The rise of a century-old giant: How did Shell transform from a small company to a global oil giant?

Shell plc, a multinational oil and gas company located in London, England, was founded in 1907 and has a history of more than 100 years. Through continuous mergers and expansion, Shell has grown from a small company to the world's second-largest investor-owned oil and gas company, second only to ExxonMobil. How can this process not be amazing?

Shell is a publicly listed company, mainly listed on the London Stock Exchange, and also has secondary listings on Amsterdam Euronext and the New York Stock Exchange, which clearly shows its global business layout.

Origin and development

The Royal Dutch Shell Group was formed from the merger of Royal Dutch Petroleum Company and "Shell" transport and trading company. The merger was designed to compete with America's Standard Oil and quickly made Shell one of the world's largest oil-producing companies. By 1920, Shell was a global oil and gas production giant.

The company resulting from this merger gave the new group 60% of the shares to Royal Dutch Petroleum and 40% to Shell, which meant that the two companies were formally integrated but remained legally independent.

Shell’s growth has not been smooth sailing. With the outbreak of World War I, Shell became the main fuel supplier to the British army, and was constantly affected by external challenges and market changes throughout the process. In 1929, Shell entered the chemical industry and dominated the global oil market.

Continuous innovation and expansion

In the second half of the 20th century, Shell became a member of the Seven Sisters Oil Companies, dominating the global oil industry. Through Shell-Mex's merger with BP, Shell's market share in the UK has increased significantly. As market demands changed, Shell acquired the mining company Billiton in 1970, a strategy that established a stronger foundation in the market.

In the 1980s, Shell actively used advanced technology and became the first company to adopt computers in the Netherlands, demonstrating its emphasis on innovation.

Reorganization and adaptation

With the advent of the 21st century, Shell is facing pressure to protect the environment globally, especially amid volatile oil prices and economic instability. The company decided to simplify its stock structure in 2005 and changed its name to Royal Dutch Shell plc. The restructuring will help clean up the management structure and make it more flexible in the market.

In 2016, Shell's BG Group acquisition elevated it to become the world's second-largest non-state-owned oil company, reflecting the company's continued growth in the market.

Coping with challenges and looking to the future

In recent years, Shell has faced pressure from all aspects, including the impact of the COVID-19 epidemic on global oil and gas demand. In 2020, Shell was forced to cut its dividend for the first time since World War II. In addition, the company also began to restructure to respond to changing market needs. In 2022, Shell once again announced that it would move its headquarters back to London and rename it Shell plc, showing its commitment to the future.

With the rapid development of energy technology, Shell announced that it will gradually reduce its dependence on traditional oil and natural gas and actively invest in the field of renewable energy.

Today, Shell has more than 44,000 service stations around the world, produces approximately 3.7 million barrels of oil equivalent, and has operations in 99 countries. These achievements make Shell more than just an oil company, but an important energy supplier with a global presence.

In the future, whether it can continue to lead the wave of global energy transformation will be the primary challenge that Shell must face?

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