Sounds very sensible indeed

It comes after activist investor Third Point launched a shock attack on Shell, calling for the company to be broken up after taking a stake worth around $750m

Dan Loeb’s fund said Shell had “too many competing stakeholders pushing it in too many different directions” and should spin off its oil and refining operations, allowing it to invest more in renewables.

I’ve long muttered that for Big Oil the most profitable thing for shareholders might simply be that the companies stop investing in anything at all. Just go into run off with current fields etc. Return all profits to shareholders and have a capital budget – after maintenance – of nothing.

Further rumination leading to the idea that a raider – if one could raise the sums necessary – might well profit from a takeover and the installation of that plan.

9 thoughts on “Sounds very sensible indeed”

  1. It ought to be very profitable for them, much better than farting around with renewables. Once fuel prices reach double figures per litre maybe even Mark Carney, Bojo, Millipede, Ed Davey and co might figure out the problem. However the chances of that group of morons even detecting the problem are very small

  2. Bearing in mind that we’re going to keep need oil and gas for the foreseeable future, this ‘run off’ could take a while.

    The UK alone is going to be massively dependent on gas for a very long time.

    I wonder exactly how many wind farms we’d have to build in order to meet our electricity needs and create the excess electricity required for sufficient green hydrogen to make up for the intermittency of renewables? Which seems to be what Bozo is claiming will happen.

  3. Alas MC, it seems that ScoMo now intends similar idiocy in Oz.

    I’ve always voted Liberal for the best of all reasons, my parents did so. But now that they’re turning into Labor-heavy, it looks as though I’m going to have to find a party that’ll take care of my interests, not those of the green scammers.

  4. All these windmills. Turning bits.
    With what will they be lubricated, once no one is extracting oil?
    Whale blubber?

  5. If the oil majors stop developing new fields, they may find that the Saudis and Russians (and others) can ramp up production given a few years, and take up all the slack. Whatever happens with the supply side of oil, those who need it will pay far more than they are currently paying, if they must.

  6. @ the Coding Tim Don’t forget all the Vegans… They’ve no clue whatshowerver themselves, but their lifestyle would be utterly impossible without efficient worldwide logistics and a serious prerochemical industry for…well.. most of everything they consume. Food, clothes, shelter….

    Hard to keep a straight face when one of them starts spouting their …Ideas…

  7. johnnybonk
    October 28, 2021 at 3:55 pm

    I’ve always liked Zubrin’s proposal that, since their cars are almost flex-fuel capable now, the Yanks should pass the law requiring all new cars sold in the US to be full flex-fuel.

    The greens could get a hard on over all the bio-fuel they could burn, the do-gooders could sigh over the imported alcohol fuel from the Third World, any surplus coal or gas could be converted to methanol, and this would probably mean that the US’s market dominance would make flex-fuel vehicles the defacto world standard. Thus any major shortages or price rises would automatically be strangled by a rise in alcohol production.

    As you’d expect, attempts to pass the law have had a stake driven through their heart.

  8. Another thought being that if you can buy that level of influence for a mere USD 750m, maybe the oil companies aren’t quite the concentration of power the left thinks they are…

  9. The majors should definitely get out of further investment.

    I can then invest in the minor companies that take their place, and make an absolute killing.

    Because if the major oil companies leave oil, it sure as hell won’t mean oil is unprofitable.

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