Oil’s Rebound Greases the Way for Energy Giants’ Green Pitch

Oil’s Rebound Greases the Way for Energy Giants’ Green Pitch

Investors returning to Royal Dutch Shell and BP are likely more interested in higher oil prices than green transition plans. Still, the energy giants have a much-needed opportunity to pitch their decarbonization strategies from a position of strength.

On Thursday, Shell said it made $8.3 billion in cash flow from operations in the first quarter, up by 32% over the previous quarter. Earlier in the week, BP said its own tally was $6.1 billion, more than double the prior period. These were strong results after a dreadful year.

The improvements were fueled primarily by higher commodity prices. Production discipline among the cartel of oil-producing countries and their partners has kept crude prices strong this year, despite the mixed demand picture, as some major markets reopen, while others contend with resurgent Covid-19 infection rates. Higher oil and gas prices also helped both companies accelerate their massive divestment programs.