The petroleum giant is adjusting to falling oil demand, cutting both its dividend and its capital budget
The difference between Royal Dutch Shell and Exxon Mobil (NYSE:XOM) is that Shell knows it’s a zombie, something Exxon refuses to believe. Regardless of whether you trade the Dutch version of Shell stock (NYSE:RDS.A) or the British version (NYSE:RDS.B), you’re buying an fossil fuel company that is now promising to disappear.
Shell CEO Ben van Beurden put it this way: “There is an energy transition underway which may even pick up speed in the recovery phase of this crisis and we want to be well positioned for it.”
That has meant making some hard decisions. Shell is increasing its investments in wind and solar energy, and in power distribution, while it cuts spending on oil exploration and refining.
