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Comment on Shell branding and alleged anti-Shell bias of this website

April 7th, 2008 08:46

Dear Sir, I have no doubt that Mr. Briggs is right re Branding etc. As a veteran oil executive working for another major but not Shell, I must admit that I address first the matter of the bottom line and the return to investors. Like with every major oil company, the E&P division is the main contributor for both, sometimes to the tune of 70 to 80 percent. Downstream operations, albeit lucrative, are only contributors to the tune of 20 maybe 30 percent of revenues. Branding is probably no more than a fraction in terms of adding to said bottom line in the big picture. By all means, have a go at Shell if you think they are doing wrong (I personally think you exaggerate the negatives and deliberately neutral on the positives but that is a personal view) but you are giving the Branding issue more prominence than it merits.

David

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2 Comments

  1. David says:

    Mr. Briggs,
    Thanks for responding. Yes, I do agree with you that maybe some integrated oil companies could shed their marketing operations and do better as a result. I would rather control the full value chain, generate the cash flow but, maybe, farm out the marketing element. Shell is doing so for their IT unit. Unlike some on this site I do think it is a wise move. Integrated oil firms should consider, indeed, to remove themselves from the actual branding and marketing and let experts (like EDS for the IT farm-out in Shell) deal with it.
    Respectfully,
    David

  2. Paddy Briggs says:

    David

    Your post illustrates the problem neatly. Marketing is an alien subject to most senior oil men these days but for Shell and the other Majors it shouldn’t be. These very big businesses should IMHO be split off and run by marketers not geologists, drillers, accountants and engineers.

    Regards

    Paddy