Balancing Act: Big Oil’s Future Amid the Climate Crisis
After purchasing $750 million in equity of energy giant Shell, Daniel Loeb demanded something radical: He wanted his investment dismembered. Loeb, CEO of the hedge fund Third Point LLC, penned a passionate Third Quarter letter to his investors wherein he outlined the competing interests within Shell. To Loeb, Shell’s simultaneous commitments to fossil fuels production and renewable energy sources have resulted in “an incoherent, conflicting set of strategies attempting to appease multiple interests but satisfying none.” Loeb’s solution? Balkanize Shell into multiple companies, each with a narrow focus.