“You can be sure of Shell”, said a famous 1937 advertisement.
But in recent years, the oil firm has been clouded in uncertainty. Now, chief executive Wael Sawan has said he is open to moving the company’s primary listing to New York – bad news for Britain, Europe and compatriot BP.
The European oil supermajors have struggled for years under a serious discount to their American rivals, notably Chevron, ExxonMobil and ConocoPhillips.
The three US corporations trade at an average multiple to free cash flow of about 16, compared to just 7.5 of the four big Europeans – Shell, BP, TotalEnergies and Eni. Given this underperformance, it’s not surprising that Mr Sawan has looked at all angles to raise Shell’s valuation.
Shell has already moved once in recent years. In 2022, it undid 115 years of history by cancelling its dual listing in the Netherlands, dropping the “Royal Dutch” part of its name, and shifting its headquarters to London. Previous chief executive Ben van Beurden confirmed the company looked at a primary US listing in 2021.
The undervaluation of the European oil companies stems from three causes. First, the general US market has strongly outperformed London’s FTSE, especially since 2016’s Brexit vote and the 2020 Covid-19 pandemic.
Second, investors have been deterred by a confused strategy from the European firms. They continue to be major oil and gas producers, but they may seek slowly to reduce output.
BP plans to see its production drop 10 per cent to 15 per cent by 2030, according to chief executive Murray Auchincloss.
However, this is still not considered to be in line with the Paris Agreement of 2015. Climate-focused investors and lenders will not finance oil and gas companies or projects in any case, no matter what green plans they have.
The European supermajors have yet to show they can make a financial success of low-carbon ventures in areas such as offshore wind power and electric vehicle charging.
Areas where they should have a competitive advantage, such as carbon capture and storage, sustainable aviation fuels, and advanced geothermal and hydrogen, suffer from inadequate, indecisive and unclear government policy across Europe.
Third, European companies face growing hostility from their host governments and legal systems.
In 2021, a Dutch court ordered Shell to cut its absolute greenhouse gas emissions – including those from fuels sold to customers – by 45 per cent by 2030. On Tuesday, a group of Swiss climate campaigners won their case arguing that the government had breached their human rights by failing to tackle climate change adequately.
And Britain’s opposition Labour Party, forecast to win power at a probable election this year, has said it will introduce a “proper windfall tax” on oil and gas production in the country, even though petroleum prices are not at windfall levels.
These issues impose severe restrictions on the European companies’ ability to capitalise on their legacy businesses. They are hampered in their ability to grow. BP has said, for example, that it will not enter new countries – ruling itself out of hotspots such as Guyana and Namibia.
They are absent from US shale entirely, or, as in the case of BP, have a subscale presence there. BPX, BP’s onshore US arm, last year produced less than half as much as Pioneer, the US’s tenth-largest producer.
Shale and the deepwater fields of Guyana will be the two crucial motors of growth this decade for both ExxonMobil and Chevron – assuming its deal to buy rival Hess closes.
Their lower valuation means the Europeans cannot use shares as currency for acquisitions, as ExxonMobil did when it bought Pioneer for $64.5 billion in October, or Chevron in its $53 billion acquisition of Hess the same month.
Conversely, they can become takeover targets. There have been rumours about international interest in BP, while a Shell takeover of its smaller British rival seems an obvious deal but does not answer the bigger question.
The French authorities would certainly block any approach to acquire TotalEnergies.
The British government might warn off any foreign purchaser of Shell or BP. But how could it do that while posing straight-facedly as a climate leader?
The European oil companies retain great strengths: their legacy assets, skilled people and worldwide relationships. Of non-state companies, Shell and TotalEnergies lead the global liquefied natural gas business. Shell and BP have extremely profitable trading units, a strategy ExxonMobil has failed to emulate.
It would be a calamitous own-goal for European governments to kill off their oil companies or force them to leave. This will do nothing to reduce emissions. The assets will either move to the US or another more oil-friendly jurisdiction, be bought up by international rivals such as Chinese or Gulf companies, or pass into private hands, less scrutinised over climate.
In the sphere of coal, a dirtier fossil fuel, Czech billionaire Daniel Křetínský has built an empire by picking up unloved assets from others. Private investors like him, as well as traditional private equity groups, will undoubtedly do the same as listed oil companies are compelled to downsize.
The Russia-induced energy crisis of 2022 shows the enduring importance of assets and expertise. Europe is finding it hard to compete against China in the cleantech manufacturing space, and against US companies supercharged by generous tax incentives.
Destroying or driving away some of Europe’s longest-established, largest and most successful companies will not help build competitiveness, however unfashionable their business.
The elusive answer lies in a clearer bargain between the state and companies. European governments should clearly lay out their vision for their hydrocarbon companies in a net-zero world.
The oil companies then need to put their money where their mouth is, deliver on the low-carbon energies that they are best suited to, and leave the rest for other specialists.
Robin M. Mills is chief executive of Qamar Energy, and author of The Myth of the Oil Crisis
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EMaly%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Mo%20Ibrahim%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%20International%20Financial%20Centre%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20%241.6%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2015%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%2C%20planning%20first%20seed%20round%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20GCC-based%20angel%20investors%3C%2Fp%3E%0A
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Results:
CSIL 2-star 145cm One Round with Jump-Off
1. Alice Debany Clero (USA) on Amareusa S 38.83 seconds
2. Anikka Sande (NOR) For Cash 2 39.09
3. Georgia Tame (GBR) Cash Up 39.42
4. Nadia Taryam (UAE) Askaria 3 39.63
5. Miriam Schneider (GER) Fidelius G 47.74
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Founder: Ayman Badawi
Date started: Test product September 2016, paid launch January 2017
Based: Dubai, UAE
Sector: Software
Size: Seven employees
Funding: $170,000 in angel investment
Funders: friends
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
Dengue%20fever%20symptoms
%3Cul%3E%0A%3Cli%3EHigh%20fever%3C%2Fli%3E%0A%3Cli%3EIntense%20pain%20behind%20your%20eyes%3C%2Fli%3E%0A%3Cli%3ESevere%20headache%3C%2Fli%3E%0A%3Cli%3EMuscle%20and%20joint%20pains%3C%2Fli%3E%0A%3Cli%3ENausea%3C%2Fli%3E%0A%3Cli%3EVomiting%3C%2Fli%3E%0A%3Cli%3ESwollen%20glands%3C%2Fli%3E%0A%3Cli%3ERash%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3EIf%20symptoms%20occur%2C%20they%20usually%20last%20for%20two-seven%20days%3C%2Fp%3E%0A
Read more about the coronavirus
Top 5 concerns globally:
1. Unemployment
2. Spread of infectious diseases
3. Fiscal crises
4. Cyber attacks
5. Profound social instability
Top 5 concerns in the Mena region
1. Energy price shock
2. Fiscal crises
3. Spread of infectious diseases
4. Unmanageable inflation
5. Cyber attacks
Source: World Economic Foundation
Bridgerton%20season%20three%20-%20part%20one
%3Cp%3E%3Cstrong%3EDirectors%3A%20%3C%2Fstrong%3EVarious%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nicola%20Coughlan%2C%20Luke%20Newton%2C%20Jonathan%20Bailey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
KILLING OF QASSEM SULEIMANI
The specs: 2018 Mitsubishi Eclipse Cross
Price, base / as tested: Dh101,140 / Dh113,800
Engine: Turbocharged 1.5-litre four-cylinder
Power: 148hp @ 5,500rpm
Torque: 250Nm @ 2,000rpm
Transmission: Eight-speed CVT
Fuel consumption, combined: 7.0L / 100km
