In order to identify and assess the tools it may take to dismantle a corporation like Shell, we first need a good understanding of how the company operates in the context of the global political economy. What tactics have helped Shell to become the powerful oil and gas major it is today and which ones is it likely to pursue in future?
Looking at the oil and gas sector at large we see that Europe’s listed oil companies lost a total of €360bn in market value and Shell has nursed an incredible 60% declinein market value in 2020. How has this changed in 2021? Is this the metric by which Shell and the larger fossil fuel sector measure their performance? What do the coming years hold for Shell, and how does this inform the tactics we use to unravel their power?
Additionally, over the past two years, the fossil fuel sector has received massive bailouts due to the COVID pandemic. The Bank of England bought debt from Shell as part of its COVID stimulus program and the company was able to buy cheap bonds from the European Central Bank as part of the bank’s Pandemic Emergency Purchase Program (PEPP). Shell received this financial support on top of ongoing subsidies from Dutch, British and other governments, and continues to lobby these governments for favorable policies. Why do we keep supporting the corporations that are pushing us to the brink of climate collapse and what does it tell us about the power that these corporations hold?
Our guest for this episode is Dr. Rhodante Ahlers, a researcher in the area of social, ecological and technological interactions. She co-authored the report ‘Still Playing the Shell Game’ as part of the Future Beyond Shell project.
Show notes
Future Beyond Shell report ‘Still Playing the Shell Game’: https://futurebeyondshell.org/the-shell-game/
Two major benchmarks of oil prices: Brent oil prices: https://markets.businessinsider.com/commodities/oil-price?type=wti&op=1
Western Texas Intermediate oil prices: https://markets.businessinsider.com/commodities/oil-price?type=wti&op=1
Shell’s current market capitalization: https://companiesmarketcap.com/shell/marketcap/
Shell’s lobbying on the new Gazprom pipeline Nord Stream 2, which will go from Russia to Western Europe: https://gasnews.eu/all-news/shell-influenced-the-governments-stance-on-the-construction-of-nord-stream-2/
Original Dutch-language article: https://www.ftm.nl/artikelen/shell-invloed-kabinetsbeleid-russisch-gas
Dutch government paid ‘compensation’ to Shell and Exxon for closing the gasfields in Groningen, to the tune of 90 million euros (Dutch language): https://www.rtlnieuws.nl/nieuws/nederland/artikel/4844371/minister-wiebes-misgelopen-inkomsten-shell-exxon-90-miljoen
Corporate Europe Observatory on lobbying practices at the EU level : https://corporateeurope.org/en/lobbying-the-eu
Dutch advertising watchdog rules that Shell’s advertising falsely promotes its fuels as ‘carbon-neutral’: https://www.euractiv.com/section/all/news/shells-promotion-of-carbon-offsets-is-greenwashing-rules-dutch-watchdog/
Dutch government grants 2.4 billion in subsidies to Shell and Exxon for carbon capture and storage project: https://www.reuters.com/business/sustainable-business/dutch-govt-grants-24-bln-subsidies-huge-carbon-storage-project-2021-05-09/