Shell posts strong profit thanks to rising oil prices.
Shell has reported earnings of $6.2 billion for the third quarter, showing a significant increase from the previous quarter, but a drop from $9.4 billion in the same period last year when oil and gas prices spiked due to Russia’s invasion of Ukraine. The recent increase in profits is attributed to higher oil prices, increased oil and gas production, and improved earnings from refining and gas trading.
Oil prices have been lower in comparison to the period following the invasion of Ukraine but have risen recently, partly due to production cuts by OPEC+ members to support the market. This recent increase in prices is seen as a response to concerns about weakening global demand. The World Bank has warned that ongoing conflicts in the Middle East could drive crude oil prices up to $150 a barrel, compared to the current price of around $85 per barrel.
Shell’s announcement of a $3.5 billion share buyback program comes as the company plans to return a total of $23 billion to shareholders this year. These payouts have drawn criticism from climate campaigners who argue that the company should prioritize investment in clean energy and renewable solutions.
Shell has recently shifted its strategy to focus more on oil and gas, which has led to job cuts in its low-carbon solutions division. The company’s emphasis on fossil fuels has raised concerns among environmental groups, who argue that it should be investing in renewable energy rather than expanding its oil and gas operations.
Shell’s decision to return substantial sums to shareholders through a share buyback program has drawn criticism from climate campaigners and environmental groups. They argue that the company should prioritize investment in clean energy and renewable solutions, rather than boosting oil and gas operations and providing payouts to shareholders.
Jonathan Noronha-Gant of Global Witness criticized the move, suggesting that Shell’s shareholders have benefited significantly from the turmoil in fossil fuel markets, which has allowed the company to generate substantial profits. He called for Shell to invest in clean energy rather than doubling down on oil and gas and shareholder payouts.
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Greenpeace campaigner Charlie Kronick expressed frustration with oil companies that appear to prioritize their profits over environmental concerns. He argued that while oil executives may claim to be concerned about the planet, their actions, such as job cuts and investments in new fossil fuel projects, suggest otherwise.
Shell’s shift in strategy to focus more on oil and gas, along with its plans to reduce its low-carbon solutions division’s workforce, has raised concerns about its commitment to addressing climate change and transitioning to cleaner energy sources. Environmental advocates are calling for greater investment in renewables and a more substantial shift away from fossil fuel
