Shell’s Renewable Retreat: Why Save the Planet When Profits Are This Good?

Posted by John Donovan: 20 Nov 24

Ah, Shell — the corporate personification of “Why try when you can cash in?” Remember when they promised to save the planet? Yeah, neither do they. Turns out, pivoting to renewables isn’t nearly as lucrative as just sticking to the same old planet-choking business model. And if there’s one thing Shell and its friends at BlackRock love more than a warm, thriving planet, it’s cold, hard cash.

Profits Over Planet: The Fossil Fuel Formula

Let’s rewind to 2020, when oil prices tanked, and fossil fuel giants were scrambling like toddlers caught with crayons on the wall. With demand in free fall, companies like Shell suddenly discovered their “green hearts” and started making grandiose pledges to curb emissions and embrace renewables. But fast forward to today, and it’s clear those pledges were little more than a PR stunt.

CEO Wael Sawan practically said the quiet part out loud: “We do not see ourselves as being advantaged in renewable generation to create material returns over others.” Translation? If it’s not wildly profitable, we’re not interested. Forget saving the planet — Shell’s focused on saving its profit margins. And Wall Street, unsurprisingly, is clapping like a trained seal.

The Market Loves Fossil Fuels (And Hates the Earth)

Shell isn’t alone in this shameless backslide. ExxonMobil, that paragon of environmental stewardship, has outperformed Shell and BP by largely ignoring renewables altogether. Exxon’s CEO Darren Woods even had the audacity to boast about resisting the wind and solar trend: “I had a lot of pressure to get into the wind and solar business.” But why bother when you can rake in profits from good old oil and gas? Their stock price has surged over 70% since 2019. And Shell? A mere 15%. Guess going green really isn’t their color.

Investors, too, have made their priorities clear. The median return for big oil hit a juicy 11% last year, compared to a measly 2% for renewables. And those same investors — including giants like Vanguard and BlackRock, who own sizable chunks of Shell — couldn’t care less about pesky details like rising global temperatures. Their motto? “Show me the money.”

The Renewable Reversal: Backpedaling Into Oblivion

BP, that other British “greenwasher,” once vowed to slash oil and gas production by 40%. Fast forward three years, and they’ve not only walked that back but also doubled down on fossil fuels. As BP’s CEO Murray Auchincloss told analysts: “We will be very, very returns-focused.” Because why aim for survival when you can aim for short-term shareholder happiness?

And Shell? They’re scaling back emissions targets faster than you can say climate catastrophe. Forget wind and solar; Shell’s stepping back because, in their words, they’re not “advantaged.” You know what they are advantaged at? Extracting oil, dumping carbon into the atmosphere, and watching the dividends roll in.

WTF, Shell?

Let’s recap: Shell and its oil giant buddies made a big show of caring about the planet, only to slam the brakes as soon as renewables proved less profitable. Instead of leading the way toward a sustainable future, they’ve chosen to double down on the very industry driving the planet toward climate hell.

But hey, at least the shareholders are happy. BlackRock’s champagne flutes are practically overflowing with oil profits, while the rest of us watch the planet burn. Because why invest in saving humanity when you can bank on its demise? Clap it up for Shell, folks — the ultimate sin stock.

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