Potential Bidders Are Looking at Shell’s Chemical Assets. How Investors Should View a Potential Sale.

Oil prices have been all over the place in 2026. Brent crude fell nearly 40% from its year-to-date (YTD) high of $118.35 on March 31 to $71.44 by July 1 after a U.S.-Iran peace deal reopened the Strait of Hormuz. Prices then rebounded more than 16% from that July low after the ceasefire broke down on July 8, helping make energy the best-performing S&P 500 sector ($SPX) during that period.

Shell (SHEL) has used the volatility to reshape its business. The company has sold assets that no longer fit its focus on oil, gas, and LNG, including India's Sprng Energy for $1.8 billion, Gulf of Mexico stakes for $1.7 billion, and Jiffy Lube International and Premium Velocity Auto for $1.3 billion. It also sold its European onshore renewables portfolio to TotalEnergies SE (TTE) and agreed to acquire Canada's ARC Resources Ltd. (ARX) in a deal valued at about $13.6 billion.

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Next could be Shell's U.S. chemicals business. The company has reportedly drawn interest from potential buyers, including ExxonMobil Corporation (XOM) and LyondellBasell Industries N.V. (LYB), in a deal that could fetch up to $8 billion.

Is offloading chemicals a smart capital-discipline move that sharpens Shell's focus on its stronger oil, gas, and LNG businesses? Let's find out.

Shell makes money across the energy chain, from oil and gas production to LNG, refining, chemicals, fuel sales, and trading. SHEL stock has gained 22.9% over the past 52 weeks and 23.4% so far this year.

Yet it still trades at 8.90x forward earnings, below the sector average of 12.69x.