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Shell's (SHEL) Appeal Against Climate Ruling to Begin in April
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Shell plc’s (SHEL - Free Report) appeal against a climate ruling, which mandated the oil and gas giant to reduce its carbon emissions by 45% over the next decade, is scheduled to begin in April, per a Bloomberg report.
The appeal aims to reverse the 2021 verdict delivered by a Dutch court, ordering Shell to slash emissions equivalent to 740 million tons of carbon dioxide annually by 2030, based on the 2019 level. Notably, the ruling was not suspended, awaiting the outcome of the appeal, and did not specify how Shell should achieve the mandated emission cut.
In the impending legal dispute, Shell will confront the Dutch branch of Friends of the Earth, an environmental organization, in a four-day showdown scheduled between Apr 2 and Apr 12. Shell argues that the court's ruling unfairly targeted the company, whereas Friends of the Earth, represented by Milieudefensie, is optimistic about prevailing in the appeal.
In response to the original decision, Shell initially pledged to accelerate its carbon emission cut. However, since the appointment of CEO Wael Sawan a year ago, the company has shifted a greater proportion of its investments back into oil and gas. In a notable policy shift, Shell announced in June that it would no longer pursue annual cuts of 1-2% in oil production, having achieved its initial output reduction plan ahead of the schedule.
According to the report, Milieudefensie pointed out that Shell, under its new leadership, has backtracked from its previous plan to produce less oil and gas, highlighting the company's continued investment in new projects within the sector. The environmental group claimed to have raised €650,000 ($707,000) through donations from more than 10,000 supporters to fund their legal battle against Shell's appeal.
SHEL, on the other hand, remains steadfast in its commitment to becoming a net-zero emission energy business by 2050. A company spokesperson emphasized that appealing the ruling does not alter this goal. However, Shell contends that the court's decision is impractical and counterproductive to global emission reduction, asserting that certain aspects are neither feasible nor reasonable for any single company to achieve.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. OII is well-positioned to supply equipment for deep-water projects.
Enbridge has an extensive oil and liquid pipeline system that spreads across 17,809 miles. A significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts. ENB anticipates substantial cash flows from the recently completed midstream projects.
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Shell's (SHEL) Appeal Against Climate Ruling to Begin in April
Shell plc’s (SHEL - Free Report) appeal against a climate ruling, which mandated the oil and gas giant to reduce its carbon emissions by 45% over the next decade, is scheduled to begin in April, per a Bloomberg report.
The appeal aims to reverse the 2021 verdict delivered by a Dutch court, ordering Shell to slash emissions equivalent to 740 million tons of carbon dioxide annually by 2030, based on the 2019 level. Notably, the ruling was not suspended, awaiting the outcome of the appeal, and did not specify how Shell should achieve the mandated emission cut.
In the impending legal dispute, Shell will confront the Dutch branch of Friends of the Earth, an environmental organization, in a four-day showdown scheduled between Apr 2 and Apr 12. Shell argues that the court's ruling unfairly targeted the company, whereas Friends of the Earth, represented by Milieudefensie, is optimistic about prevailing in the appeal.
In response to the original decision, Shell initially pledged to accelerate its carbon emission cut. However, since the appointment of CEO Wael Sawan a year ago, the company has shifted a greater proportion of its investments back into oil and gas. In a notable policy shift, Shell announced in June that it would no longer pursue annual cuts of 1-2% in oil production, having achieved its initial output reduction plan ahead of the schedule.
According to the report, Milieudefensie pointed out that Shell, under its new leadership, has backtracked from its previous plan to produce less oil and gas, highlighting the company's continued investment in new projects within the sector. The environmental group claimed to have raised €650,000 ($707,000) through donations from more than 10,000 supporters to fund their legal battle against Shell's appeal.
SHEL, on the other hand, remains steadfast in its commitment to becoming a net-zero emission energy business by 2050. A company spokesperson emphasized that appealing the ruling does not alter this goal. However, Shell contends that the court's decision is impractical and counterproductive to global emission reduction, asserting that certain aspects are neither feasible nor reasonable for any single company to achieve.
Zacks Rank & Key Picks
Shell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Enbridge Inc. (ENB - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. OII is well-positioned to supply equipment for deep-water projects.
Enbridge has an extensive oil and liquid pipeline system that spreads across 17,809 miles. A significant portion of the midstream operator’s earnings is generated from transportation operations, driven by a string of long-term contracts. ENB anticipates substantial cash flows from the recently completed midstream projects.