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Shell (RDS.A) to Mandate COVID-19 Vaccines for Offshore Workers

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Royal Dutch Shell plc (RDS.A - Free Report) is planning to mandate COVID-19 vaccinations for employees in specific locations.

The decision to mandate vaccines was made as the White House campaign urged major U.S. employers to get their workers vaccinated in an attempt to prevent the resurgence of the pandemic.

Per an internal memorandum, Shell will follow the ongoing policy of strong advocacy for vaccination but there will be no compulsion. However, the company is considering imposing a vaccine mandate for specific operations. These would include offshore operations, mainly in the Gulf of Mexico, which the company has been actively exploring. If refused, employees could face termination.

Shell's trading division already imposed a vaccine mandate as it is impossible to maintain social distancing on a trading floor. The company, which is the most prolific operator in the Gulf of Mexico, requires workers and contractors to undergo medical screening and a negative test within 48 hours of departure.

Offshore outbreaks continuously disrupted production and put lives at risk. Due to its enclosed nature, it is difficult to keep a safe space between people. Evacuations continue to prove costly, disruptive and hazardous to helicopter pilots. Hence, the notion of vaccine mandates is being embraced all over the world.

Oil companies Chevron Corporation (CVX - Free Report) and Pioneer Natural Resources Company (PXD - Free Report) recently announced that they require new hires and certain fields to get vaccinated against the virus. Refiner Valero Energy Corporation (VLO - Free Report) also imposed a blanket vaccine requirement as a recruitment condition for new workers at its Louisiana and Texas facilities.

Overall, it seems that a growing number of energy operators are requiring workers to get the vaccination as the outbreak has proved particularly prolific in the south of the United States, where most oil operations take place.

Company Profile & Price Performance

Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.

Shares of the company have outperformed the industry in the past three months. The stock has declined 2.7% compared with the industry’s 7.1% fall.

 

Zacks Investment Research
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Zacks Rank

Shell currently sports a Zack Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.