How Shell makes billions in profits despite low oil price

October 30, 2025

Profit is not only in oil

Profits don’t just come from crude oil sales. These days, Shell earns handsomely from gas, trading and so-called “deepwater” projects: oil fields miles below the sea’s surface, including in Brazil and the Gulf of Mexico. There the pumps were running at full speed, good for record production and solid earnings. Shell’s trading division, where oil and gas are smartly purchased and resold, also delivered higher-than-expected profits. That division is precisely benefiting from the turmoil in the energy market: the more price fluctuations, the more there is to earn with smart timing.

Investing less

Shell is also pumping less money into new projects than it used to. The company is keeping a tight rein on costs and prefers to use profits to keep shareholders happy. Thus, Shell announced a new $3.5 billion share buyback program – the sixteenth quarter in a row that has returned billions to investors. Buying back shares raises earnings per share and keeps the share price up. That makes Shell attractive to investors.

Less green

Under the leadership of top executive Wael Sawan, Shell has reversed from its earlier green course. The planned biofuels plant in Pernis was scrapped and the emphasis is back on traditional energy sources that make quick money. This is causing strong criticism from environmental organizations, which call the high profits a “horror show.”