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Shell’s agreed takeover of BG Group is strategically sensible

We have no doubt that Shell’s agreed takeover of BG Group is strategically sensible

We have no doubt that Shell’s agreed takeover of BG Group is strategically sensible

We have no doubt that Shell’s agreed takeover of BG Group is strategically sensible; the combined business will have a dominant position in the LNG market and gas is increasingly being burned in developed countries to produce electricity. BG’s Brazilian reserves will have been a big carrot as the oil price slump makes it cheaper for oilcos to buy their smaller competitors and their established reserves than investing in exploration.

That said, £47 billion is a hell of a lot of money and we’re wondering if Shell’s shareholders would see a better long term return from a fraction of that money being spent on battery and energy storage R&D. 

The FT is predicting a spate of M&A activity in the oil and gas sector as the players fight over a declining market. 

Read the full story at the Financial Times.