Shell is keen to reassert its oil and gas credentials, judging by its acquisition of ARC Resources, a $13.9bn deal completed at the beginning of the month. The deal adds around 370,000 barrels of oil equivalent production per day and is expected to be accretive to free cash flow from 2027 onwards.

With Wael Sawan at the helm, Shell has pared its relative exposure to low-margin renewable energy projects to focus on fossil fuel production. European majors were rather more committed to green energy pursuits than their transatlantic counterparts, part of the reason why the likes of Chevron and Exxon Mobil have attracted much higher forward multiples. Higher multiples reduce oil companies’ cost of capital.

None of this will be lost on Peter Costello, Shell’s president of upstream. He has been in the fold for 10 years following Shell’s combination with BG Group. Beyond the ARC Resources deal, the group’s upstream operations have demonstrated organic growth, with record upstream production in Brazil. Adjusted earnings were $9.8bn and operating cash flow $21.4bn.

Shell’s share price is up 27.6 per cent over the past 12 months. Costello has taken advantage of the rise, offloading £1.17mn worth of shares in separate disposals in Amsterdam and London on August 28.