Helena Lyng Blak
3 weeks ago

The Lucrative Earnings of Shell’s Crude Trading Revealed

Discover the staggering profits Shell racks up from U.S. crude trading, as unveiled in a recent court deposition.
Shell gas station on April 7, 2012 in Jacksonville, Florida. — Photo by ventanamedia
Shell gas station on April 7, 2012 in Jacksonville, Florida. — Photo by ventanamedia

In a rare insight into the trade earnings of British multinational oil and gas company Shell plc, a testimony by a former employee revealed the massive profits of the company’s crude trading.

Eva-Maria Frohn, a former trading manager, sued Shell in a Texas state court, alleging that the company had breached its contract with her, seeking $15 million. Last Tuesday, however, Frohn’s claim was dismissed in its entirety by the jury.

But before that could happen, a former head of Shell’s US crude trading group who was with Shell for 11 years, John Dimech had to deliver a testimony, as Reuters reports.

It is Dimech’s deposition that provides a unique perspective into Shell’s trading business. The deposition reveals that Shell earns roughly $1 billion in United States dollars each year in its crude trading of oil and natural gas, typically landing somewhere between $950 million and $1 billion in an average year.

The earnings amount to around 14% of Shell's total profits in the U.S. before taxes.

In the early hours of trading on Tuesday, April 29, Shell’s American stock took a slight dip of roughly 0.80% after having surged around 10% year-to-date.

West Texas Intermediate (WTI) crude oil, one of the main benchmarks in oil pricing, has seen a modest decline in the last month of 4.68%, but stands strong at a 14.17% increase year-to-date and a 13.82% increase since this time last year.

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