I wanted to add a FTSE100 oil stocks into my personal pension (SIPP) about 18 months ago and I looked into it closely Shell (LSE: SHEL) shares.

Then I bought it BP (LSE:BP). This is not a slight against Shell. In my opinion it was a better run operation. So why did I hug a problem child?

First, its shares were cheaper. Profitability was higher (above 6% at that time). My investment period was years, decades, preferably for life. Which gave BP plenty of time to sort things out and get back to life, rewarding me for my patience. Unfortunately, BP is making headlines right now for all the wrong reasons. Again.

What’s wrong with BP?

On Wednesday (May 27), BP dismissed CEO Albert Manifold with immediate effect “serious concerns” relating to “important standards of management, supervision and conduct”. All this is disputed by Manifold. I suspect it’s going to get messy.

Since the Deepwater Horizon disaster in 2010, BP has been in a mess. Beyond Petroleum’s transition to renewable energy sources ended in failure. In 2022, due to the war in Ukraine, it suffered a huge loss of $25.5 billion on its shares in Russia’s Rosneft.

The boardroom looks cluttered, with chief executives Bernard Looney and successor Murray Auchincloss having moved on at brief notice. Including interim appointments, as of 2020, BP has five CEOs and three presidents. Recent releases suggest this may be systemic rather than bad luck.

Or do I regret my decision buy BP? Not at all. Because since I bought the stock, BP has overtaken Shell.

BP’s share price is up about 43% over the past year, compared with 28% for Shell. Dividends were also higher. I should note that over five years Shell beats BP, increasing its value by 130% compared to 72%. So much of the recent action has been about catching up. But my timing has worked so far. Or maybe I was just lucky.

Ultimately, boardroom dramas matter less than the price of oil. As the war in Iran threatens supply shortages and causes market volatility, BP is making money, especially through its trading arm. The same is, of course, with Shell. However, the outlook could quickly turn around if peace comes to the Middle East.

Could both stocks fall at the same time?

Despite their powerful recent performance, both look like reasonable value. BP trades futures at a price-to-earnings ratio of around 7.6. Shell is only a little more exorbitant at around 7.98. It’s closer than before. Dividend income is the key attraction for me and this is where BP wins. The projected profitability of Shell this year is 4.94%, and in 2027 it will raise to 5.16%. The yield on the Shell futures contract is 3.7%, and in 2027 it will reach 3.83%.

I’m cheerful with BP, even if Shell is a better run company. But it desperately needs a strategic shake-up. Additionally, if the Iran war ends and oil prices decline, both stocks could soon head south.

I plan to hold BP through hefty and slim, but I wouldn’t consider buying either stock at this time. This remains a cyclical sector and I prefer to buy when they are in the doghouse rather than ride high. Perhaps I will get another chance in the anxious weeks ahead.

Is it worth investing £5,000 in Shell Plc now?

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Harvey Jones owns shares of BP.