Shell CEO Tips his Hat to the Biden Administration

Here is a link to an article reporting on comments made by Wael Sawan, CEO of oil major Shell plc. He stated that Biden’s bipartisan infrastructure law and Inflation Reduction Act “seem to be working in terms of attracting a significant amount of capital in different states, whether it’s a red or blue state,” at a meeting of the centrist Center for Strategic and International Studies.

It wasn’t all sweetness and light. He was critical of the Biden administration for its decision to pause new LNG export permits pending a thorough review of climate impacts. Sawan explained his view-

“I think sometimes the disagreement stems from the fact that it is a fossil fuel, therefore it cannot be clean. There is an almost absolutist perspective on this that some have” in parts of Washington and some European capitals, he said. “While I respect that view, the reality is it is an energy transition. And we need to be able to transition to lower-carbon solutions.”

I have to agree with his comment. Given the colossal size of the global oil & gas (O&G) industry and the extensive reach of our reliance on petroleum fuels and chemical products like plastics, there must be a transition shallow enough to evolve into renewables without crashing the global economy and the political upset that will come from that. The path to renewables has to start sometime, but maybe there should be some negotiation on the LNG export permits, if there already hasn’t been any. Sawan’s comments on this were valuable.

The matter of climate change is pressing and the motivation to change rapidly is irresistible to many. But it took many decades to get into this mess and it looks like it will take some time to ameliorate it. In the meantime, we the public can alter our consumption and driving habits en masse and make real change faster than government policy.