On Friday, Royal Dutch Shell went against most of its industry peers and international goodwill to get a record discount on Russian oil during the ongoing invasion of Ukraine. But the company still wants you to think it is well done, they promise to direct the profits to humanitarian aid to Ukraine.
Oil prices are going crazy around the world right now partly due to conflict: Tbarrel price at one point in time Monday hit $139, the highest price in ten years.. But the industry as a whole is shunning the export of Russian oil, an important source of income for the country, as the world looks into sanctions. Several major oil companies last weekincluding BP, Exxon, and Shell have announced they are pulling out of many longstanding and profitable businesses in the region due to to Putin’s actions.
It all goes to show that the oil that Shell dug up was super-duper cheap, thanks to most of the players. Existence reluctance to touch it. Last week, Shell bought 100,000 tons of crude oil, or about 725,000 barrels, of Russia’s flagship oil about $28.50 below the global benchmark price. It is reported by the Wall Street Journal.. This is one of the coolest discounts for oil in history.
Financial Times informed Friday that Shell should have made a cool $20 million selling off that oil. Traders told the FT they expected a lesser-known Chinese or Indian company to buy the disputed oil. “I’m amazed that Shell has lifted this load,” one trader told the FT.
People were, of course, UNhappy that one of the largest oil and gas companies in the world will go so that a tanker with Russian oil would quickly profit during this human rights crisis.
“I was told that Shell secretly bought Russian oil yesterday,” Ukrainian Foreign Minister Dmytro Kuleba said. wrote on Saturday. “One question for @Shell: does Russian oil smell like [of] Ukrainian blood for you? I call on all conscientious people around the world to demand that multinational companies cut off all business ties with Russia.”
Feeling that this might have been a bad publicity stunt, Shell suffered a loss.weekend control mode. Late Saturday company released statesment about the purchase, which he called “a difficult decision.” The statement says that Shell is “shaken by the war in Ukraine” but will continue to buy Russian oil because the switch to alternatives “cannot happen overnight.” The company has promised that it will channel oil profits into a “special fund” that it will use for humanitarian aid to Ukraine. Yes guys it is fully makes it better.
The Earthling was, uh… out of service last weekbut the invasion Ukraine has changed dramatically talk of oil and gas, especially US fossil fuel prices, which were high even before the invasion and are formed by a whole host of factors, including industry control and investor pressure, are skyrocketing in the US and across Europe. USA and its allies have carefully avoided imposing any sanctions on Russian oil, although Secretary of State Anthony Blinken said Sunday that they I’m looking into this option..
Meanwhile, the US oil and gas industry joyfully seized in this crisis to push through long overdue issues such as increasing the lease of oil and gas lands and water areas of federal significance (despite the fact that the industry sits on an overwhelming unused leases). Mike Sommers last week The CEO of the American Petroleum Institute, the most powerful lobbying body in the industry, wrote an article for Fortune magazine in which he put patriotism on thick as he called for fewer restrictions on American lIliquefied natural gas export. “No wonder Vladimir Putin is using energy as a weapon, but like during World War II and other crises, America is covering for Europe,” Sommers wrote.
FROMThe hellish purchase of Russian oil serves as a reminder that the industry will not sink to such a low in the pursuit of profit. Don’t fall for the humanitarian rhetoric of this heinous move.