Shell has officially denied reports that it is in early talks to acquire BP, following speculation in the Wall Street Journal about a potential mega-merger between the two oil giants. A Shell spokesperson stated "This is further market speculation. No talks are taking place."

A Shell-BP deal would represent one of the largest energy mergers in history, potentially positioning Shell to better compete with U.S. rivals like Exxon Mobil and Chevron. BP has struggled financially in recent years, dealing with investor activism and undergoing a strategic reset that shifts away from renewables to refocus on fossil fuels.

BP's market capitalization of $82 billion now trails significantly behind other major oil companies, raising questions about its long-term viability as an independent entity. However, BP's CEO Murray Auchincloss recently stated they are focused on executing their own strategy rather than potential mergers.

BP is currently undergoing significant changes, including selling off renewable energy assets and doubling down on oil and gas investments. The company is divesting its U.S. onshore wind portfolio, selling stakes in solar and offshore wind businesses, and conducting strategic reviews of other units.

While a Shell-BP merger would create a formidable competitor to U.S. oil majors, both companies insist they are focused on their individual strategies for now. However, ongoing challenges in the energy sector may continue to fuel speculation about potential consolidation among the oil majors.