first_img Show Comments ▼ whatsapp KCS-content whatsapp Thursday 28 October 2010 9:09 pm Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap WHAT a difference an oil spill makes. At the beginning of 2010, BP overtook Royal Dutch Shell in market capitalisation for the first time in three years. Ex-BP boss Tony Hayward had stolen a march on Peter Voser, who had just started at Shell, by cutting costs and scaling back investments in exploration and production (E&P). Shell was the laggard, BP was out in front.In the wake of the disastrous Deepwater Horizon oil spill, things couldn’t be more different. BP is worth £80bn, Shell is worth £125bn. As BP slims down to build a war chest that must pay for a decade of litigation, Voser’s decision to maintain healthy investment in E&P looks increasingly shrewd. Despite having a portfolio that is already packed with high-quality assets, especially in the Asia Pacific region, it also has one of the most ambitious investment programmes in the industry. The short-term view is also good. Third quarter results were ahead of market consensus, with “clean earnings” (which strip out various one-offs) up 88 per cent year-on-year to $4.9bn, against expectations of $4.3bn. Of course, any medium-term bet on an oil company is really a play on the global economy. But the world will always need oil, and Shell’s decision to invest while others prune will serve it well. It’s the tortoise that wins the race. Shell Share Tags: NULLlast_img

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