Tuesday, September 29, 2015
Shell Pulls Out of the Arctic
big story this week is that Royal Dutch Shell will cease exploration in the arctic. Reportedly, they had invested in $7 billion in the effort but the prospects don't look so good now after disappointing results, a fall in the price of oil, and increased uncertainty over environmental regulations. The important lesson that Shell recognized is that a $7 billion sunk cost is still a sunk cost.