But that leads to the second debate, sparked by activist investor Dan Loeb. He is pushing Royal Dutch Shell to split into two pieces—“Green Shell” and “Brown Shell.” Green Shell would benefit from investor enthusiasm around clean energy, presumably have a lower cost of capital, and therefore be better able to meet the demands of rapid scaling. Brown Shell would have a higher cost of capital, grow more slowly, but reap nice dividends for those who own it…which, of course, they could always reinvest in Green Shell. In our conversation yesterday, Looney remained firmly committed to keeping both the “green” and “brown” businesses under one roof. From the interview:

“There is huge synergy…Let’s say you wanted to start an EV charging company tomorrow. The number one issue you have is access. There are 550 million people who live within 20 minutes of a BP site. Why wouldn’t we use that?

“I’ll give you another example. Let’s say you want to start a sustainable aviation fuel business. To decarbonize aviation, you will need to do three things: One, you need feedstock. We’ve got one of the largest trading organizations in the world to trade commodities…The second thing you’ll have to do is build a plant. We have decades of experience in building plants …And the final thing is you have to do is sell it. BP is in 700 airports globally, in 70 countries. We already have the infrastructure, the airports, the decades-long relationship with every airline in the world.

“So you look at that and think: My god, why wouldn’t you use that innate capability and help the world transition?”

We’ll publish the full interview with Leadership Next next week, accessible on Apple or Spotify—along with lots of other great CEO interviews. Spoiler alert: the best part was when my cohost Ellen McGirt asked him how to pronounce his first name. He quoted a friend who advised: “When your last name is Looney, who cares?”

Alan Murray
@alansmurray
alan.murray@fortune.com

TOP NEWS

PayPal CEO

Dan Schulman will step down as PayPal CEO by the end of this year, nearly a decade after joining the company. His tenure saw heavy growth but, more recently, contraction. His replacement has not yet been named. Fortune

Yahoo layoffs

Yahoo is the latest tech firm to announce layoffs—1,000 people, or around 12% of Yahoo’s total workforce. This is just the start; the company wants to reduce its headcount by a fifth by the end of the year, with its Yahoo for Business ad tech unit coming out half the size. Fortune

Russian oil

Russia will cut its oil production by around 5% next month, in retaliation against Western price caps. The move sent Brent crude futures up more than 2%, making a weekly gain of 8% likely. Reuters

AROUND THE WATERCOOLER

Larry Summers says the economy could be headed towards a ‘Wile E. Coyote moment’, by Will Daniel

‘We’re not seeing any signs of consumer weakness’: Uber’s CEO says the company’s strong quarter shows how people are spending their money very differently from a year ago, by Tristan Bove

Elon Musk reportedly fires top Twitter engineer for sharing an uncomfortable truth: People just aren’t that interested in his antics anymore, by Nicholas Gordon

President Zelenskyy calls out SpaceX chief who says the country has ‘weaponized’ satellite internet: Either support Ukraine’s ‘right to freedom’ or Russia’s moves to ‘kill & seize’, by Associated Press

Bank of America: ‘Black-owned businesses are growing–but they need our continued support to thrive’, by D. Steve Boland

This edition of CEO Daily was edited by David Meyer.