June 20, 2012
In a bid to be the first oil company to destroy Santa’s home Royal Dutch (NYSE:RDS.A) announced it will begin test drilling north of Alaska in July. A venture that Royal thinks will be a hydrocarbon bonanza comes with plenty of risk both for the company and for cute little Coca-Cola polar bear cubs. This is mostly uncharted territory for drillers of course as it is NORTH of Alaska. Have a look at this map: (Source: Google)
In fairness to Royal here are their safety plans for the Arctic.
What to do
While we are not thrilled about Arctic drilling we actually have an ulterior motive for our “stance” on Royal here: put options. If we have a belief that a stock will go down we can profit from that and limit our downside by buying put options. Repeat: I don’t actually advocate this trade (here are trades I like), I wish instead to demonstrate how to take a bearish position on a stock using put options.
So here is our “thesis”: Royal Dutch’s stock price will decrease significantly in the near/mid term for the following reasons:
- The Arctic will require a lot of capital expenditure
- Cheap shale energy will make Arctic drilling uncompetitive
- A lot of bad press (like this)
- Santa
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
