Shell Hit by Second Dutch Emissions Suit; Refining Margins Return to Mid-Cycle
Environmental activists launched a second lawsuit in the Netherlands demanding Shell halt new oil and gas field developments after a 2024 Court of Appeal overturned a prior emissions ruling. JPMorgan flagged European refining margins returning to mid-cycle levels but said Shell is best placed to withstand margin pressure.
1. Second Dutch Emissions Lawsuit
Environmental group Milieudefensie delivered a summons on April 21 demanding that Shell stop bringing new oil and gas fields into production, arguing such investments conflict with the Paris Climate Agreement and will increase greenhouse gas emissions.
2. Overturned Ruling and Ongoing Appeal
In 2021 a Dutch district court ruled Shell must cut emissions, but the 2024 Court of Appeal overturned that decision; Milieudefensie has since taken the case to the Supreme Court while Shell retains a secondary listing in Amsterdam after moving its headquarters abroad.
3. Refining Margin Resilience
JPMorgan reports European refining margins peaked in March and have since fallen back to mid-cycle levels, but finds Shell's integrated downstream operations and cost controls position it better than peers to manage margin pressure.