Shell unveils plan to withdraw from Russian oil and gas, halts spot purchases

Scott Barbour/Getty Images News

• Shell plc (NYSE:SHEL) to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas in a phased manner, aligned with new government guidance.
• The company will immediately stop all spot purchases of Russian crude oil and will also close down its service stations, aviation fuels and lubricants operations in Russia.
• “We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry. As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine,” said Shell Chief Executive Officer, Ben van Beurden.
• The company will also not renew term contracts.
• Also read: Europe takes step toward energy security as Russia threatens supplies
• As announced last week, New Shell CFO has full plate with Russia exit, shift to more renewables.

Comments

[notre]

Wonder why Bp is going up ? Did they sell their Gazprom investments yet.

[alex.c]

Reading what Shell has put out filled me with contempt for the company. A huge oil producer suddenly puts out public reports where they address us as if we were all 13 year old teenagers who are about to start crying!

Where does absolute B.S. come from? "We tried to make money on a cheap shipment, but we are really sorry... It was an accident, usually we don't care about stuff like that... We really care about butterflies, and being nice to each other and Inclusivity + Tolerance + Equity + Love (but not for the nazis) hi! hi!

If SHELL's management wishes to go down that evil road Hypocrisy and stupidity, well they can do it without my money!

Don't you people have any self-respect?

[BarkingShark]

Not buying from Shell anymore..

[newfruit]

Funny how people's tunes keep changing. I mean the US was still importing Russian oil until today, the EU still is.

[genomegk]

They had better be quick. We had already decided to stop buying gas from Shell.

[Stefan Redlich]

Typical emotional and stupid decision as almost all emotional decisions... Self sanctioning won't hurt Russia, won't end this war and will only hurt the west and in return all you get is some positive PR. What nonsense but yeah next winter all these woke people will wake up freezing with no money in their pockets after having already getting more and more desperate throughout the year as inflation and gasoline prices have exploded. Russia should just immediately stop all oil and gas exports to the West and within a few days/weeks the big reckoning will come.like it or not but energy is unaffordable with Russian oil and gas as renewables and nuclear energy are nowhere near enough to supply the world

[Bohdan Kucheriavyi]

@Stefan Redlich I wonder if you are going to say the same thing if Russia somehow manages to occupy Ukraine and starts bombing your lovely German town next.

[Stefan Redlich]

@Bohdan Kucheriavyi if he does that we will all be dead sooner rather than later so no I don't worry about that at all, just waste of energy

[genomegk]

@Stefan Redlich Appeasement does not work.

[Doctor E]

Guys, we're just shooting ourselves in the foot here.

[LK106218]

Those companies with US and Canadian based sources of crude will do very well this quarter. A company like COP that has focused on minimizing production cost must be near to record margin levels. Those EU based companies that have been pulling out of the Americas are regretting that move to rely on Russian sources. (BP, Shell)

[kmi]

Trolls > Shell making money.

The new era.

On the other hand, Shell self-sanctioning means oil price skyrockets so there's that.

[German-Investor]

@kmi So you think it makes sense to fund a war because you can make money? Why shouldn't Lockhead sell weapons to Russia, Syria, China and North Korea? Should Fedex deliver heroin from Mexico right to Washington? You shouldn't do everything that you are allowed to do. Sometimes it is just a dumb idea. And in the end it is also a better idea to make business-wise. You think it would help Shell and their brand if they buy oil direct from Putin?

[kmi]

@German-Investor

It's pretty amazing what kind of stupid stuff people make up to try and make a case. Like, I don't know, correlating heroin with oil. Wild.

Let me break it down into a simpler thought that your brain can actually process.

I think it's mind numbingly stupid to penalize global consumers of a global commodity over a localized war that can be resolved in other ways. The oil will find its way to those who choose to purchase it regardless, and the only people being harmed are the ones choosing to participate in the stupidity.

Shell allowing trolls to influence its business decisions which are otherwise beneficial for global consumers of energy is a bad decision on both ends.

If you can't comprehend how dangerous it is for the world to lose Russia's production in the face of a current structural supply deficit, then you shouldn't be commenting. And if you think that's the same as heroin, you have problems I can't help you with.

[genomegk]

@kmi Appeasing Russian territorial ambitions is worse than any fallout from sanctioning Russian oil.

[German-Investor]

Did take a long time...

[Tiki Bar Capital]

I suppose $SHEL's decision was inevitable. Yet I still think it's a shame for $SHEL not to buy spot Russian oil and gas at huge discounts to market prices. Paying the Russians a pittance for their natural resources strikes me as a pretty good way of Western Europe having its cake and eating it too.

[SqueakyToy]

As long as a murderous dictator is invading free, democratic Europe while threatening.nuclear strikes on America, there is no cake to be eaten — there is only a brutal, kleptocratic authoritarian to defeat.

[yhoomajor]

@SqueakyToy Only US/UK dictators are allowed to invade other poor countries.. like Iraq, Syria, Libya , Afghanistan and kill millions of innocent children, women and poor people.

[Ludo5312]

@yhoomajor Have you also noticed how the standards of russian trolls have gone down a lot since that land grabbing by putin in Crimea?
The trolls seem unaware of history in Afghanistan and how putin's army has decimated Aleppo in Syria. They were always disgusting, cruel and brutal. But now their little brains seems to put to use 1 same line over and over again. I hope you agree that they are a disgusting bunch!

[King Rat]

In 2011 post tsunami, Japan had setsuden (conserve electricity).
In 2016 post earthquake in Kumamoto we had sessui (conserve water).
Those were force majeure.

In 2022 we will likely have setsuyu and setsugasu (conserve fuel and gas).
This time it was 100% preventable. Even if Putini attacking Ukraine was inevitable, why the US committed to a Sitzkrieg in the war of energy independence is beyond me.
Japan has few natural resources but the US and Canada do nothing with their abundant reserves but make themselves dependent on terrorist states.

In 2025 we will likely have setsuden again as we turn to "green energy" that depends on Chinese manufacturing and rare earth elements Chinese are also hoarding. When China invades Taiwan, the ensuing tariffs will leave the rest of the world literally "powerless".
Biden will bungle that again as the US will not commit to harvesting their plentiful rare earth elements or manufacturing capacity.

Thank you in advance, Bungling Biden and Cackling Harris. When the world needs the US the most, the US plays the strategic version of "peace in our time". Finally Neville Chamberlain can sleep peacefully knowing he is no longer the worst player of political chess in the modern era.

[Ludo5312]

@King Rat

Have you also noticed how the standards of russian trolls has gone down a lot? Especially after that Russian land grabbing in Crimea?
Always disgusting, cruel and brutal, the little trolls seem unaware of history and how putin's army has decimated Aleppo in Syria.
I hope you agree that they are a disgusting bunch!

[blenkep]

@King Rat so what should the US do? I hear complaints but no one is offering solutions.

[notre]

@blenkep Should ask the Uk, all the rhetoric coming out of there but they have only taken 300 Ukrainian refugees. What a joke.

[Entreri]

Finally they do the right thing with enough pressure.

Few will buy Russian oil or assets. They buy at highly discounted prices = much less $ for Putler.

We must boycott all Russian products (Vodka et al).

[m63333]

@Entreri Does the ordering of a white russian violate those standards if made with american vodka?

[Greta Stocks]

Ask yourself:

1. Who is going to buy the Russian assets?
2. How much does the buyer have to pay?

Answers:

1. Russians and Chinese investors. Probably their oligarchs.
2. Pretty damn little

Then ask yourself:

In what way will this hurt the Russians?

[King Rat]

@Greta Stocks
Their feelings will be hurt until Europeans come back crying for more oil.

[marine_david99166]

@Greta Stocks How's the prosperity over there in North Korea with their limited markets?

[Calum Beck]

@Greta Stocks to answer your last question, see your answer to 2.

[Ludo5312]

The only right thing to do!
And we can all contribute, but putting on an extra sweater and drive our bikes for a while.

[User 52335558]

@Ludo5312 Let's see, 50-miles for me every day to/fro work. That'll only add a couple hours to my commute by bicycle. The good news is, the people who get government (taxpayer) handouts to pay their gas bills and don't have to drive to work everyday will be fine. 👍

[Ludo5312]

@inick2005i Admit is not for everybody, but the first option is a real one.
As for that last line... it is a bit of a give-away. It is so... well you know.

[wal shoe]

@Ludo5312
to say it with your own words: "Frankly, I suspect that you do not have 1 clue what you are writing about."

[Bohdan Kucheriavyi]

Great! Keep inflicting as much pain on putin's regime as possible until that dictator rots in hell.

[Ohi Ik]

A force for good. I salute you Shell. Happy to take the dividend hit, if any, as my contribution to pulling down vermin Putin.

[arcticfoxman]

Stupid.
Actually that's spelt Fstupid.

[TastyLaksa]

@arcticfoxman Why?

[FactDistortion]

@TastyLaksa Putin and China are getting those business almost for free as planned.

[LongTermActivist]

@FactDistortion Selling a product for free isn't good for business?