Shell faces a long period of lower returns if it wants to secure its future in alternative energy sources. This is what stock market analyst Jos Versteeg from InsingerGilissen says in BNR Beursweek. This requires investments in new technology, because the current alternatives are not yet very profitable and Shell CEO Wael Sawan announced at the presentation of the quarterly figures that the sustainable projects will be shelved. Versteeg: ‘I understand that they want to stop doing that, but it is a shame.’
Shell puts green ambitions on hold: ‘Like lemmings to the abyss’
2 min 47 sec
For the time being, Sawan prefers to focus on gas, as a relatively clean alternative to oil. That in itself shows consistent policy, says Versteeg. Shell has been aiming for the disappearance of oil for a long time, and gas is currently the most obvious ‘green’ alternative, says Versteeg. ‘That has much less CO2 emissions. Sustainable alternatives such as wind turbines and solar cells are not yet really profitable.’ It shows the dilemma for Shell. ‘If your future lies in alternative energy, I think it is weak that they only focus on gas.’
Also read | Shell rewards shareholders despite halved profits
The shareholders seem quite divided: one wants more dividends, the other wants a greener company in the first place. Especially for the environmental guys Things look bleak within the company, and the possibility of satisfying all shareholders seems impossible. ‘Let me be very clear: I think it’s terrible that we are warming the planet significantly, but I don’t see how we are going to stop this.’
‘I think it’s weak that they only focus on gas’
Versteeg has low expectations of politics in that regard. As long as the reduction in the petrol tax comes at the expense of the R&D budget and the companies themselves are too reluctant to limit their profitability, there is little prospect of a revolution. ‘I don’t see it happening, I see the earth warming up much further in that regard. You could say that we are all walking like lemmings towards the abyss.’
Also read | Half of ‘sustainable’ investment funds invest in fossil fuels
