The boss of Shell has said that the energy giant could shift to a New York listing and the more supportive environment of the US.
Wael Sawan said while the UK-based company has no plans to move its headquarters and listing to the US in the next three years, he has not ruled out the possibility.
In an interview with the BBC, he said the UK lacks stability on energy policy and taxation.
"When you do not have the stability you require in these long-term investments, that raises questions when we compare that to other countries where there is very clear support for those investments," he said.
He spoke about the “valuation gap” between Shell and American oil companies such as Exxon Mobil, which is worth 40 per cent more per dollar of profit.
"There are many who question whether that valuation gap can only be bridged if we move to the US. A move of headquarters is not a priority for the next three years."
"But after that? I would never rule out anything that could potentially create the right circumstances for the company and its shareholders. Ultimately, I am in the service of shareholder value," he said.
The company reported a record profit of $40 billion in 2022 as it benefited from higher energy prices caused by Russia's invasion of Ukraine last year.
In May the company reported a better-than-expected first-quarter profit based on strong performance in its fuel trading business, despite lower energy prices.
Shell's quarterly adjusted net profit increased about 6 per cent to $9.65 billion, from $9.13 billion a year earlier, exceeding the company’s own earnings forecast of $8 billion.
But in November, Shell said it was reviewing plans to invest £25 billion ($31.76 billion) in British projects after the UK government extended a windfall tax on energy companies.
The company said it would look at each of its projects on a “case-by-case basis” after Chancellor Jeremy Hunt raised the levy on oil and gas profits from 25 per cent to 35 per cent in his autumn statement.
Mr Sawan said Shell received a “warm welcome” from the New York Stock Exchange during a recent investors’ meeting.
"The welcome we had there was exemplary. The Shell flag was waving next to the New York Stock Exchange flag," he said.
And he suggested the US was more supportive of oil and gas companies.
"They said we continue to value a company that provides us the energy we desperately need. That resonated with me as a person who comes from Lebanon, where we are starved of energy,” he added.
Mr Sawan also warned that cutting oil and gas production would be “dangerous and irresponsible” because the renewable energy sector is not developing fast enough to replace it.
He dismissed a suggestion from the head of the UN, Antonio Gutteres, that investment in new oil and gas production would be “economic and moral madness”.
"What would be dangerous and irresponsible is cutting oil and gas production so that the cost of living, as we saw last year, starts to shoot up again,” he said.
Opposition leader Keir Starmer recently pledged to not rip up existing oil and gas licences as he unveiled a plan to make the UK a “clean energy super power” by 2030.
A Labour government will not grant any new oil and gas licences, he said. But it will honour all existing ones.
“Oil and gas will be part of the mix for decades to come under existing licences or licences that are granted in the near future,” he said.
“We are not going to interfere with existing licences. And that includes licences that are granted before we come into power.
“It is very important for investors who are going to invest in the UK to know that there is continuity if there is a change in government," Mr Starmer said.
“What we will do in the future is one thing. But how we will ensure continuity is another.”
Under Prime Minister Rishi Sunak the government has signalled support for new North Sea oil and gas exploration.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Company%20Profile
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Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
UAE currency: the story behind the money in your pockets
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
The biogs
Name: Zinah Madi
Occupation: Co-founder of Dots and links
Nationality: Syrian
Family: Married, Mother of Tala, 18, Sharif, 14, Kareem, 2
Favourite Quote: “There is only one way to succeed in anything, and that is to give it everything.”
Name: Razan Nabulsi
Occupation: Co-founder of Dots and Links
Nationality: Jordanian
Family: Married, Mother of Yahya, 3.5
Favourite Quote: A Chinese proverb that says: “Be not afraid of moving slowly, be afraid only of standing still.”
The specs
Engine: 3.0-litre 6-cyl turbo
Power: 435hp at 5,900rpm
Torque: 520Nm at 1,800-5,500rpm
Transmission: 9-speed auto
Price: from Dh498,542
On sale: now
All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
HERO%20CUP%20TEAMS
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WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
Kandahar%20
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Five healthy carbs and how to eat them
Brown rice: consume an amount that fits in the palm of your hand
Non-starchy vegetables, such as broccoli: consume raw or at low temperatures, and don’t reheat
Oatmeal: look out for pure whole oat grains or kernels, which are locally grown and packaged; avoid those that have travelled from afar
Fruit: a medium bowl a day and no more, and never fruit juices
Lentils and lentil pasta: soak these well and cook them at a low temperature; refrain from eating highly processed pasta variants
Courtesy Roma Megchiani, functional nutritionist at Dubai’s 77 Veggie Boutique
WORLD CUP SQUAD
Dimuth Karunaratne (Captain), Angelo Mathews, Avishka Fernando, Lahiru Thirimanne, Kusal Mendis (wk), Kusal Perera (wk), Dhananjaya de Silva, Thisara Perera, Isuru Udana, Jeffrey Vandersay, Jeevan Mendis, Milinda Siriwardana, Lasith Malinga, Suranga Lakmal, Nuwan Pradeep
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Bawaal%20
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GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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UAE currency: the story behind the money in your pockets
