Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Technical Presentation (June 2014)
28 slides from Shell's technical presentation, Jun 27, 2014
Slide 1: Environmental, Social & Governance Investor Programme 2014
ENVIRONMENTAL, SOCIAL & GOVERNANCE INVESTOR PROGRAMME 2014 27 JUNE, 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc June 27, 2014 1
Slide 2: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE 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 c
Slide 3: A Technical Overview of Resources Plays
A TECHNICAL OVERVIEW OF RESOURCES PLAYS ALISON GOLIGHER EXECUTIVE VICE PRESIDENT AL DUNLOP OPERATIONS EXCELLENCE UPSTREAM INTERNATIONAL RESOURCES PLAYS Copyright of Royal Dutch Shell plc June 27, 2014 3
Slide 4: Liquids-Rich Shale to Tight/Shale Gas
LIQUIDS-RICH SHALE TO TIGHT/SHALE GAS Conventional Oil & Gas Liquids-Rich Shale Structurally Trapped Oil Stratigraphically CBM Trapped Oil Low Permeability Oil Window Liquids-Rich Potential Gas Window Shale Gas Potential Permeable Sandstone Gas Oil Water (Brine) Shale Tight Sandstone Copyright of Ro
Slide 5: Tight Gas: Three Different Types
TIGHT GAS: THREE DIFFERENT TYPES Tight Gas Shale Gas Coalbed Methane Water to separator PUMP or discharge Gas to pipeline Water Coal bed Gas Occurs in ‘tight’ sandstone Natural gas trapped in very Natural gas in coal (organic Low porosity = Little pore space small pores and adsorbed on mater
Slide 6: Typical Timescale for Development (Greenfield Developments)
TYPICAL TIMESCALE FOR DEVELOPMENT (GREENFIELD DEVELOPMENTS) 1 Idea: Data Gathering, Access Negotiation Significant Time to prove play •Leasing, environmental assessment, permits and policies Different from USA 2 Exploration Wells •Prove Up Play, Assess Mobility Long producing life with ongoing
Slide 7: Tight/Shale Oil and Gas Lifecycle
TIGHT/SHALE OIL AND GAS LIFECYCLE Explore Appraise Pilot Harvest Q. Can we reach Q: Does the play Q: Productivity? Q: Can we produce sustainable economic exist/work ? economically ? production? Development well Best well or sweet spot Development area varies with Critical Success Factors for Tight/S
Slide 8: Lifecycle of a Tight/Shale Gas & Oil Development Animation
LIFECYCLE OF A TIGHT/SHALE GAS & OIL DEVELOPMENT ANIMATION Finding And Producing Tight/Shale Oil And Gas www.youtube.com/watch?v=w9mmsekadgw Copyright of Royal Dutch Shell plc 27 June, 2014 8
Slide 9: Typical Aspects of a Development
TYPICAL ASPECTS OF A DEVELOPMENT Copyright of Royal Dutch Shell plc 27 June, 2014 9
Slide 10: How We Operate: Our Operating Principles
HOW WE OPERATE: OUR OPERATING PRINCIPLES SAFETY & WELL INTEGRATION Shell designs, constructs and operates wells and facilities in a safe and responsible way. AIR Shell conducts its operations in a manner that protects air quality and controls fugitive emissions as reasonably practicable. FOOTPRINT S
Slide 11: Groundwater Protection: Well Integrity and Isolation
GROUNDWATER PROTECTION: WELL INTEGRITY AND ISOLATION Groundwater protected by a series of physical barrier that last over the life of the well Casing is cemented in place to below the level of potable water before drilling proceeds Baseline data and monitoring of surrounding water wells Stro
Slide 12: Fluids Used in Slick Water Hydraulic Fracturing
FLUIDS USED IN SLICK WATER HYDRAULIC FRACTURING Additives Might Include: Guar Gum / Hydroxyethyl Cellulose Ethylene Glycol Sodium / Potassium Carbonate Sodium Chloride Borate Salts Citric Acid N,n-dimethyl Formamide Glutaraldehyde Acid Petroleum Distillate ≈1% Isopropanol Potassium Chloride Compound
Slide 13: Water Management
WATER MANAGEMENT Water is a critical aspect of any Tight/Shale Oil & Gas development Typically 5,000 to 20,000 m3 of water is required per well (about 2 to 8 Olympic-size swimming pools) Responsible sourcing, handling and disposal are essential Recycling is potentially an economic as well as
Slide 14: Fugitive Emissions and Green Completions
FUGITIVE EMISSIONS AND GREEN COMPLETIONS Significant focus on Greenhouse Gases from Tight/Shale oil and gas development Fears over tank venting and leaks Typically controlled by Vapour Recovery, Stabilization and Good Practice Flaring and Venting Well startup/cleanup CO2 vs. Methane Gr
Slide 15: Public and Community Involvement
PUBLIC AND COMMUNITY INVOLVEMENT Significant Public Concern around Tight/Shale Oil and Gas Developments Water, Noise, Air Quality, Land Use, etc Successful Developments require ongoing drilling and development for 20-40 years Good relationships with community is a must CO2 vs. Methane On
Slide 16: Technology and Integration
TECHNOLOGY AND INTEGRATION Technology Enablers Proprietary Decrease Well Costs Increase Production Reduce Footprint Technology Best in class drilling Integration of techniques Green Completions technologies - Drilling Selecting the best areas Multi well pads Automation & Well Fracture pr
Slide 17: Appendices
APPENDICES 27 JUNE 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 27 June, 2014 17
Slide 18: Development Pace
DEVELOPMENT PACE Canada: Groundbirch China: Jinqiu 0 20 km 0 20 km Shell wells Shell interest Shell pipelines 8 years in development – good geology understanding ~2 years in exploration phase of development Well developed pipeline infrastructure Densely populated & developing legal framework
Slide 19: Technology: The Future
TECHNOLOGY: THE FUTURE DECREASE COSTS INCREASE PRODUCTION REDUCE FOOTPRINT Drilling Automation Fracture Prediction Fluid Recycling Well Manufacturing Geomechanical Analysis Piped water Copyright of Royal Dutch Shell plc 27 June, 2014 19
Slide 20: Water Intensity of Various Sources of Energy
WATER INTENSITY OF VARIOUS SOURCES OF ENERGY 350 100,000 Water consumption (Litres/GJ LHV fuel) 300 10,000 250 1,000 200 Rainfed max 150 100 Rainfed average 100 Rainfed min 10 StS max 50 StS average 0 1 StS min * Irrigation & process water included ** Average is not available *** Excludes upgrading
Slide 21: Environmental Impact: Fugitive Methane
ENVIRONMENTAL IMPACT: FUGITIVE METHANE Study by the University of Texas at Austin in collaboration EPA Production Sector Methane Emissions 7,000 with the Environmental Defense Fund and 9 operators 6,000 5,000 4,000 Gg/yr Reason for the study: 3,000 Wide variation in EPA national inventories 2,000
Slide 22: Environmental Impact: Life Cycle Benefits of Gas Over Coal
ENVIRONMENTAL IMPACT: LIFE CYCLE BENEFITS OF GAS OVER COAL Critical methane leakage gas vs. coal (8%) based on a 100 year time-frame 8% 7% Estimate vs. threshold 6% 3.79% Methane leakage rates (% of 5% gross production) 4% 3% 1.4% Critical methane leakage gas vs. coal (3%) based on a 20 year time-fr
Slide 23: Community Relations
COMMUNITY RELATIONS ENGAGEMENT A priority for Shell as a responsible operator Network of Community Liaison Officers supporting Shell operations in China Proactive engagement with fence line communities Standardising processes of land and issues management Form coordination teams with partn
Slide 24: Changbei: Local Content
CHANGBEI: LOCAL CONTENT Local staffing: 2005: 60% local project staff 2013: 91% local project staff Local staff in management positions Development program for both Shell and PetroChina staff Talent supply to other Shell and PetroChina projects – a training ground Trust relationship wi
Slide 25: Community Development
COMMUNITY DEVELOPMENT Detailed impact assessments Examples of co-operation: Improved road ways Upgraded irrigation systems Shared equipment Staff helping during irrigation season Yang 201/101 satellite view Thank you banner, Fushun Irrigation provided by Shell, Zitong Copyright of Royal
Slide 26: Partnerships and Transparency
PARTNERSHIPS AND TRANSPARENCY Centre For Sustainable Shale Development Transparency Fracfocus.org Strategic Partners made up of All Shell wells in the US and Canada (Alberta and British Foundations/NGO’s/Industry Columbia) report chemical use during Fraccing on the Fracfocus website Shell suppor
Slide 27: Engagement – Resources Plays
ENGAGEMENT – RESOURCES PLAYS Centre for Sustainable Shale Development (CSSD) Environmental Defense Fund (EDF) studies recent developments Phased studies 15 performance standards Shell participated in studies on production Air + climate Further EDF studies to come on Water + waste managem
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