RUSSIA UKRAINE GEOPOLITICS AND JUMP OF SHELL PLC
INTRODUCTION
The development of any economy plays a very important role in increasing the GDP of any country. Primarily, the economy and GDP of any particular country would only develop when the top most companies operating in any particular country would not develop. Hence, the economy of any country is directly proportional with the development of companies. If we take the example of America, there are
new emerging companies entering into the market and helping in the development of an American economy. In this way, we can conclude that the development of any company plays a very important role in the development of any economy.
Apart from that the GDP of any particular country doesn’t grow because of trade in their country, but because of exports the companies maintain a high level of GDP. The company is currently recording first- quarter profits of more than $ 9.6 in the first three months of this year. The company is oil and petroleum companies have made huge profits in the market. The basic reason for surging profits is the theory of demand and supply.
As the demand for oil and petrol are increasing and the supply is decreasing because of the Russia- Ukraine war. Several countries imposed sanctions on Russia and due to which there was a huge demand created in order to comply with oil and petroleum demand.
HISTORY OF SHELL PLC
Shell was established by Royal Dutch Shell Group in April 1907 through the amalgamation of two rival
companies. The merger of two companies assists both the companies for having an overall advantage.
The Royal Dutch Petroleum Company of the Netherlands and the Shell Transport and Trading Company
Limited of the United Kingdom.
The idea was to compete in the Global oil market. The Royal Dutch
Petroleum Company basically founded in 1890 to develop an oilfield while Shell Transport Trading
company was a British company, founded in 1897 by Marcus Samuel. He, 1st Viscount Bearsted, and his
brother Samuel Samuel. The first use of the shell name dates back to the end of 19th century, then the
brand has grown to be the world’s most recognised company. Basically, at the point of time kerosene that they were exporting to Asia ,they chose Shell. They chose this name because kerosene sales came to
dominate the business, the name was adopted for the new import. – export organization that was primarily set up in 1897. Only Shell name was recognised for the company when the both the companies merged in order to make a single entity. Then basically the company started expanding in the world in the business of oil and petroleum.
SPARKS IN THE PROFIT OF SHELL PLC
The third largest oil and petroleum company in the European market i.e. Shell PLC. Shell has been
accused of a “ profiteering bonanza” after it made record first quarter profits of more than $ 9.6 ( 7.6 bn).
The company is the highest ever point on the stock exchange of New York.
The company in its first –quarter has made a record profit. Profit making of any individual company depends on many factors such as the efficiency of performance, work culture, demand, supply and effectiveness play a very vital role in the development. The company is the latest oil company to be reported as having high profits , even when the fossil fuels are increasing pressure to cut climate – changing carbon emission.
The CEO Wael Sawan said in a statement that Shell can deliver important energy that is required in this
ever changing world. As the company had produced better than expected profits in the first three months of the year basically. As it has been stated in the book Rich Dad Poor Dad by Robert Kiyosaki, that if you earn more than you will pay more taxes. So, the company is paying a huge amount of tax. As there is
a concept of windfall tax if any industry makes unexpectedly high profits, the government has raised the
Special Additional Excise Duty on crude petroleum from zero to Rs. 64,000 per ton.
The company in spite of paying more taxes is able to earn high profits. This shows that the company is actually earning
due to increasing demand. The demand for crude and petroleum is primarily increasing because of the
Russia –Ukraine war. Many companies have imposed sanctions on Russian crude oil. It is a known fact
that everyone needs oil and petroleum in order to cope up with the demands, and if one side is blocked
then people would basically find another way for the same.
OPINIONS AND SUGGESTIONS
The profits and growth of any company are based on market sentiments. What people demand would play an important role in the development of any company. If there is huge demand then no one can stop any company from growing faster in the market. Making profits is sometimes expected on market analysis but also on unexpected happenings, like in this case because of Russia – Ukraine no one knows that this may create such a huge demand for Shell and other oil and petroleum companies to grow.
Therefore, in order to grow and make the best place in the market, the companies should work on many
factors like efficiency of management, environment analysis, skilful people and demand supply situation.
