Once upon a time, I was at a university, and a high-ranking fancy person from Shell Oil showed up. It was a university in Texas, maybe that was why.
He was from the top brass, I think — he was actually Dutch, all smooth and tall and polished. But if you listened carefully to what he was saying, he was actually skipping around all over the place and not saying anything of substance. He was involved in this oil company’s “sustainability” efforts.
This is what he said:
He said that they have to think about the power of the customer, for example, if the customers say they want more sustainable plastic wrapping.
And that a just energy transition is an intensely political thing (good thing he wasn’t vague at all).
Then someone asked, “How does Shell account for social impacts,” and his on-the-point answer was: “Ten years ago, I was head of strategy for Shell. The drivers were social, economic, and political. We take all this into account. And we’ve always been conscious of that.”
Then, when explaining how they take human rights into account, he said “we have to comply with vetoes from local laws”, and they’re very innocent because they’ve been doing this for many decades, but they don’t always get credit for it. Especially with the increasing outside scrutiny.
Another person got up and fawned: You have several compelling points in your sustainability report. Where will it be in 40 years? He said, well, I don’t want to go into that, let me instead go back to what I was saying. I was talking about scenarios. Not plans, not forecasts, just scenarios.
Then he said it’s very multi-dimensional and beautiful, and if you don’t like it …
Someone asked about carbon footprints. He said they are a leader in natural gas, and are thinking about biofuels, and that hydrogen will be key, and natural sinks. Oh, natural sinks! I didn’t know at the time how they would play a role in my future! Now my past again. Then he mentioned renewables, he mentioned one tiny line on that. That they are investing small amounts smaller amounts in renewables, which gives them the right to claim they are “drivers” in that industry.
He said that Shell’s stance is that they will be recognized as leading the charge in the energy transition and keeping the Paris Agreement. They are worth $40 billion and are a VERY well-respected company.
Someone asked: Shell has an extremely well-diversified portfolio, not just with gas or oil, but all across energy. And he said, well, we have great lawyers. Hahahaha (his laughter).
Then, about being responsible, he said we have to be humble and modest and say there’s only so much we can do.
That’s what I’m going to say next time someone accuses me of something.
Finally: I appreciate all the thoughtful questions and I thought it was great.
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