Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Bernstein conference 2006
22 slides from Shell's conference presentation, Sep 28, 2006
Slide 1: Investing in the future of energy
1 Investing in the future of energy Linda Cook, Executive Director Gas & Power, Royal Dutch Shell plc
Slide 2: Disclaimer statement
2 Disclaimer statement 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
Slide 3: Investing in the future of energy
3 Investing in the future of energy ‘Oil workers flee as Rita advances’ BBC 22 Sept 2005 ‘Alaska shutdown hikes prices’ CNN.com August 2005 ‘Drastic shrinkage in Arctic ice’ BBC.co.uk 14 Sept 2006 ‘China Q2 growth fastest in decade’ ft.com 18 July 2006 ‘Ukraine gas row hits EU supplies’ BBC1 Jan 200
Slide 4: Diversifying energy sources
4 Diversifying energy sources Million boe/d Changing Energy Mix 400 • ‘Easy’ oil has peaked 350 • Investment focused on 300 upstream 250 Alternative Energies • Portfolio diversity Large Scale Hydro • Long life projects 200 Nuclear Gas • New technology 150 Oil • Energy efficiency Coal 100 • CO2 solut
Slide 5: Making strategic choices
5 Making strategic choices Global LNG Coal gasification, China Deepwater, Bonga Wind Sakhalin LNG Athabasca oil sands Biofuels Tight gas, Pinedale
Slide 6: Group Investment Framework
6 Group Investment Framework Strategy Context More upstream, Growth energy demand profitable downstream • Cash generation + reinvestment • Portfolio choices • Environment + sustainability Competitive Returns • Unconventionals + renewables • Competition • Downstream includes chemicals Priorities Deli
Slide 7: LNG: From unconventional to conventional
7 LNG: From unconventional to conventional 1990 2010 Europe 65 mt > 230 mt Asia (4% global gas) (~13%) Americas • Asia Pacific focus • Global business • ‘Niche’ technology, risky • Security of supply • Capital intensive • Cost competitive • Long term contracts • Increasing spot/flexibility • Oil lin
Slide 8: Shell's global LNG business
8 Shell’s global LNG business Shell in Europe Pan-European marketer Coral in North America Shell in Asia Pacific #1 LNG importer* #3 energy marketer #1 LNG supplier* 4 LNG import sites India and China access LNG supply In operation Under construction Under development Regas capacity In operation Und
Slide 9: Sakhalin II
9 Sakhalin II
Slide 10: Sakhalin II: World's largest integrated oil & gas project
10 Sakhalin II: World’s largest integrated oil & gas project Project dimensions (100%)*: • 2 new offshore oil & gas platforms • 1600 km pipelines • 340 kboe/d phase II peak production • 4 Bln boe oil and gas resources • 9.6 mtpa LNG capacity • Employment for 17,000 (70% Russian) • Construction 80% c
Slide 11: LNG: 14% aai growth target to 2009
11 LNG: 14% aai growth target to 2009 LNG Capacity (equity share*), mtpa 25 8 new trains onstream adding: 20 • 34 mtpa (100%) • 11 mtpa (Shell share) 15 Major Competitors** 10 5 0 2004 2005 2006 2007 2008 2009 * Incl. Sakhalin at 55% Shell Share and indirect interest in Woodside. ** Major IOC compet
Slide 12: Unconventionals and Alternatives
12 Unconventionals and Alternatives Oil Gas LNG EOR Oil sands GTL Coal gas Bio Wind Hydrogen Conventional Unconventionals Alternatives • Traditional oil and gas • Incl. Oil sands, GTL, Coal gas • Hydrogen • Incl. Deepwater, Tight gas • Leverage proprietary technology • Solar • Shell technology enabl
Slide 13: Unconventional oil: Canada
13 Unconventional oil: Canada World Oil reserves (top 5 countries) Billion boe 300 B.C. Oil sands mining Athabasca Peace River Oil sands in situ 250 Conventional oil Fort McMurray 200 Athabasca, oil sands mining Alberta 150 Edmonton Cold Lake 100 Calgary 50 Sask. In situ 0 Saudi Canada Iran Iraq Kuw
Slide 14: Unconventional oil: Canada
14 Unconventional oil: Canada Mining - Athabasca Shell Oil Sands Positions •>6.5 bln bbls recoverable resources1 B.C. Athabasca Peace River In situ - Peace River and Black Rock Fort McMurray • >25 bln bbls oil in place2 Alberta Edmonton Cold Lake In situ – SURE Northern Energy Ltd • Estimated >30 bl
Slide 15: Athabasca Oil Sands Project
15 Athabasca Oil Sands Project Production (100%) 550,000 b/d Expansions (100,000 b/d blocks) Base 155,000 b/d Today +5 +10 +15 Years
Slide 16: Leader in conversion technologies
16 Leader in conversion technologies Gas Syngas to Liquids (GTL, CTL, BTL) Gasoil, naptha, lubes etc. Syngas production Syngas to Chemicals Coal Syngas to Power Biomass Proprietary Shell Technologies
Slide 17: Gas to Liquids
17 Gas to Liquids GTL What is it? • Conversion of natural gas into clean liquid products for use as fuels or chemical feedstock GTL fuels trials China GTL Fuel Bintulu GTL • Most cost-efficient alternative fuel to reduce emissions1 • Well-to-wheels greenhouse gas comparable to refining2 • Contribute
Slide 18: Qatar Pearl Gas to Liquids: world scale integration
18 Qatar Pearl Gas to Liquids: world scale integration Offshore gas Integrated GTL Complex Clean liquid products North Field Ras Laffan GTL fuel blends Upstream Downstream Gas production, transport & treatment 2 train GTL plant 1.6 bcf/d wellhead gas 140kb/d clean liquid products & fuels • ~ 120kboe
Slide 19: Clean Coal Technology for the future
19 Clean Coal Technology for the future Dongting Buggenum Coal gasification Clean coal to Power Coal to liquids (IGCC) (CTL) • 15 licenses in China • Buggenum (250 MW): • Economic at today’s 12 yrs in operation oil and coal prices • Dongting JV with Sinopec • 15% lower CO2 emissions • Shenhua MOU th
Slide 20: Renewables: pursuing a competitive business
20 Renewables: pursuing a competitive business Wind farm Hydrogen filling station Shell Wind Energy Shell Solar Shell Hydrogen Owner, developer, operator New generation thin film Projects and partnerships technology (CIS) in key markets 350MW installed capacity Efficiency world record* Joint Venture
Slide 21: Leading in Bio-fuels
21 Leading in Bio-fuels Global biofuels distribution today New technologies for tomorrow Sunflower Food crops Rapeseed Soya Bio-esters Diesel Bio-component Volume Kt/year (Ethanol, FAME) 2500 2000 Residues Conversion Diesel 1500 Biomass to Liquids 1000 Enzymatic 500 Residues hydrolysis Mogas Cellulo
Slide 22: Investing in the future of energy
22 Investing in the future of energy • Challenging business environment • Successful track record • Strong financial performance • Expanding opportunity set, enabled by: - Proprietary technology - Integration • Well positioned for the future