Categories: Economy

Shell considered leaving for the United States, but decided against it

The oil company Royal Dutch Shell has reportedly considered moving to the United States in 2021 instead of England. This was reported by the British business newspaper Financial Times on the basis of interviews with insiders. The choice would have been on the table because the US has more flexible environmental rules, suspects FD reporter Orla McDonald.

The US was an option for Shell in 2021, but eventually became England. (Jiri Buller/Shell)

“The company probably wanted a higher listing on Wall Street,” McDonald says. “Americans are not as strict when it comes to climate rules as we are in Europe”

If you look at the American oil giants, you will soon see that their stock prices are much higher than their European competitors. American companies like Exxonmobil and Chevron enjoy more flexible environmental regulations and invest less in green projects. “Shareholders really appreciate that,” says McDonald. For example, the price of European BP soared when it was decided to phase out the oil business less quickly.

So why is Shell based in London and not New York? ‘It’s a bit of speculation, but I can imagine it was a step too far for Shell. The company has its roots in Europe,’ says McDonald. ‘In addition, Shell has many employees who support the energy transition. They will be gone soon if Shell gives up green projects.’

Author: Niels
Source: BNR

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