Shell’s CEO appears to have suggested that the company would contemplate leaving the UK in order to make more money.
It comes after the UK government imposed ‘windfall taxes’ on energy companies after energy behemoths such as Shell and BP reported record profits during the cost-of-living crisis.
Wael Sawan also cautioned that if there is a double whammy of rising demand from China and a hard winter in Europe, energy costs and bills might skyrocket once more.
He also stated that rapidly transitioning from fossil fuels to renewable alternatives would be “dangerous and irresponsible.” According to Sawan, the globe “desperately needs oil and gas.”
Sawan takes aim at the UK government and the UN in an interview with the BBC’s Business Editor Simon. He appeared to imply that the British-based corporation would consider relocating its headquarters to the United States in order to raise its already massive revenues.
Shell produced one of the highest profits in UK corporate history last year, with a profit of £32 billion. However, Sawan stated that the UK lacked clarity and stability.
He claimed that this made the UK a less appealing destination to invest. It comes after the UK government imposed ‘windfall’ taxes on energy companies’ massive earnings.
Sawan also refused to rule out the possibility of Shell relocating its headquarters and stock exchange listing to the United States. Shares in American oil businesses are often more valuable than those in the United Kingdom.
Pointing out that Exxon Mobil is worth 40% more than Shell per dollar of profit, Sawan said: “There are many who question whether that valuation gap can only be bridged if we move to the US.”
However, he also said that: “A move of headquarters is not a priority for the next three years.” But he added: “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.”