Shell Plc

The Royal Dutch Shell Group was created from the merger of two rival companies driven by the need to compete with Standard Oil. Royal Dutch Petroleum Company, founded in 1890, initially focused on oilfields in Pangkalan Brandan, North Sumatra. The “Shell” Transport and Trading Company, founded in 1897 by Marcus Samuel, originated from an antique company importing seashells, which inspired the company’s name. The merger terms gave 60 percent stock ownership to Royal Dutch, with both companies maintaining separate legal existences but operating as a single unit.

During World War I, Shell was a primary fuel supplier to the British Expeditionary Force, providing 80 percent of the British Army’s TNT. In 1929, Shell entered the chemicals industry. From the mid-1940s to the mid-1970s, 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 Billiton, later selling it in 1994.

During the Spanish Civil War, Shell sold oil to the Nationalist side led by Francisco Franco. In 1931, Shell Mex House was completed in London, serving as the head office for Shell’s global marketing activity. In 1932, Shell-Mex merged its UK marketing operations with BP to form Shell-Mex & BP, lasting until 1975. In 1952, the Iraq Petroleum Company, 23.75 percent owned by Royal Dutch Shell, provided financial support for an armed force to occupy the interior region of Oman, leading to the 1954 Jebel Akhdar War.

In 1989, Shell redesigned a North Sea gas platform, raising its height to accommodate anticipated sea level rise. In the 1990s, protests arose over the proposed disposal of the Brent Spar platform into the North Sea, leading Shell to reverse its decision.

In 2002, Shell acquired Pennzoil-Quaker State for $1.8 billion, adding brands like Jiffy Lube, Rain-X, and Fix-a-Flat to its portfolio. In 2004, Shell overstated its oil reserves, resulting in a fine and the departure of Chairman Philip Watts, and later a settlement with non-American shareholders in 2007. This led to a simplification of the corporate structure.

In 2005, the company unified its structure, creating Royal Dutch Shell plc with primary listing on the London Stock Exchange. In 2010, Shell and Cosan formed Raízen, a Brazilian ethanol and energy joint venture. In 2016, Shell acquired BG Group, becoming the world’s second-largest non-state oil company. In 2020, Shell announced plans to cut its dividend due to the oil price collapse during the COVID-19 pandemic.

Shell operates across the oil and gas industry, including exploration, production, refining, transport, distribution, and marketing. It is organized into four business groupings: Upstream, Integrated Gas and New Energies, Downstream, and Projects and Technology. Shell has operations in over 99 countries, producing around 3.7 million barrels of oil equivalent per day and operating approximately 44,000 service stations worldwide. As of 31 December 2019, Shell had total proved reserves of 11.1 billion barrels (1.76×109 m3) of oil equivalent.

Shell has invested in alternative energy sources, including solar, wind, hydrogen, and forestry. It holds a 44% stake in Raízen, a major Brazilian ethanol producer. In 2017, Shell acquired Europe's largest vehicle charging network, NewMotion, and announced plans to supply sustainable aviation fuel. In 2022, Shell acquired Nature Energy Biogas A/S.

Shell has faced criticism regarding its environmental impact, including accusations of greenwashing and responsibility for oil spills in Nigeria. A Dutch court initially ruled in 2021 that Shell must reduce carbon dioxide emissions, but this ruling was overturned on appeal in 2024. Shell has also faced scrutiny for its response to the Russian invasion of Ukraine, initially facing criticism before announcing its intention to phase out Russian hydrocarbon production.

Institutional investors hold a significant portion of Shell plc shares. Vanguard owns 3.218%, Norges Bank owns 3.213%, and BlackRock Investment Management UK owns 2.664% as of the end of 2024.