A former US undersecretary for Energy has said BP (LON: BP) and Shell (LON: SHEL) would be welcomed in Houston if they relocated from London.
Writing in the Wall Street Journal, Paul Dabbar, who served under Donald Trump from 2017-2021, said pressure for these European majors to relocate to the US “could come to a head soon”, adding “a potential upside in a stock price of 100% is hard to ignore”.
“Before it comes to that,” he said, “I’m inviting all European oil and gas companies to relocate to America.
“I’m sure the governor of Texas would clear his schedule to help make such moves go seamlessly.”
It comes amid speculation around the future of Shell, in particular, around its listing in the London Stock market as CEO Wael Sawan highlighted the company position is undervalued compared to US peers.
© Supplied by Paul Dabbar / TwitteA move is being considered by London-listed Shell, with concern that any such move would spark an exodus from the City as Shell and BP’s share prices trail behind US rivals Chevron and ExxonMobil.
Former Shell CEO Ben van Beurden also chimed in to say the firm is undervalued.
Paul Dabbar suggested the US would be an easier place to recruit key workers and a smoother area to operate in politically.
He said: “European companies also feel pressure from governments and courts, leading to higher regulatory, statutory and litigation risks related to climate policy. In 2021 a Dutch court ordered Shell to reduce its corporate, supplier and customer carbon emissions by 45% by 2030.
“While U.S. companies also face local-government lawsuits, most market analysts see them as lower-risk than European litigation.
“A further challenge in Europe is recruiting employees with industry experience and developing a new generation of energy-sector workers. The talent pool in Houston or Denver is more experienced than in London or Paris, with many young trade workers and graduates of U.S. universities eager to sign on with traditional energy companies.”
Analysts and investors have meanwhile suggested BP could be a potential takeover target after underperforming compared to its peers in recent years.
It was revealed earlier this month that UAE state-owned ADNOC considered potential takeover bid for BP, before deciding against the move.
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