Gas processing plant
Shell has made a concerted effort to shift the bulk of its business from oil-related projects to natural gas, LNG and renewables. Coming on the heels of its February purchase of BG Group (a $54 billion acquisition), Shell has organized a division focused solely on renewable energy.
It announced new investment for its LNG facility on Curtis Island in Australia, where natural gas has enjoyed $180 billion in new capital. It has emerged as a stronger voice on global climate change than its competitor ExxonMobil and the company’s website proposes a number of “Shell Scenarios” that could allow for a growing energy market while creating less CO2.
This move towards gas and renewables, combined with Shell’s traditional ability to innovate during major market shifts and navigate changes in energy infrastructure, has benefitted the company’s position relative to its competition. Barron’s declared Shell the “world’s best big oil stock,” citing its move away from high-cost production projects, including the abortive move on drilling newly-opened Arctic deep-sea areas, which Shell nixed in 2015.
Shell’s diverse revenue stream, relative to a competitor like ConocoPhillips, allows it to correct for imbalances in one sector while taking advantages of innovations in another
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