- 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.
For further details see:
Shell's Much-Publicized Green Plan Should Not Worry Investors