Entering text into the input field will update the search result below

Shell's Much-Publicized Green Plan Should Not Worry Investors

Apr. 02, 2021 8:56 AM ETShell plc (SHEL)CVX, RYDAF, RYDBF, SU, XOM, SU:CA89 Comments
Zoltan Ban profile picture
Zoltan Ban


  • Shell's massive pivot away from oil & gas production and into green energy is motivated by its lack of ability to replace oil & gas reserves.
  • At the root of Shell's inability to maintain oil & gas reserves is the fact that, unlike many peers, it tends to shun projects like shale, which are less profitable.
  • Shell's upstream segment is set to shrink but it is also likely to be more profitable compared with many of its industry peers.
  • The plunge into the green energy boom may seem financially risky, but Shell could benefit from government support for the industry.
  • Shell's core business will be neither its upstream oil & gas production, nor its growing green sector, but rather its LNG and petrochemicals sectors, where the outlook looks bright.

Shell Tanker Drivers Return To Work Following Strike
Photo by Jeff J Mitchell/Getty Images News via Getty Images

In its February strategy outline, Shell (RDS.A, RDS.B) announced a set goal of zero net emissions from its operations by 2050. With the target being three decades away, it resembles pie in the sky ambitions

This article was written by

Zoltan Ban profile picture
My name is Zoltan Ban,  I have a BA in economics. I am a personal investor with over a decade and a half of active trading experience.

Analyst’s Disclosure: I am/we are long SU, RDS.A. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.