By Andy Critchlow January 27, 2016
Shell Chief Executive Ben van Beurden can breathe easier after shareholders backed his big gamble on oil prices rebounding. Only 17 percent of investors voted against his $50 billion takeover of BG Group on Jan. 27. Cost savings estimated at $3.5 billion will help assuage some worries, and paying partly in shares insulates some of the market effect, but the $60 oil Van Buerden says is needed for the deal to create economic value still looks far away.
Brent crude futures have dropped 46 percent since Shell announced the tie-up in April 2015, forcing Van Beurden to find more cost savings. Around 2,800 jobs will be cut from the combined company because of the deal, while Shell is reducing its workforce by 7,500 between 2015 and 2016. More savings may have to be found if oil prices continue falling. BG’s current headquarters in the sleepy British town of Reading are likely to become a stranded asset.
The vote may look like a vote of confidence that he can cut costs to the bone, and that oil prices will rise. It no doubt helps that oil bears will have sold out long ago – and that there is little else for oil majors to do with their cash beyond hoard it or give it back. Shell already axed plans to drill in the Arctic back in September. Teaming up with BG looks less risky, but should crude plummet to $20 per barrel and stay there, Van Beurden’s big bet could be his last.
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
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: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
