The multinational corporation I chose for the project is Royal Dutch Shell. Shell is currently known for producing liquefied natural gas as its main product. “The company has secured its place as one of the main organizations in its selected market” (Royal Dutch Shell, 2018). This company has a comparative advantage over its rivals. Royal Dutch Shell has secured its role in the global market as the leading company producing oil and the related goods it will need to sustain its competitive advantage to keep its place and reinforce its role in the selected business setting. Shell’s target is to become a net zero emissions energy business by 2050. This is one of the comparative advantages of the Royal Dutch Shell. “Becoming net-zero emissions energy business means that they are reducing emissions from their operations and from the fuels and other energy products they sell to their customers. It also means capturing and storing and remaining emissions using technology or balancing them with offsets” (Our climate target, 2022).
“In the face of the COVID-19 pandemic, world oil production plunged to 91.3 Mb/d in 2020, a significant drop from 2019’s daily production level of 98.0 Mb/d. Production decreased in the OECD and elsewhere, but most precipitously in OPEC. While world demand for refined oil products rose modestly in 2019 compared with 2018, demand of other oil products recorded the largest growth in 2019, driven by increases in the People’s Republic of China, the United States and India. This increase was counteracted by a comparable decrease in demand for residual fuel oil as countries phased out its use in industry” (Supply and demand – Oil Information: Overview – Analysis - IEA, 2022).
Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange and secondary listings on Euronext Amsterdam and the New York Stock Exchange. Looking ahead, the IMF’s global economic outlook indicates some increase in global economic growth, which should support oil demand growth. Shell also provides a good investment opportunity for investors because crude oil prices will remain strong for the next year or two due to supply cuts. Shell has been divesting their assets to raise cash. Their investment in energy transition will serve them well over the long term.
Works Cited
Shell.com. 2022. Our climate target. [online] Available at: <https://www.shell.com/energy-and-innovation/the-energy-future/our-climate target.html#iframe=L3dlYmFwcHMvY2xpbWF0ZV9hbWJpdGlvbi8> [Accessed 4 July 2022].
IEA. 2022. Supply and demand – Oil Information: Overview – Analysis - IEA. [online] Available at: <https://www.iea.org/reports/oil-information-overview/supply-and-demand> [Accessed 4 July 2022].
Shell LPC is definitely a great choice to pick. Considering that the global markets are being impacted by inflation, supply chain delays, and the Russia-Ukraine war has cause considerate problems in economies around the world. Shell's stance to the Russia-Ukraine war is admirable. Shell announced that they will pull out of using Russian oil and by doing so it will cost them millions. Reuters article stated, "For Shell, the world's largest LNG trader, leaving the project deals a blow to its plans to supply gas to fast-growing markets in the coming decades. Shell said the Russia exit will not affect its plans to switch to low-carbon and renewables energy." (2022). The fact that they will continue to work towards low carbon and renewable energy is extremely important.
Reference:
Reuters. (2022). "Shell to exit Russia after Ukraine invasion, joining BP".
Retrieved from https://www.reuters.com/business/energy/shell-exit-russia-
operations-after-ukraine-invasion-2022-02-28/
I think that Shell is an interesting choice for a company to write on. I have found that part of their efforts reduce their carbon footprint is 50% by 2030, but their ultimate goal is to reduce their carbon intensity, the total amount of greenhouse gas emissions associate with each unit they sell, but 100% by the year 2050. They are going to achieve these numbers by selling twice as much electricity through supplying 2.5 million posts for electric cars, increasing biofuels in the transport fuels we sell to more than 10% from around 3% today.
References
https://www.shell.com/energy-and-innovation/the-energy-future/our-climate-target/_jcr_content/par/relatedtopics.stream/1650460792140/c5833d4644bd8acd6dfc6c5a70b5b42a483639a8/our-climate-target-v1-ax.pdf