Upload
vuongkhuong
View
214
Download
1
Embed Size (px)
Citation preview
1 Copyright of Royal Dutch Shell plc May 11, 2016
ANNUAL ROUNDTABLE FOR SOCIALLY RESPONSIBLE INVESTORS ROYAL DUTCH SHELL PLC MAY 11, 2016
2 Copyright of Royal Dutch Shell plc May 11, 2016
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
3 Copyright of Royal Dutch Shell plc May 11, 2016
DEFINITIONS & CAUTIONARY NOTE
The New Lens Scenarios are part of an ongoing process used in shell for 40 years to challenge executives’ perspectives on the future business environment. We base them on plausible assumptions and quantification, and they are designed to stretch management to consider even events that may be only remotely possible. Scenarios, therefore, are not intended to be predictions of likely future events or outcomes and investors should not rely on them when making an investment decision with regard to Royal Dutch Shell plc securities.
Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.
Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.
Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.
Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, May 11, 2016. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
4 Copyright of Royal Dutch Shell plc May 11, 2016
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
5 Copyright of Royal Dutch Shell plc May 11, 2016
AGENDA
09:00 – 09:45 Ben van Beurden and Hans Wijers
09:45 – 10:15 Harry Brekelmans
10:15 – 11:00 Q+A
11:00 – 11:15 Coffee break
11:15 – 13:30 Panel sessions Q&A (40 min each, 5 minutes to rotate)
13:30 – 14:30 Lunch
6 Copyright of Royal Dutch Shell plc May 11, 2016
PANELS
Panel A: New Energies and low carbon technologies / Group HSSE: Harry Brekelmans (Director Projects and Technology), and Matthew Tipper (VP Alternative Energies).
Panel B: Conventional oil + gas: Bart van de Leemput (EVP Upstream International Operated), Osagie Okunbor (Managing Director SPDC), and Rupert Thomas (VP Environment).
Panel C: Shell scenarios + CO2 management: Jeremy Bentham (VP Global Business Environment), and Angus Gillespie (VP CO2).
7 Copyright of Royal Dutch Shell plc May 11, 2016
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
SRI programme
SRI annual roundtable
Ongoing engagement + roadshows
SRI themed site visits – Alaska and Oil Sands + Quest in 2015
Governance programme
Remuneration committee roadshows
Chairman roadshows
AGM
www.shell.com/esg
8 Copyright of Royal Dutch Shell plc May 11, 2016
TRANSPARENCY
Sustainability reporting
Portfolio resilience
Revenue transparency
Nigeria spills website
Oil sands performance report
Nigeria briefing notes
CDP Sustainability report
1997 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
9 Copyright of Royal Dutch Shell plc May 11, 2016
NIGERIA SPDC JOINT VENTURE
*SPDC JV = 30% Shell, 55% NNPC, 10% Total, 5% Agip; all data on 100% basis unless stated
SPDC JV* spills Thousand tonnes
volume of operational spills number of operational spills >100kg (RHS)
volume of sabotage spills number of sabotage spills >100kg (RHS)
2015 Overview Restructuring onshore footprint
2010 – 2015 divested 13 OMLs
Targeted investments: gas and pipelines
Widespread oil theft remains a challenge
7 fatalities, 20 kidnappings in 2015
Production k boe/day
Concessions – SPDC Legal Divested Concessions Major Rivers/Sea Final investment decisions
Legend
OML 4
OML 40
OML 41 OML 38
OML 42 OML 34
OML 30 OML 26
OML 21
OML20
OML 79
OML 43
OML 27
OML 28
OML 31
OML 35
OML 46
OML 32
OML 36 OML 23 OML 11
OML 29
OML 18
OML 72
OML 24 OML 33
OML 25
OML 77 OML 74 OML 71
Forcados Yokri Integrated
project OML 45
Southern Swamp Associated Gas
Gbaran Ubie Phase 2 OML 22 OML 17
10 Copyright of Royal Dutch Shell plc May 11, 2016
GRONINGEN EARTHQUAKES – NETHERLANDS GAS
force: 0.1–1.0 3.5 and higher
2015 Key Milestones
Hazard and risk assessment submitted
Set up of independent organisation for damage repairs and to make homes safer
Multi-year initiative from National Coordinator
Loppersum
2012-2015 Earthquakes
Government decisions
€1.2bn mitigation programme
2015/2016 production cap of 27 bcm
New production decision by October 2016
0 10 20km
www.namplatform.nl
11 Copyright of Royal Dutch Shell plc May 11, 2016
SHAREHOLDER RESOLUTIONS
2015 “Aiming For A” Strategic resilience for 2035 and beyond
Supported By Board + shareholders
Builds on previous Shell disclosures
Report-out in full in 2016
2016 “Follow-this.org” Shell will become a renewable energy company
Not considered by Board to be in best interests of Company and shareholders
Resolution ignores timescale and impact for profitability
Unwise to tie Shell to any single mandate
12 Copyright of Royal Dutch Shell plc May 11, 2016
2015 SHAREHOLDER RESOLUTION REPORT OUT
Resolution Information Request
Ongoing reporting
Annual report and 20F
Sustainability report
www.shell.com/ghg CDP submission
Ongoing emissions management
Asset portfolio resilience to post-2035 scenarios
Low-carbon R&D and investment strategies
Strategic KPIs and executive incentives
Public policy position
Increased disclosures built into 2015 Annual report and 20F and Sustainability Report
Additional Shell Energy Transitions and Portfolio Resilience report produced
13 Copyright of Royal Dutch Shell plc May 11, 2016
HANS WIJERS SENIOR INDEPENDENT DIRECTOR AND CHAIR OF THE CSRC
ROYAL DUTCH SHELL PLC
14 Copyright of Royal Dutch Shell plc May 11, 2016
CORPORATE AND SOCIAL RESPONSIBILITY COMMITTEE
Responsibilities:
Review policy and performance for Shell General Business Principles and Code of Conduct
Review management of HSSE and social impacts of projects and operations
Monitor emerging environmental and social issues
Input into the Shell Sustainability Report
CSRC MEMBERS
HANS WIJERS
Chair of CSRC
PATRICIA WOERTZ
SIR NIGEL SHEINWALD
15 Copyright of Royal Dutch Shell plc May 11, 2016
CSRC ACTIVITY
Brazil biofuels
GoM operations
Separate visits:
Moerdijk, Peterhead CCS
Groningen - NAM
Nigeria
2015 Activity
2016 Planned visits
Social and environmental considerations incorporated through all stages of major projects
Special topics 2016: Climate change and energy transition, Nigeria and seismic activity in Groningen
Gulf of Mexico Nigeria
16 Copyright of Royal Dutch Shell plc May 11, 2016
CSRC INPUT IN SUSTAINABILITY METRICS
*2006 Solomon EII methodology
Operational Spills Volume in thousand tonnes
Energy intensity – refineries (indexed to 2002)*
Total recordable case frequency (TRCF) Simple + make sense externally
Drive improvement – stretching over time
Accommodate effects of growth and portfolio changes
Injuries per million working hours
17 Copyright of Royal Dutch Shell plc May 11, 2016
WORKING WITH OTHERS
Leverage external expertise
Apply at a project level
Share best practice
Focus on policy outcomes for energy transition
Broad industry participation
Long-term environmental partnerships
Energy transition Commission
18 Copyright of Royal Dutch Shell plc May 11, 2016
SOCIAL INVESTMENT
$122 mln voluntary social investment
$97 mln contractual social investment
Core themes:
Access to energy
Road safety
Employment within communities
Global Alliance for Clean Cookstoves partner
$12 mln financial support
Advisory, technical and business support
Shell foundation partnered Envirofit
1 million affordable clean cookstoves sold
Improving 5 million lives
Across 45 countries
2015 Social Investment campaigns
Shell Foundation: Clean cookstoves
Social investment programme on road safety Clean cookstoves programme
19 Copyright of Royal Dutch Shell plc May 11, 2016
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
20 Copyright of Royal Dutch Shell plc May 11, 2016
SUBSTANTIAL + LONG-LASTING SHIFTS IN ENERGY LANDSCAPE THE WORLD IN 2050
Population 9 billion people,
75% living in cities (2 billion more than today)
Vehicles 2 billion vehicles
(~1.2 billion today)
Rising standards Many millions of people will rise
out of energy poverty; with higher living standards energy use rises
Energy demand Could double from its level in
2000…but CO2 emissions must be half today’s to avoid serious
climate change
Efficiency Twice as efficient, using
half the energy to produce each dollar of wealth
Renewables 3 times more energy
from renewable sources
21 Copyright of Royal Dutch Shell plc May 11, 2016
ENERGY TRANSITIONS ADVOCACY + STRATEGY
1: The New Lens Scenarios were based on 2011 IEA data, whereas the IEA World Energy Outlook 2015 scenarios are based on 2014 IEA data
Explore alternative views of the future
Long-term trends in economics, energy supply and demand, geopolitical shifts and social change.
Shell scenarios since the 1970s
Energy transitions and portfolio resilience GtCO2/year
Shell and IEA scenarios1
Oceans Mountains
IEA Current policies IEA New policies IEA 450 ppm
22 Copyright of Royal Dutch Shell plc May 11, 2016
TRANSITIONS IN THE GLOBAL ENERGY MIX
23 Copyright of Royal Dutch Shell plc May 11, 2016
GLOBAL ENERGY MIX
Source: IEA World Energy Outlook 2015
Primary energy supply
Energy supply – 80% oil, gas + coal $55 trillion infrastructure invested
Oil 31%
Coal 29%
Gas 21%
Biomass 10%
Renewables 4%
Nuclear 5%
13.7 btoe
Energy consumption
9.4 btoe
4.3 btoe
Losses + transformation
24 Copyright of Royal Dutch Shell plc May 11, 2016
ENERGY INFRASTRUCTURE
Average Infrastructure Turnover In Years
25 Copyright of Royal Dutch Shell plc May 11, 2016
AVOIDING EMISSIONS GROWTH
Source: IHS Energy © 2015. Illustrations sourced from Shutterstock by IHS
About 2/3 of the coal plants in the United States
DOUBLING the current number of installed turbines worldwide
Nearly DOUBLE the number of passenger vehicles in the US
To avoid 1 gigatonne of CO2 equivalent of annual emissions growth:
26 Copyright of Royal Dutch Shell plc May 11, 2016
PORTFOLIO MANAGEMENT
Risk, performance & uncertainty
RESILIENCE
Growth & returns Opportunity scale
ATTRACTIVENESS
THEMES
RESULTS & PAY-OUT PORTFOLIO
27 Copyright of Royal Dutch Shell plc May 11, 2016
Regular forecasting of emissions
Outlook on CO2 price
2016E
PORTFOLIO RESILIENCE: SHELL EMISSIONS OUTLOOK
Area shows Shell’s estimated annual direct and indirect CO2 emissions (equity basis).
2030E
High
Zero
CO2 price
28 Copyright of Royal Dutch Shell plc May 11, 2016
PORTFOLIO RESILIENCE: SHELL STRATEGIC THEMES
Demand shift in existing markets
New markets for low carbon products
Technology innovation
Conv Oil
Oil Products
Oil Sands Mining
Deep Water
Shale Oil
Shale Gas
Integrated Gas
Chemicals Conv. Gas
New Energies
29 Copyright of Royal Dutch Shell plc May 11, 2016
SHELL STRATEGY + ENERGY TRANSITIONS
Source: Shell analysis
Long-term energy supply mix Million boe per day
Managing emissions
Gas in Shell’s energy mix
Increased emphasis on New Energies
Energy transitions underway
Gas
Biomass Wind
Coal Nuclear Other renewables Solar
Shell activities Oil
+50%
+20%
30 Copyright of Royal Dutch Shell plc May 11, 2016
ONGOING EMISSIONS MANAGEMENT
Data on a 100% operated basis unless otherwise specified
* Indirect emissions were not recorded before 2009
2015 endorsed the World Bank’s Initiative to Reduce Global Gas Flaring
"Zero Routine Flaring by 2030"
Emissions Million tonnes CO2 equivalent
Energy intensity GJ/tonne (energy required to produce a tonne of oil equivalent)
Upstream excl. Oil sands and GTL Refining Chemicals
index
Million tonnes hydrocarbon flared
Flaring performance
www.shell.com/ghg
31 Copyright of Royal Dutch Shell plc May 11, 2016
GROWING NATURAL GAS IN SHELL
Meets 30% of The Philippines’ energy needs
Shell share 45%
Started up Oct 2015
Sustained production until 2024
Queensland LNG Example: deep water and LNG
Gas: around 50% of reserves and production
Growth in LNG portfolio 2016+
Cleanest fossil fuel
8.5 mtpa capacity
Shell share: train 1- 50%, train 2- 97.5% (Operated)
Train 1 startup Dec 2014
Malampaya phase 3
32 Copyright of Royal Dutch Shell plc May 11, 2016
NEW ENERGIES – INVESTMENT CONTEXT FUTURE OPPORTUNITIES
Energy Transition
Digital platforms
Increasing electrification
Greater customer choice
Renewables growth
Disruptive business models
Mobility transition
33 Copyright of Royal Dutch Shell plc May 11, 2016
SHELL: OPPORTUNITIES IN NEW ENERGIES FUTURE OPPORTUNITIES
Material value + upside
Assessing options + technologies
Capped exposure
New Energies
Integrated Energy
Solutions
New Fuels
Connected Customer
Capital employed $1.75 bln : biofuels, wind, solar, hydrogen
$200 mln estimated 2016 spend
34 Copyright of Royal Dutch Shell plc May 11, 2016
SHELL: NEW FUELS
Leading Brazilian producer of sugar and ethanol
Shell branded fuels business
~900 MW bio-power generation
2015 earnings: $300 mln
Testing new markets + R&D potential
Transport opportunity
Germany Joint Venture: 400 stations by 2023 (2/3 Shell sites)
Biofuels – Raízen Joint Venture - Brazil Hydrogen
35 Copyright of Royal Dutch Shell plc May 11, 2016
SHELL: INTEGRATED ENERGY SOLUTIONS
c. 500MW capacity in USA + Netherlands
Venture capital support for technology
Assessing new opportunities
Solar steam for EOR operational in Oman
Expansion plans up to 1GW
Assessing further PV opportunities
Wind Solar
Mount Storm wind project, West Virginia, USA Glasspoint [Glasspoint] Glasspoint solar EOR, Oman
36 Copyright of Royal Dutch Shell plc May 11, 2016
Connected Energy
Capture value from power market disruption
Shell today:
No. 2 wholesale power marketer in USA
Participates in most organized power markets
Access to ~ 9,000 MW generating capacity across USA
SHELL: CONNECTED CUSTOMER
Connected Mobility
Enabled by data and connectivity
Reducing inefficiencies in mobility
Branded fuels and lubricants
Shell MiGarage App
SENA trading
37 Copyright of Royal Dutch Shell plc May 11, 2016
HARRY BREKELMANS DIRECTOR PROJECTS AND TECHNOLOGY ROYAL DUTCH SHELL PLC
38 Copyright of Royal Dutch Shell plc May 11, 2016
ASSET INTEGRITY AND PROCESS SAFETY
PREVENTING AND MITIGATING MAJOR SAFETY INCIDENTS
Goal Zero: No Harm, No Leaks Assets are safe and we know it
TOP EVENT
THRE
ATS
CO
NSEQ
UEN
CES
Leadership behaviours
Effective design and application of barriers
Standards and processes
Motivated, competent people
Continuous improvement
Control barriers Recovery measures
Plan
Do
Act
Check
1
3 4 5
2
39 Copyright of Royal Dutch Shell plc May 11, 2016
No harm to people
No leaks
12 Life saving rules
SHELL + BG HSSE INTEGRATION
Safety remains priority
Many similarities
Combination to follow Shell’s safety requirements by end 2016
Goal Zero
Incident and injury free workplace
One Team
10 Life savers
Zero Injuries
40 Copyright of Royal Dutch Shell plc May 11, 2016
CONTRACTOR SAFETY MANAGEMENT
Contractors are critical to achieve Goal Zero
> 240,000 contractors
Represent 75% of total exposure hours
Perform most high risk activities
Involvement in most incidents
Number of fatalities
Total recordable case frequency (TRCF) Injuries per million working hours Contractor performance is improving
across the oil & gas industry
41 Copyright of Royal Dutch Shell plc May 11, 2016
CONTRACTOR SAFETY MANAGEMENT EXAMPLE: CONSTRUCTION SITE SAFETY STANDARDISATION
Standardised approach
Make working easier and safer
Reduce HSE exposure
Deliver consistency across projects
Improve experience and learnings transfer
Safety poster produced in 12 languages
Toolbox talk kit
Arabic
Bahasa Malay
Bengali
Chinese
Dutch
English
French
Hindi
Norwegian
Portuguese
Spanish
Thai
42 Copyright of Royal Dutch Shell plc May 11, 2016
CONTRACTOR SAFETY MANAGEMENT EXAMPLE: KOREAN SHIPYARD SAFETY STANDARDISATION
What:
Single standard safety approach
Used at all projects and assets
Continuous improvement of safety culture
Why:
Workers often short term tenure
Workers move frequently
Safety seen as barrier to productivity
Value:
Productivity increases
Reduced training cost + orientation time
Incident reductions
Construction of Prelude FLNG, Korea
Safety day presentation, construction of Prelude FLNG, Korea
43 Copyright of Royal Dutch Shell plc May 11, 2016
HSSE PERFORMANCE
Goal Zero on safety Injuries – TRCF/million working hours
Spills - operational Volume in thousand tonnes
Energy intensity – refineries Energy Intensity Index (EEITM)
Process safety Number of incidents
million working hours
Working hours (RHS) TRCF
Tier 1 incidents Tier 2 incidents HSSE priority
Performance + transparency
44 Copyright of Royal Dutch Shell plc May 11, 2016
MANAGING EMISSIONS
Oil Sands upgrader
Quest start-up 2016
~1 mtpa CO2 sequestered
Bukom refinery Singapore ~68 MW cogeneration unit installed in 2015 Recovering waste heat to generate steam
Carbon Capture and Storage: Canada Cogeneration: Singapore
Examples
45 Copyright of Royal Dutch Shell plc May 11, 2016
LOW CARBON OPPORTUNITIES (2015)
EXPLORATION
LNG
MTPA = Million tonnes per annum
LNG (6.3 MTPA) LNG (24.2 MTPA)
TECHNOLOGY CENTRE MONGSTAD OTWAY BASIN PROJECT QUEST
GORGON
ADSORPTION TECHNOLOGY CCS ALTERNATIVE
QATAR CARBONATES AND CARBON STORAGE CENTRE
BANGALORE R&D ADVANCED BIOFUELS
WESTHOLLOW RESEARCH CENTRE ADVANCED BIOFUELS
RAÍZEN ADVANCED BIOFUELS
RAÍZEN BIOFUELS
SOLAR PHOTOVOLTAIC (PV) CELLS
GLASSPOINT SOLAR TECHNOLOGY
SHELL TECHNOLOGY VENTURES E-MOBILITY BATTERY
TECHNOLOGY FUTURE ENERGY
TECHNOLOGIES
H2 NETWORK EUROPE, USA
H2 NETWORK GERMANY
H2 NETWORK (5 SITES)
2-B ENERGY TURBINE TECHNOLOGY
OFFSHORE (50 MW net) ONSHORE (450 MW net)
RESEARCH & DEVELOPMENT
ENGINEERING & DESIGN
FINAL INVESTMENT DECISION
ON STREAM
INCREASING TECHNOLOGY MATURITY
LNG (6.5 MTPA)
PETERHEAD (1MTPA)
Commercial operation (volumes in Shell share)
Technology demonstration/research
Used in Shell operations
CANSOLV TECHNOLOGY
Project cancelled
FID taken
Project progressed
46 Copyright of Royal Dutch Shell plc May 11, 2016
NEW ENERGIES R+D INVESTMENTS- BIOFUELS
Advanced ethanol mill
Bolt-on to the Costa Pinto mill
Adapted from Iogen energy technology
2015 production
Woody biomass into fuels
Shell proprietary system
Licenses in Virent technology
Development program at Shell’s Technology Centre in Houston, USA
Converts waste into fuels
Demonstration plant to be built at Shell’s Technology Centre in Bangalore, India
Technology developed by Gas Technology Institute + Shell
Raízen advanced biofuels Reversible acid pre-treatment & ensiling energy crops
Integrated hydropyrolysis and hydroconversion
47 Copyright of Royal Dutch Shell plc May 11, 2016
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
48 Copyright of Royal Dutch Shell plc May 11, 2016
QUESTIONS AND ANSWERS
ROYAL DUTCH SHELL PLC MAY 11, 2016
49 Copyright of Royal Dutch Shell plc May 11, 2016
ADDITIONAL INFORMATION
ROYAL DUTCH SHELL PLC MAY 11, 2016
50 Copyright of Royal Dutch Shell plc May 11, 2016
HUMAN RIGHTS
Objectives
Due diligence to avoid infringements of rights
Effective systems
Grievance mechanisms
INDUSTRY COOPERATION Human Rights Due Diligence Human Rights & Impact
Assessment Grievance Mechanisms
POLICY COMMITMENT
Shell General Business Principles
Shell Code of Conduct
HSSE & SP Control Framework Supplier Principles
SHELL FOCUS AREAS Contracting & Procurement Human Resources Security Social Performance
Governance: HSSE SP Exec & Human Rights Working Group
Partnerships: Danish Institute for Human Rights
51 Copyright of Royal Dutch Shell plc May 11, 2016
ALASKA EXPLORATION
2015 Burger J well completed; water-bearing
Operated exceptionally well
Exploration halted for “forseeable future”
Demobilised staff, rigs and support vehicles
2016 Ongoing demobilisation
Final removal of equipment
52 Copyright of Royal Dutch Shell plc May 11, 2016
BRENT FIELD DECOMMISSIONING
Brent Delta Topside plan submitted
Consultation + resubmission
Target date single lift: 2017
Full field decommissioning plan to follow
8 year stakeholder engagement
~ 180 bodies
Includes environmental groups and NGOs
www.shell.co.uk/brentdecomm
53 Copyright of Royal Dutch Shell plc May 11, 2016
OIL SANDS UPDATE
Focus on emissions management
Aspire to have equivalent intensity to average barrel refined in US
Progress over a number of years:
Integrated mine planning
Start up of Quest CCS – 1mtpa CO2
Turnarounds in 2015 well managed
Significant focus on cost
Head count – staff and contractors – reduction
Energy costs reduced
Canada AOSP emissions update Economic update Cash operating costs $/bbl
Cash operating cost excl. energy Energy DD&A (clean)
54 Copyright of Royal Dutch Shell plc May 11, 2016
WATER MANAGEMENT
Water regulation evolving rapidly
Water management plans
water scarce areas
future water scarce areas
Centre of Excellence in Bangalore:
Integrated project delivery
Technical support
Water R&D
Dawson Creek water reclamation, Groundbirch
Shell fresh water withdrawn Million cubic metres
55 Copyright of Royal Dutch Shell plc May 11, 2016
STRATEGIC KPIS AND EXECUTIVE INCENTIVES
5% weight Personal Safety
5% weight Process Safety
30% weight CFFO
50% weight Operational Excellence
10% weight Safety
20% weight Sustainable Development
10% weight Sustainability
2% weight Water use
4% weight Oil Spill volumes
4% weight Energy Intensity
2015 EXECUTIVE BONUS STRUCTURE
56 Copyright of Royal Dutch Shell plc May 11, 2016
NEW ENERGIES R+D INVESTMENTS – OTHER EXAMPLES
Internet of Energy
Software applications
Link with energy storage
Reduce cost and increase reliability of flexible electricity delivery
Develop high-performance batteries
non-toxic
cost-effective
industrial scale
Balance energy production and demand
Growing Energy Labs Inc (Geli) Kite Power Solutions Aquion Energy
Accessing high altitude wind which is less intermittent
Aim to reduce the cost of wind energy
57 Copyright of Royal Dutch Shell plc May 11, 2016
ANNUAL ROUNDTABLE FOR SOCIALLY RESPONSIBLE INVESTORS ROYAL DUTCH SHELL PLC MAY 11, 2016