Royal Dutch Shell (NYSE: RDS.B) is one of the world’s largest integrated energy companies. But the company in the future isn’t going to look like it has over the past, say, 100 years or so. That may be a good thing, but are the changes taking shape today enough to make it worth going along for the ride as Shell revamps its business?
It would be a massive understatement to suggest that 2020 was a hard year for energy companies. The coronavirus pandemic drastically reduced demand for oil and natural gas as economies around the world effectively shut down in an attempt to slow the spread of the virus. On top of that, the global supply of oil was high heading into the year thanks to years of growth in U.S. energy production. Lots of supply and little demand led to a steep decline in energy prices. It got so bad at one point that a key U.S. oil benchmark fell below zero.