Royal Dutch Shell plc socially responsible investors briefing in London, April 24, 2013


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Peter Voser, Chief Executive Officer and Chad Holliday, Non-Executive Director and Chairman of the Corporate and Social Responsibility Committee presented to Shell’s Socially Responsible Investors in London during the annual socially responsible investors briefing.

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Royal Dutch Shell plc socially responsible investors briefing in London, April 24, 2013

  1. 1. Copyright of Royal Dutch Shell plc April 24, 2013 1INVESTING FOR SUSTAINABLE GROWTHLONDONAPRIL 24, 2013ROYAL DUTCH SHELL PLC
  2. 2. Copyright of Royal Dutch Shell plc April 24, 2013 2DEFINITIONS AND CAUTIONARY NOTEThe companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate 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 alsoused where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shellcompanies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies overwhich Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control norjoint control are referred to as “associates”. In this presentation, joint ventures and associates may also be referred to as “equity-accountedinvestments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding inWoodside Petroleum Ltd.) 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. Allstatements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statementsof future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertaintiesthat could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-lookingstatements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressingmanagement’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use ofterms 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 thatcould affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-lookingstatements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand forShell’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 successfulnegotiation 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 marketconditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts withgovernmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes intrading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statementscontained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affectfuture results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2012 (available at These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by thereader. Each forward-looking statement speaks only as of the date of this presentation, [insert date]. Neither Royal Dutch Shell plc nor any of itssubsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherinformation. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained inthis presentation.We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibitsus 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, availableon the SEC website You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
  4. 4. Copyright of Royal Dutch Shell plc April 24, 2013 4AGENDAPlenary Presentation & Q&A: Peter Voser and Chad Holliday:9:00 – 10:00Coffee & pastry break: 10:00 -10:35Q&A (40 min each, 5 minute break): 10:40 – 13:40Group A: North America update + Project delivery & safety:Marvin Odum and Matthias BichselGroup B: Scenarios:Jeremy BenthamGroup C: Oil Sands, Climate change:Lorraine Mitchelmore and Angus GillespieGroup D: Nigeria and RDS environmental policy, Water and Partnerships:Mutiu Sunmonu and Allard CasteleinLunch (all together): 13:40 - 14:30
  5. 5. Copyright of Royal Dutch Shell plc April 24, 2013 5SAFETY + ASSET INTEGRITYSTANDARD ASSET INTEGRITYMANAGEMENTIntegrityLeadershipTechnicalIntegrityDesignIntegrityOperatingIntegrity Promoting Chronic Unease to avoid complacency Technical process safety discipline team Improving worksite hazard awareness40050060070080090001234503 04 05 06 07 08 09 10 11 12‘GOAL ZERO’ ON SAFETYinjuries – TRCF/million working hours million working hoursWorking hoursTRCFMWCC testing (6,900 ft), GOM, July 2012
  6. 6. Copyright of Royal Dutch Shell plc April 24, 2013 6SRI FIELDTRIPS & ENGAGEMENTSUSTAINABILITY REPORTINGTRANSPARENCYNigeria,
  7. 7. Copyright of Royal Dutch Shell plc April 24, 2013 70102030STRATEGYLONGER TERMGROWTHPRIORITYENGINESORGANIC CAPEX 2013$ billionFUTUREOPPORTUNITIESRESOURCESPLAYSDEEP-WATERINTEGRATEDGASUPSTREAMDOWNSTREAMUPSTREAM Growth strategy; price upside Priority: deep-water, integrated gas,resources playsDOWNSTREAM Optimize re-shaped portfolio Selective growthCLIMATE CHANGE Grow gas and biofuels CCS and energy efficiencyFINANCIAL OUTLOOK Investing for growth and competitive payout Through-cycle returns and risk management
  9. 9. Copyright of Royal Dutch Shell plc April 24, 2013 9ACTIVITIES OF THE CSRC2012 Activities Nigeria Visit Gannet platform, North Sea2013 Plans Alaska / Arctic Local stakeholder engagement Government and regulatory Karoo, South Africa Tight gasGannet “A” platform, UK North SeaWhaling ceremony, Nuiqsut, Alaska
  10. 10. Copyright of Royal Dutch Shell plc April 24, 2013 10PARTNERSHIPSWORKING TOGETHER Leverage outside expertise Scientific organizations NGOs Governmental bodiesEXAMPLE: IRAQ - MAJNOON IUCN and Wetlands International Government capacity strengthening Biodiversity preservation Marshes classified as Wetland ofInternational Importance (Ramsar)EnvironmentalSocialMajnoon, June 2012Majnoon, natural flooding, February 2013MULTI STAKEHOLDERAPPROACH
  11. 11. Copyright of Royal Dutch Shell plc April 24, 2013 11REVENUE TRANSPARENCYSHELL POLICY Commitment to transparency Country-level tax disclosure Working with host governments EITI board positionMANDATORY REPORTING LEGISLATION Implementation ongoing Definitions of “project” and usefulinformation Potential conflict with host country lawsand current contracts Choice of which law to follow Competitive disadvantage~$25 BLN TAXES & ROYALTIES~$85 BLN EXCISE TAX COLLECTED IN 2012LEADERSHIP IN TAX
  12. 12. Copyright of Royal Dutch Shell plc April 24, 2013 12SCENARIO COMPARISONNEW LENS SCENARIOSOilGasBiomass/BiofuelsWindCoalNuclearOther RenewablesSolar02505007501,000Exajoules2000 2030 2060 40 years of scenarios Designed to stretchmanagement thinking Testing business models Contrasting plausible viewsof the future Are not a forecastSCENARIOS IN SHELL
  14. 14. Copyright of Royal Dutch Shell plc April 24, 2013 14POTENTIAL FUTURE WATER FOOTPRINT GLOBAL SHELL INITIATIVES CEO Water Mandate World Business Council forSustainable DevelopmentOPERATIONAL LEVEL ACTIONSWATER-ENERGY-FOODGroundbirch reclaimed water facility, CanadaHigh:Medium:Low:ResourcesPlaysFutureOpportunitiesUpstreamEngineDeep Water DownstreamEngineIntegratedGas
  15. 15. Copyright of Royal Dutch Shell plc April 24, 2013 15GASCCSBIOFUELSENERGY EFFICIENCYCLIMATE CHALLENGEGlobal ManufacturingRaizen, BrazilSakhalin LNG, RussiaQuest, Scotford complex, Canada
  16. 16. Copyright of Royal Dutch Shell plc April 24, 2013 16OILOILGASGAS01234SHELL PRODUCTIONMillion boe/dGASProductionSplitPriceExposure20112017/18ProductionSplitExpectedPriceExposureOILPRICELINKEDAFFORDABLEABUNDANTACCEPTABLEOILPRICELINKED20120 200 400 600 800 1000 1200CCGTUSCOld CoalIGCCCARBON EMISSIONSKg C02/MWhrCCGT: Combined Cycle Gas TurbineIGCC: Coal Integrated Gasification Combined CycleUSC: Ultra Super Critical CoalCCS: Carbon Capture & StorageWith CCSTraditional
  17. 17. Copyright of Royal Dutch Shell plc April 24, 2013 17RAIZEN: BRAZIL JV formed 2011, 50-50 Shell/Cosan ~4,500 retail sites 2.2 bln litres ethanol capacity/yrSHELL Sold 7.7 bln litres of biofuels in 2012 97% independently certified or met ourown sustainability clausesBIOFUELSBonsucroCertified Mills2011 2012MechanicallyHarvested Cane2011 2012050100150200250H2 11 H1 12 H2 12$ millionSHELL EARNINGS FROM RAIZEN 2012 PROGRESS
  18. 18. Copyright of Royal Dutch Shell plc April 24, 2013 18QUEST CCS FID September 2012 1 mln tonnes/yr C02 capture and storagepotential Reduce up to 35% of upgrader emissions Safe storage certification by DNV (1st timefor a CCS project) Expected onstream 2015CARBON CAPTURE AND STORAGE (CCS) &ENERGY EFFICIENCYENERGY INTENSITY85909510010500.5103 04 05 06 07 08 09 10 11 12Upstream excl. Oil Sands & GTLRefining IndexChemicals IndexUpstream – gigajoules/tonnes production IndexEXAMPLE: PULAO BUKOM ~$230 mln co-gen investment FID’d 2012 C02 savings of ~0.1mtpa when onstream Manufacturing wide rollout of Energymanagement softwareQuest CCS project, Canada oil sands
  19. 19. Copyright of Royal Dutch Shell plc April 24, 2013 1901002003004005002005 2006 2007 2008 2009 2010 2011 20120.00.51.02008 2009 2010 2011 2012PERSONAL SAFETY INDICATORSper million working hoursShell in Nigeria TRCF (total recordable case frequency)All data on a Shell operated basisSHELL IN NIGERIA2012 PROGRESS Significant operational spill volumereduction Remediation backlog essentially cleared Forcados Yokri & Southern SwampAGG/Domestic gas FID’s020406080024682006 2007 2008 2009 2010 2011 2012thousand tonnesSPDC: OPERATIONAL SPILLSvolume of spills: number of spills (RHS):#REMEDIATION PERFORMANCE# of spills sitesNo. Spills in Year all causes Total Outstanding
  20. 20. Copyright of Royal Dutch Shell plc April 24, 2013 20NIGERIA: SPDC JV FLARINGSPDC = 30% Shell, 55% NNPC, 10% Total, 5% Agip; all data on 100% basisSPDC JV FLARE VOLUMES & INTENSITYMMscf per day Mscf/bbl0. AGG/Dom gas FIDs Completion in 2014/2015; ~ $4 billion Gas gathering, facility upgrades and new oilproduction When complete this should take SPDC JVflaring intensity below current globalindustry averageFORCADOS YOKRI & SOUTHERN SWAMPSouthern Swamp, Proposed gas plant at TunuFlaringFlaring intensity (RHS)2000 – 2012: 80% REDUCTIONIN FLARING
  21. 21. Copyright of Royal Dutch Shell plc April 24, 2013 21NIGERIA OIL THEFTIllegal refining, Imo River, Q3 2011 Attempted theft, Trans Niger Pipeline, Q3 2012Large scale illegal refining along the Nembe Creek trunk line, Q1 2013
  22. 22. Copyright of Royal Dutch Shell plc April 24, 2013 22NIGERIA SPDC: INDUSTRIAL SCALE CRUDE THEFTNiger Delta wide UN theftestimate of 150,000 bbl/d or~55,000,000 bbl/year2012 Spills due to sabotageon SPDC rights of way orfrom SPDC facilities24,545 bbl2012 Operational Spills1,359 bbl075150kbbl per dayMeasured as stolen fromSPDC trunk lines:~60,000 bbl/d or~22,000,000 bbl/year~70% recovery of spilled oilduring cleanup in 2012
  23. 23. Copyright of Royal Dutch Shell plc April 24, 2013 23 2 top holes drilled >20 vessels and 2,000 employees/contractors, ~12,000 employee rotations Positive support from community Kulluk rig incident 2013 pause in activity2012 ALASKA PERFORMANCEDRILLING FLUID BLOW OUT PREVENTERCAPPING STACK ARCTIC CONTAINMENTSYSTEM11223 43 4MULTIPLE DRILLING BARRIERSPhoto credit to Unified Command300 kmKulluk towed to safe harbour in Kiliuda Bay, Jan. 2013
  24. 24. Copyright of Royal Dutch Shell plc April 24, 2013 24BRENT DECOMMISSIONING Brent has produced 2 billion bbls of oil and5.8 tcf of gas Brent “Delta” ceased production Dec 31st2011 3 other platforms continue to produce Well abandonments already started Decommissioning plan to DECC Q1 2014STAKEHOLDER ENGAGEMENT 12 stakeholder dialogue sessions Brent “E-News” Independent review group for studies The Environmental Council providesfacilitation for stakeholder engagement Cell Management stakeholder task group size comparison with Canary WharfBrent field schematic, UK North Sea
  25. 25. Copyright of Royal Dutch Shell plc April 24, 2013 25RESOURCES PLAYSTIGHT GAS/LIQUIDS RICH SHALE2012 DEVELOPMENTS Center for Sustainable Shale Development(CSSD) launched Shell one of two founding industrypartners; eNGOs, foundations 15 audited performance standards Appalachia region GHG quantification work on-going withEDF and University of Texas Austin China operational build-up
  26. 26. Copyright of Royal Dutch Shell plc April 24, 2013 26SUSTAINABLE DEVELOPMENTEMBEDDED IN SHELL STRATEGY Building trust Communities, Society, Industry Taking Action Cleaner energy, CCS, water Partnerships and Principles Multi-stakeholder approach Environmental, Social“As part of the Shell Business Principles, wecommit to contribute to sustainabledevelopment. This requires balancing short andlong term interests, integrating economic,environmental and social considerations intobusiness decision-making.”Shell General Business PrinciplesReed bed filtration, PDO, Oman
  27. 27. Copyright of Royal Dutch Shell plc April 24, 2013 27QUESTIONS & ANSWERSINVESTING FORSUSTAINABLE GROWTH
  28. 28. Copyright of Royal Dutch Shell plc April 24, 2013 28INVESTING FOR SUSTAINABLE GROWTHLONDONAPRIL 24, 2013ROYAL DUTCH SHELL PLC