Shell bought an actual company instead of shares for cancellation. It looks like they're supporting LNG export... Does that mean that the Montney assets are not as good as we were led to believe?
Even if it isn't the best deal I applaud the effort
13 replies (most recent on top)
@19s
It’s not about “you either misjudged their strategic value or weren’t capable of executing on them…”
It’s about leadership — both then and now — being incapable of any real judgment. It’s about people reaching the top through networking, then siphoning off shareholders’ money through executive compensation and PSPs for themselves and their connected inner circle, with no care or concern for Shell's profitability. This has been the culture inside Shell for many years.
@19s I’m pretty sure Shell does not know how to run assets. They make money by accident almost and I think most of the money is made via money laundering by T&S.
the details are not weing but it is also ai slop with a repulsive and obvious pattern
@js
Start with Guyana.
ExxonMobil didn’t just stumble into a good asset — they built the most important oil province of the last 20 years. Guyana is now one of Exxon’s lowest-cost, highest-margin, fastest-growing engines. It’s printing cash at breakevens most companies would ki-l for. That’s not a nice-to-have — that’s a company-defining advantage.
And Shell had a seat at that table… and walked away.
“No regrets”? Of course not — because admitting regret would mean admitting you handed your competitor a generational asset.
Now the Permian.
Exxon doubled down, consolidated, and scaled. Today, the Permian isn’t just another basin for them — it’s a manufacturing machine: short-cycle, high-return, flexible production that complements long-cycle projects like Guyana. It gives them optionality across oil cycles.
Shell? Sold it to “strengthen the balance sheet.”
Translation: couldn’t manage capital allocation and operations at the same time, so they liquidated the problem.
And here’s the uncomfortable truth:
You don’t sell assets like the Permian and shrug off Guyana unless you either misjudged their strategic value, or weren’t capable of executing on them.
Either way, that’s not discipline — that’s missing the map while your competitor is drawing it.
Sawan can talk about LNG and “non-linear transitions” all he wants. Meanwhile Exxon quietly locked up the lowest-cost barrels on the planet and built a production growth engine that Shell now has to watch from the sidelines.
This isn’t hindsight bias.
This is what happens when one company plays offense… and the other convinces itself that retreat is strategy.
@f5 it is mostly gas and gas price in western canada was still in the toilet ....
In this interview with Bloomberg Podcasts, Shell CEO Wael Sawan discusses his leadership philosophy, the strategic direction of the company, and the complexities of the global energy transition.
Investment Review
Permian Basin Sale: Sawan defends the $9.5 billion sale of Permian assets. While acknowledging it was a high-quality asset, he explains the move was necessary to strengthen Shell’s balance sheet and reduce debt.
No Regrets on Guyana: Despite Guyana becoming a major oil success after Shell's exit, Sawan states he has no regrets. He emphasizes that decisions are made based on the information available at the time and that he respects the choices made by the organization.
Key Takeaways:
Pragmatic Strategy: Sawan emphasizes that Shell must play to its competitive strengths. While the company is looking toward the future, he argues that oil and gas remain essential for global energy security and affordability today.
The Role of Gas: He views Liquefied Natural Gas (LNG) as a critical "stabilizing force" in a non-linear energy transition, providing a versatile and reliable fuel as energy systems transform.
Operational Discipline: Since taking over in early 2023, Sawan has focused on making Shell "leaner and fitter." He defends past decisions, such as selling Permian Basin assets, as necessary steps to strengthen the balance sheet and pay down debt.
Leadership Style: He advocates for an "all-learning culture" over an "all-knowing" one, emphasizing the need for humility and adaptability in an unpredictable world shaped by AI and geopolitical shifts.
Future Outlook: Sawan expects Shell to evolve significantly over the next five years, particularly through the integration of AI, but maintains that hydrocarbons will continue to be a major part of the business for the foreseeable future.
Personal Balance: He highlights the importance of being "purposefully present," whether in high-stakes board meetings or at home having dinner with his family.
I hope it goes better than Permian.
Ah yes buying when WTI is pushing 100. That’s what She’ll does best. Buy high sell low
@ce trying to understand, does buying back shares give us cash to purchase a company? Or cash to use at all? Or does that money go into some funny money black hole? I get buying back reduces volume of shares and that in turn raises value with less shares traded but does Shell EC have that money to use at its discretion then? Can someone weigh in?
We buy back $3.5B shares per quarter and then issue $13.6B in shares to cover 75% of the purchase. Buying back shares is a piggy bank for acquisitions and in this case it took 1 years worth of buybacks.
wael buying literally anything but stock has also blown my mind
you are not alone
maybe we will sell the asset for bottom dollar in two years after firing everyone as a course correction
Canada is now cheap labour or at least that’s what we are told by cutting our JG bands
Wael is making his old friends in Canada happy. I remember how Shell canada was fired off back in 2016 during the heavy oils period.
Imagine you reading thisnwhen fired a few years back in Canada.