Shell stock was trading at $50.41 as of 09:41 AM EDT on Thursday

The largest oil refinery in Europe, Shell’s (NYSE:SHEL) Pernis facility in the Netherlands, malfunctioned on Thursday, adding to the uncertainty for the continent’s diesel market, which is already being affected by strikes in France. Following the incident, the nearby 404K bbl/day refinery has been flaring excessive amounts of gas.

Governments have been informed about the event, according to Shell (NYSE:SHEL), but the impact on the fuel supply will depend on what went wrong and where it happened.

There has been no movement, according to TotalEnergies (NYSE:TTE), in getting its French oil depots and refineries, whose workers are still on strike, to resume delivering oil products to gas stations. Growth & Value Trading has issued an article on Seeking Alpha stating that Shell (SHEL) has “huge potential over the next five years, bolstered by its dedication to achieving net zero by 2050.”

Petronas Deal, Shell Stock Outlook

Malaysia’s Petronas announced on Thursday that it has struck a production-sharing agreement with TotalEnergies and Shell for an ultra-deepwater block off the Sabah region of the country. A unit of TotalEnergies (NYSE:TTE) will operate the project and hold a 34.9% share, according to Petronas. A unit of Petronas will hold a 40% participation interest, while the remaining portion will be split between two units of Shell (NYSE:SHEL).

According to the Malaysian business, the 1,952 sq km ultra-deepwater Block 2K is situated in a known hydrocarbon basin. Between Block 2K and four other ultra-deepwater blocks off the coast of Sabah, a total of four wells are anticipated to be drilled in 2022 and 2023. In recent research posted on Seeking Alpha, Daniel Thurecht argues that TotalEnergies’ (NYSE:TTE) new capital allocation model is superior to BP and Shell.

LNG is the focal point of Shell’s long-term strategy. To become the largest producer and transporter of LNG in the world, this London-based company acquired BG Group in 2016 for $50 billion. Being a major supplier of LNG, Shell should be able to meet the rising demand for fuel and help the company’s cash flow since the demand for LNG exports is expected to increase significantly in the short- to medium-term.

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Featured Image-  Megapixl @ Mino21

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