas is "green", for a moment. But Shell and its 19th-century fuel, no matter how it's re-packaged, are a lost cause. For Dan Loeb and other fossil fuel investors, the only beneficial course of action is to sell now.

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