Maybe there is hope:
"This has been Wael’s change in language, towards the XOM / CVX message that the world needs energy for human justice. Some vegan in sandals is deluded if they think they are saving the environment while people with a miniscule number of relative economic choices, starve. “Environmentalism is a luxury”. "
They are holding an investor meeting in NYC this week. Why? From analyst Paul Sankey,
"So, a Shell analyst meeting in London would no doubt attract a load of hysterical middle-class Brits waving signs written using oil products. Plenty of them work for MI6, in my view, or perhaps, as was suggested to me in DC regarding the anti-US natgas lobby, are Russia-financed. Russia surely massively backed the German Green party, insane pursuit of nuclear shutdowns."
Sawan, who took the helm in January with a vow to improve Shell’s performance as its shares lag rivals, said oil and gas will remain central to Shell for years to come, insisting that efforts to shift to low-carbon businesses cannot come at the expense of profits. His more cautious approach to the energy transition marks a change in tack from his predecessor Ben van Beurden who introduced the carbon reduction targets and the energy transition strategy.
Shell scrapped in recent months several projects, including in offshore wind, hydrogen and biofuels, due to projections of weak returns. It is also exiting its European power retail businesses, which were seen only a few years ago as key to its energy transition. At the same time, Shell reported record profits of $40 billion last year on the back of strong oil and gas prices.
Sawan, a 48-year-old Canadian-Lebanese national, who previously headed Shell’s oil, gas and renewables divisions, will detail his vision at the June 14 event in New York, which will include updates on capital allocation, shareholder payouts and “strategic choices we’re making,” he said recently.
He concludes with
Wael has a major opportunity, let’s hope he uses it to talk US investors, not European politicians. Shell has to lose its sense of politico-bureaucratic responsibility to fringe investors, simply alternatively seen as political opponents that own no stock.
Why pander? For complex European structural reasons in a continent that offers poor demography, weak GDP growth, atrocious energy policy in terms of what has been achieved at what cost, and ongoing massive issues in energy. Why would you let EU politicians drive your corporate strategy? Their energy policy has been awful, borderline criminal, given the Ukraine tragedy.
Looking back at an earlier Shell note, we said you could buy the strategy for altruistic reasons, but buying it with a fiduciary duty to make financial returns for clients was misguided.
The Ben van Beurden (previous CEO) message came across to US investors as the response of a company that has been found guilty by a jury of European environmentalists, and that Shell would do everything it could to appease them. Yet they cannot be appeased. It was like coming on to a podium and saying “environmentalist think we should commit suicide, so we are starting with 1,000 cuts”.