Shell Share Price
The Shell share price (LON:RDSA) is up by 8% over the past month, helped by the rising price of oil, amid a busy period for the FTSE 100 company. Despite some substantial swings along the way, the Shell share price is now 14.07% up since the beginning of the year.
Investors have been trying to figure out the company’s true value over recent months and they are getting snippets of information at a time. A couple of announcements have emerged over the last two days, which could give investors a better understanding of the oil giant’s trajectory. The news has seen the Shell share price rise for two consecutive days.
Shell to Quit Joint Venture with Exxon Mobil
Reuters reported on Thursday that Shell will depart from its oil and gas producing joint venture with Exxon Mobil Corp.
The move is a part of a wider divestment strategy of Shell’s carbon intensive assets across 2021. This includes the sale of a refinery in Washington state, as well as a stake in a Texas-based joint venture.
In addition, as reported recently by UK Investor Magazine, Shell has been mulling over its holding in the US’s largest oilfield after pledging to take robust action to reduce its emissions on the back of pressure from activist groups.
It is believed that Shell has notified Exxon of its plans to leave the venture.
The move follows a Dutch court ruling that Shell must reduce its worldwide carbon emissions by 45% by the end of 2030.
Shell to Partner with Rolls-Royce
Not only is Shell looking to divest away from fossil fuels, it is seeking to allocate resources to more future-proof energy sectors.
Rolls-Royce has said it is willing to partner Shell in developing a sustainable aviation fuel.
The two giants signed an agreement which will serve to ensure the development of 100% sustainable aviation fuel for use in planes.
Rolls-Royce CTOO Paul Stein said in a statement that both companies’ mission is to decarbonise flying.
“We believe that working together on these aims can deliver benefits for both the development of new innovations as well as collaborating to find ways to unlock the net carbon emissions reduction potential of technology that is already in use today,” he said.
The future of the Shell share price remains dependent on the company’s ability to move away from carbon emissions, in addition to finding innovative technologies to help solve the problem.
