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Discover the story of Shell from its early beginnings as a London-based antiques retailer to the present day as one of the world's largest and most innovative energy companies.
1833-1892
In 1833, Marcus Samuel decided to expand his London store. He was already selling antiques, but decided to try selling oriental shells as well, taking advantage of their popularity in interior design at the time. Demand was so great that he began importing shells from the Far East, laying the foundations for an export-import company that eventually became one of the world's leading energy companies.
When Marcus Samuel senior died in 1870, his two sons, Marcuso junior and Samuel, took over the business and began to expand it. In the 1880s, they became particularly interested in oil exports. However, transport was a problem because the oil was transported in barrels which could leak and took up a lot of space. To solve this problem, they commissioned a fleet of steamers to carry oil in bulk, including the Murex, which in 1892 became the first oil tanker to pass through the Suez Canal.
1893-1900
The Murex's maiden voyage revolutionized the transportation of oil for the Samuel brothers. Bulk shipping significantly reduced the cost of oil by enormously increasing the volume that could be transported. The brothers' main competitor at the time was Standard Oil, famous for its blue cans of kerosene that, once emptied, could be used for anything from roofing to frying pans. To differentiate themselves, they created the Shell brand and painted their cans bright red. This tactic worked, and by 1896 the kerosene trade was making more money than all other shops combined.
In 1897, Marcus and Samuel renamed their company the Shell Transport and Trading Company and launched the first refinery at Balik Papan in Dutch Borneo. The refinery later had to be destroyed when the US declared war on Japan in World War II.
1901-1907
In 1901, when oil was discovered in Texas, Marcus Samuel Jr. struck the deal of a lifetime, acquiring transportation and distribution rights from his company's main competitor, Standard Oil. But by 1902, overproduction in Texas had reduced available supplies to virtually zero. At the same time, a smaller competitor, Royal Dutch, began building its own tankers and establishing its own sales organization in Asia. As a result, half of Shell's fleet lay fallow.
It was therefore decided in 1907 to merge the Shell Transport and Trading Company with Royal Dutch to form the Royal Dutch Shell Group. The day on which the telegram announcing the merger was received - 23 April - is now celebrated annually as Shell's birthday.
1908-1913
The merger with Royal Dutch marked a period of rapid expansion, with Shell (the group's name was quickly shortened to Shell) opening operations across Europe and in many parts of Asia. Exploration and production in Russia, Romania, Venezuela, Mexico and the US were also significant.
The following years have also provided Shell with many exciting opportunities to demonstrate the quality of its products in the rapidly expanding gasoline market. These included record-breaking races, flights and exploratory trips. In 1907, for example, Prince Borghese won a motor rally from Beijing to Paris with Shell Spirit motor oil. In Antarctica, Shell engine oil was used by explorers Ernest Shackleton and Captain Scott, while Bleriot's first cross-Channel flight was made with Shell Spirit.
1914-1945
Shell was a key partner of the Allies in both world wars. During the First World War, Shell became a major supplier of fuel to the British Army and also offered all its ships to the British Admiralty, including the Murex.
The post-war years were a period of rapid growth for oil companies as the use of cars and demand for petrol increased. Shell powered the first transatlantic flight by Alcock and Brown in 1919, developed new and improved drilling techniques, and in 1929 founded Shell Chemicals to advance the refining of chemicals from petroleum.
When World War II began, Shell's London office was dedicated to supporting the war effort, and the company's refineries in the US produced aviation fuel to support the Allied air forces. All Shell tankers came under government control and many Shell employees showed great bravery in keeping them running, including aviation ace Douglas Bader, who worked in Asiatic Petroleum's aviation department before joining the RAF in 1939. The war was also a catalyst for great innovation, with significant advances in fuel and chemical research, including the development of fuels for new generations of aircraft such as the Spitfire.
1946-1960
The immediate post-war years were some of the most difficult Shell had yet faced. Reconstruction was very expensive and the oil market was changing rapidly. Against this backdrop, Shell launched new exploration programmes in Africa and South America and built new refineries in the UK. The company also invested in larger and more powerful ships - supertankers - to carry more oil in bulk.
In 1947, the first commercial offshore well was drilled in the Gulf of Mexico, and within eight years the company had more than 300 such wells drilled. New discoveries were also made in Borneo and the Niger Delta, and in 1958 commercial oil production began in Nigeria.
The demand for oil at this time was boosted by a number of scientific advances, including the invention of the jet engine - its designer, Sir Frank Whittle, even worked for the company for several years.
1981-2004
In the 1980s, Shell began to grow through acquisitions. In 1986, the price of oil collapsed and a barrel of oil fell from $31 to $10 during the winter. To adapt to the lower oil price, Shell had to focus on cheaper development projects. Intensive research led to huge improvements in drilling techniques and the use of 3D seismic technology to find new sources of oil became widespread. These advances have allowed the company to develop offshore projects in much more challenging conditions. One example was the Troll field in Norway, and another was a well in the Gulf of Mexico where a new well was drilled to a depth of 2.3 km.
The 1990s saw tremendous advances in biomass and gas-to-liquid (GTL) technologies. In 1993, Shell opened the world's first commercial GTL plant in Bintulu, Malaysia, a pioneering move that set the stage for the growing role of this fuel in the following decade.
2005-2016
In 2005, the Royal Dutch Shell Group underwent a major structural reorganisation when the nearly century-old partnership between Royal Dutch Petroleum and Shell Transport and Trading was dissolved and Shell consolidated its corporate structure under a single new holding company, Royal Dutch Shell plc.
Shell's innovation has continued apace well into the 21st century. In 2012, the company completed the Pearl GTL project in Qatar, the largest source of GTL products in the world. In 2016, production began at Shell's Stones field, the world's deepest oil and gas project. And in 2017, Prelude, the world's largest floating liquefied natural gas facility, sailed 5,800 kilometers from a shipyard in South Korea to its new home in Western Australia.
The
Looking Ahead
When we look back over 185 years of Shell's history, it has been an amazing journey. Humanity has managed to adapt again and again through a century of rapid change and periodic upheaval, and so has Shell. But there are also great challenges ahead in the coming century.
Society today faces a challenge of unprecedented scale: how to meet growing energy needs while reducing carbon emissions.
Shell is an active participant in the energy system transformation and has embraced it as its own. The company sees a business opportunity in participating in the global effort to provide more and cleaner energy solutions. Prospering as the world transitions to a low-carbon energy system is a key objective and Shell's strategy, portfolio and strong financial framework will provide a source of resilience for years to come.
Understanding what climate change means for Shell is one of the biggest strategic issues facing the company's leadership. In seeking to answer this question, Shell is committed to continuing to work closely with society and its customers, as it has done for nearly 200 years.
