Shell (motorsport)

The origins of Shell lie in two separate companies. Royal Dutch Petroleum Company was founded in 1890 to develop an oilfield in Pangkalan Brandan, North Sumatra. The “Shell” Transport and Trading Company, founded in 1897, initially traded in seashells before expanding into oil transport. The merger was arranged by Calouste Gulbenkian, a British-Armenian oil magnate, who became a major shareholder in the newly formed company.

In the early 20th century, Shell became a dominant force in the global petroleum industry. By 1920, Shell was the largest producer of oil in the world. In 1929, Shell entered the chemicals industry, diversifying its operations beyond oil extraction and refining. During the First World War, Shell was a key supplier of fuel to the British Expeditionary Force.

Throughout the mid-20th century, Shell was one of the “Seven Sisters” which dominated the global petroleum industry. In 1964, Shell participated in the world’s first commercial sea transportation of liquefied natural gas (LNG). In 1970, Shell acquired the mining company Billiton, which was later sold in 1994.

The 1989 redesign of a North Sea gas platform, raising its height to account for anticipated sea level rise, demonstrated Shell’s early awareness of climate change. However, the company faced criticism in the 1990s over the proposed disposal of the Brent Spar platform into the North Sea, reversing its decision under public pressure. In 1952, the Iraq Petroleum Company (IPC), in which Shell held a 23.75% stake, offered financial support to raise an armed force to assist the Sultan of Muscat in occupying the interior region of Oman, an area believed to be rich in oil. In 2002, Shell overstated its oil reserves, leading to a loss of confidence, a £17 million fine, and the departure of its chairman Philip Watts.

In 2021, Shell announced plans to relocate its headquarters to London, abandon its dual share structure, and change its name to Shell plc, completing the transition in January 2022.

Shell is vertically integrated, involved in all aspects of the oil and gas industry, from exploration and production to refining, transport, and retail. As of December 31, 2019, Shell had total proved reserves of 11.1 billion barrels of oil equivalent. The company operates in over 99 countries and has around 44,000 service stations worldwide. Shell also owns the Jiffy Lube, Pennzoil, and Quaker State brands.

Shell has faced criticism regarding its environmental impact, including oil spills in Nigeria and concerns about carbon emissions. The company has been involved in several high-profile controversies, including a Dutch court ruling in May 2021 that Shell must reduce carbon dioxide emissions by 45% by 2030, which was later overturned on appeal in November 2024.

The key trends of Shell are (as at the financial year ending December 31):

Revenue: $284 billion (2024)

Market capitalization: $199 billion (September 15, 2022)

Total proved reserves: 11.1 billion barrels of oil equivalent (December 31, 2019)

Service stations: approximately 44,000 worldwide

Ben van Beurden has been CEO of Shell since January 3, 2014.

Wael Sawan succeeded Ben van Beurden as CEO in January 2023.

Shell is organised into four major business groupings:

Upstream – manages the upstream business.

Integrated Gas and New Energies – manages to liquefy natural gas, converting gas to liquids and low-carbon opportunities.

Downstream – manages Shell's manufacturing, distribution, and marketing activities for oil products and chemicals.

Projects and technology – manages the delivery of Shell's major projects, provides technical services and technology capability covering both upstream and downstream activities.

Shell has operations in over 99 countries, with significant activities in various regions, including:

Arctic

Australia

Brunei

China

Nigeria

North America

Philippines

Russia

Singapore

South Africa

Sri Lanka

United Kingdom

In the early 2000s, Shell moved into alternative energy and invested in solar power, wind power, hydrogen, and forestry. The company has made significant investments in renewable energy sources, including:

Solar power

Wind power

Hydrogen

Biofuels

Shell has also partnered with other companies to develop new energy technologies, including:

Raízen, a Brazilian energy company

NewMotion, a European vehicle charging network

Shell has been involved in several high-profile litigations, including:

A Dutch court ruling in May 2021 that Shell must reduce carbon dioxide emissions by 45% by 2030

A lawsuit related to oil spills in Nigeria

Accusations of greenwashing

Shell has faced criticism regarding its health and safety record, including repeated warnings by the UK Health and Safety Executive about the poor state of the company's North Sea platforms.

Shell exited its joint ventures with Gazprom following the Russian invasion of Ukraine and announced that it would stop buying Russian oil and close its service stations there.

Shell plc official website

Business data for Royal Dutch Shell plc