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Shell needs to be dismantled. Here’s how [1]

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Date: 2024-06 

It has been a turbulent year for the oil and gas giant Shell.

Last May, Dutch courts ruled that Shell must drastically reduce its carbon emissions. In October, ABP, a major shareholder, divested from the company. The following month, the firm announced plans to move its headquarters from the Hague to London and drop its iconic prefix, ‘Royal Dutch’ (the company is now just Shell plc). And, in recent weeks, it has come under fire for its mammoth 14-fold increase in quarterly profits, having made $16.3bn (£12bn) pre-tax profit in the last quarter of 2021, while gas prices surged across Europe.

Now, as Shell presents itself as a global leader in the green energy transition, it is still actively investing in new oil and gas drilling.

But that is not the company’s only problem.

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For a start, Shell’s profit-maximising business model is deeply undemocratic, benefitting top management and shareholders at the expense of communities around the world. The firm has also not reckoned with its colonial past and severe human rights violations, while its privileged access and influence over political decision-making processes are an obstacle towards building a democratic and green energy system. And, finally, its investment in ‘innovation’ is primarily dependent on gas and carbon capture, which keeps the world locked into a fossil fuel future.

While many agree that ending fossil fuel extraction is necessary, questions remain over how to dismantle oil and gas giants such as Shell. These companies will certainly not stop polluting of their own volition – so governments and civil society must take strategic action to force them to do so.

Can this be done via carbon pricing, bankruptcy, strategic litigation or nationalisation? When assessing these mechanisms, it’s critical to consider how – and if – they would reckon with the corporation’s colonial legacy and safeguard labour rights to build a fairer and regenerative energy system.

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[1] Url: https://www.opendemocracy.net/en/oureconomy/shell-needs-to-be-dismantled-heres-how/

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