I think people have forgotten the real reason why Shell is valued lower than US peers. It is simply because management decided earlier to sell off oil assets and those assets were not around anymore when the price went up. Wael should not blame or put pressure on the current remaining business because of a wrong earlier decision. Investors are pulling out and soon, Shell people survey will show just how frustratef and confused the staff are with this false premise and mis guided thrust.
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European oil companies suffer from excessive taxation and regulation. Also, Shell went "woke", and wasted billions on useless Greta-approved energy projects (deindustrialization) instead of investing in proper oil and gas projects like in Exxon did in Guyana.
Onshore oil is done… A lot of them were done over the last handful of years. Shell was one of them.
The others(competitors) will pack up here in the upcoming 3-5 years.
It’s not just Shell. It’s the oilfield. There are 30% of the rigs running compared to a decade ago and the trend will continue.
Side note: Why is there a lot of crying about “woke?”
Shell seems to put a low priority on delivering cash to shareholders vs virtue signaling. Buy Backs don't seem deliver much value.
“Woke” seems to be the current favorite knee jerk by the reactionary minority when threatened with something uncomfortable. Notice how it doesn’t require any thoughtful counter argument or logic?
“Oh that’s just woke”.
So profound, isn’t it? Impressive.
The golden age of oil is past. Companies were able to capitalize on easy finds and little oversight of production methods which ignored environmental impact and health.
Now it’s all about pushing volume through mini-marts.
If Shell had really been smart, they’d have gotten into bottled water. Gallon for gallon, margins are much higher than gasoline.
The fact exploration haven't discovered anything significant is a long time, either poor exploration department or could be attributed to management not willing to risk anything. Production will not help the share price jump, significant material discoveries will. Lets get off this woke wind power nonsense, and start making real money