Allard castelein


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Allard castelein

  1. 1. ROYAL DUTCH SHELL PLC TBLI 2010 ALLARD CASTELEIN VICE PRESIDENT ENVIRONMENT 1 Copyright of Royal Dutch Shell plc 13/10/2010
  2. 2. DEFINITIONS AND CAUTIONARY NOTE The 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 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 in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside 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. 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’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ 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 the Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve 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 potential litigation and regulatory measures as a result of climate changes; (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 factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2009 (available at and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 12 Nov 2010. Neither Royal Dutch Shell 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. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. 2 Copyright of Royal Dutch Shell plc 13/10/2010
  3. 3. AGENDA • Energy Scenarios • HSSE at Shell • Surface Non-Technical Risks (NTR’s) • ESG/SRI Engagement 3 Copyright of Royal Dutch Shell plc 13/10/2010
  4. 4. ENERGY SCENARIOS THREE HARD TRUTHS I. Global energy demand is growing II. Energy supply will struggle to keep up with demand growth III. Climate change looms as a critical global issue INCREASING POPULATION: INCREASED PROSPERITY: key driver of energy demand increased energy use GJ per capita (primary energy) 400 300 USA Europe EU 15 200 Japan South Korea 100 China India 0 0 10 20 30 40 GDP per capita (PPP, ‘000 2000 USD) SOURCES: World Bank WDI, Oxford Economics, UN Population Division, Energy Balances of OECD Countries © OECD/IEA 2006, Energy Balances of Non-OECD Countries © OECD/IEA 2006 4 Copyright of Royal Dutch Shell plc 13/10/2010
  5. 5. HSSE & SUSTAINABLE DEVELOPMENT A PRIORITY OF SHELL STRENGTHENING DELIVERY & ACCOUNTABILITY TRACK RECORD EXAMPLE: FOCUS ON SAFETY Injuries - TRCF per million working hours Project profitability Environment Technology Safety Employees and contractors per million working hours; Shell operated facilities COMMITMENT Social “As part of the Shell Business Principles, we commit to contribute to sustainable development. This requires balancing short and long term interests, integrating economic, environmental and social considerations into business decision-making.” Shell General Business Principles Data 100% basis for companies and joint ventures where we are the operator 5 Copyright of Royal Dutch Shell plc 13/10/2010
  6. 6. PARTNERSHIPS GLOBAL AND LOCAL Total # of projects in 2010: 30 • IUCN: 9 • WI: 10 • TNC: 8 • EW: 3 6 Copyright of Royal Dutch Shell plc 13/10/2010
  7. 7. ESG STRATEGY • Broad introduction of Shell's governance, commitment to sustainable development, environmental & social KPIs, performance track record, reporting and assurance. EXAMPLE: CONVEYING SHELL’S LONG TERM TRACK RECORD & COMMITMENT TO SUSTAINABLE DEVELOPMENT 7 Copyright of Royal Dutch Shell plc 13/10/2010
  8. 8. ENVIRONMENTAL STRATEGY • Bringing environmental management closer to the core of business plans and decisions Energy Challenge Shell to help meet global energy challenge of demand, supply and CO2. Energy Business Challenge Strategy Shell Business Strategy Reflects, supports, and as appropriate guides, business strategy. Competitive Performance Helps deliver effective and efficient management of Competitive Valued Energy environmental risk, opportunity and reputation. Performance Provider Valued Energy Provider Helps Shell maintain and earn its licence to operate and grow. 8 Copyright of Royal Dutch Shell plc 13/10/2010
  9. 9. SURFACE & NON-TECHNICAL RISKS SAKHALIN AOSP ARCTIC & TIGHT GAS Sakhalin Salmon Initiative Alaska drilling & seismic program Lunskoye Platform Onshore pipeline route Athabasca River Groundbirch – tight gas drilling 9 Copyright of Royal Dutch Shell plc 13/10/2010
  10. 10. OIL SANDS - CCS PROJECT QUEST • Capture CO2 at the Scotford Upgrader from 3 Hydrogen Units • >1 mtpa CO2 will be transported by pipeline and stored over 2 km underground • Letters of Intent with Government of Alberta and Government of Canada -- ~C$865 million • Public consultation and project scoping ongoing • FID in 2012 QUEST PROJECT PROPOSED TIMELINE 10 Copyright of Royal Dutch Shell plc 13/10/2010
  11. 11. PAD DRILLING: REDUCING SURFACE FOOTPRINT PINEDALE: SHELL OPERATED JONAH: NON-OPERATED Up to 4 pads each pad having up to 32 wells Up to 64 pads with each pad having a single well SQUARE MILE OVERVIEW SQUARE MILE OVERVIEW Adjacent gas fields, different development impacts Shell setting new standards for surface footprint reduction 11 Copyright of Royal Dutch Shell plc 13/10/2010
  12. 12. ESG ENGAGEMENT STRATEGY FOCUSSED MESSAGING & PRO-ACTIVE ENGAGEMENT • In depth & pro-active dialogue on selected topical issues e.g. CO2 management & Oil Sands development. • Ongoing environmental & social KPI progress update. • Incorporating ESG messaging in all shareholder communications • Frequent site visits for various stakeholders SITE VISITS - OIL SANDS DISCUSSIONS WITH ALL STAKEHOLDERS ON MEDIA & SHAREHOLDER VISITS TO NEW DEEPWATER DRILLING STANDARDS BIOFUELS JOINT VENTURE IN BRAZIL 12 Copyright of Royal Dutch Shell plc 13/10/2010
  13. 13. GULF OF MEXICO WELL SAFETY WELL CONTAINMENT SYSTEM WELL DESIGN & SAFETY FLEXIBLE + ADAPTABLE SYSTEM FOR SPILL CONTAINMENT • Real Time Operating Centre • GOM - Subsea containment equipment • Rig Safety Case • Designed to safely capture, store & offload oil • Multiple Barriers • Rapid deployment • Global Standards • Designed for10,000 feet of water & 100k bpd capacity • Rigorous training • Estimated $1bn investment between partners 13 Copyright of Royal Dutch Shell plc 13/10/2010
  14. 14. BEST PRACTICE PROGRAMME BENEFITS FOR SHAREHOLDERS AND SHELL • Enhanced relationship with shareholders through direct dialogue and disclosure on ESG • Enhanced reputation in financial markets through recognition of Shell’s ESG efforts and performance • Award winning programme to Socially Responsible Investors 14 Copyright of Royal Dutch Shell plc 13/10/2010
  15. 15. ROYAL DUTCH SHELL PLC TBLI 2010 QUESTIONS? 15 Copyright of Royal Dutch Shell plc 13/10/2010