But there are concerns that a growing focus on environmental, social and governance (ESG) measures among institutional investors is beginning to threaten that status, with some companies starting to defect to the US, the world’s largest oil producer.
Ashley Kelty, head of oil and gas research at Panmure Gordon, said Mr Sawan’s comments reflected a negative perception of oil and gas in Europe, where Shell has faced criticism from climate activists and some of its own shareholders for not investing more in renewable power.
The oil giant is also under pressure to close a valuation gap with US rivals such as Exxon Mobil and Chevron.
Mr Kelty said: “In New York, they [Shell] won’t come under the same amount of pressure around the environment and greenwashing – they will be allowed to get on with what they do.
“If they do go, it would suggest they want to row back on the renewable side even farther than they’ve admitted previously because [in Europe] they will get penalised.
“Americans are far more positive towards oil and gas than Europeans. They don’t see it as being the great evil that is perceived to be here, and the tax regime is more supportive.”
He added that the comments from Shell’s chief executive should also be seen as a “warning shot” to the UK government and Sir Keir Starmer’s Labour opposition, amid concerns about anti-business policies.
Labour has vowed not to raise corporation tax above the current 25pc level but has separately suggested it will introduce a “proper” windfall tax on oil and gas companies that is tougher than the Government’s existing energy profits levy. Sir Keir has also vowed to introduce a package of “day one” employee rights that have raised concerns among some businesses.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
