'Tax people in this room' to help the poor, Shell CEO tells energy conference

LONDON — European governments should tax corporates to help weaker parts of society weather soaring energy costs but not intervene to cap gas prices, Shell CEO Ben van Beurden told an energy conference on Tuesday, according to a Reuters report.

Speaking before the Energy Intelligence Forum in London, Van Beurden said European energy prices and the huge volatility in the markets threatened broader social instability.

"You cannot have a market that behaves in such a way ... that is going to damage a significant part of society," van Beurden said.

"One way or another there needs to be government intervention that somehow results in protecting the poorest," he continued. "That probably may then mean that governments need to tax people in this room to pay for it."

A Shell spokesperson later said that van Beurden was referring to companies and not individuals.

His comments come as governments across Europe grapple with how best to finance protection for consumers amid runaway energy prices largely stemming from Russia's invasion of Ukraine.

EU countries last week approved emergency levies on energy firms' windfall profits. Britain in May introduced a windfall tax on oil and gas producers, but chose to borrow rather than impose further levies to fund about 100 billion pounds of subsidies announced in September.

"I think we just have to accept as a society it can be done smartly and not so smartly. There is a discussion to be had about it, but I think it's inevitable," van Beurden said.

Van Beurden's pay package reached $8.2 million in 2021 and could rise further in 2022 after Shell reported record profits in the second quarter of the year.

The veteran oil executive, who will step down at start of next year, said that European governments should not intervene in market exchanges in a bid to limit gas prices.

"Can we make a meaningful intervention in gas markets here in Europe? That is a much more challenging prospect," he said. "The solution should not be government intervention but protection of those who need protection."

Van Beurden also said he "struggled" to see how a price cap on Russian oil, which is being discussed among Western governments, would work.

Shell's latest news

Yesterday Sabah Shell Petroleum and its partners took a final investment decision on Phase 4 of the Gumusut-Kakap-Geronggong-Jagus East deepwater development.

Also in September, Shell and Exxon Mobil launched a simultaneous sale process of a large package of offshore natural gas assets in the southern UK and Dutch North Sea.

Recently, TechnipFMC was awarded an engineering, procurement, construction and installation contract by Shell Plc for the Jackdaw development in the UK North Sea.

10.04.2022