Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — CS Vail Energy Conference 2015
20 slides from Shell's conference presentation, Feb 24, 2015
Slide 1: CS Vail Energy Conference: Balancing Growth & Returns
CS VAIL ENERGY CONFERENCE BALANCING GROWTH & RETURNS 24 FEBRUARY 2015 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 24 February, 2015 1
Slide 2: Marvin Odum, Upstream Americas Director
MARVIN ODUM UPSTREAM AMERICAS DIRECTOR ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 24 February, 2015 2
Slide 3: 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 4: Focus on HSSE
FOCUS ON HSSE 2014 UPDATE Goal Zero on safety Spills - operational Injuries – TRCF/million working hours million working hours Volume in thousand tonnes 10 4 800 5 2 600 0 400 0 '04 '06 '08 '10 '12 '14 '04 '06 '08 '10 '12 '14E TRCF Working hours (RHS) Energy intensity – refineries Process safety Ene
Slide 5: Executing a Consistent, Long-Term Strategy
EXECUTING A CONSISTENT, LONG-TERM STRATEGY Unrelenting focus on HSSE Total shareholder returns growth – 10 years Index 1/1/2005 =100 Technology, integration and scale 200 Disciplined capital investment by strategic theme 150 Growth in cash flow through cycle Competitive shareholder returns
Slide 6: Energy Transitions
ENERGY TRANSITIONS Long-term energy supply mix 2050 outlook Million boe per day Population increases from 7 to 9 billion 400 +50% Enabled by cheap and reliable energy 300 +50% Realities 200 Requirement to mitigate climate change Oil supply -70% by 2030 without new investment 100 Key role o
Slide 7: Oil Market + Shell Response
OIL MARKET + SHELL RESPONSE Oil supply Oil market downturn Million barrels of oil per day 100 Entering 2015 with low oil prices Requirement for $500 billion industry investment 80 in upstream oil during 2014-20 Under-spending amplifies price spike risks 60 40 Shell response Long-term $70 - $
Slide 8: 2014 Delivery: Financial Performance
FINANCIAL PERFORMANCE 2014 DELIVERY Earnings + ROACE Cash flow $ billion % $ billion $ billion 30 15 50 25 40 20 20 10 30 15 10 5 20 10 10 5 0 0 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 -10 -5 Upstream Corporate/Other CFFO CFFI Free cash flow (RHS) Downstream ROACE (RHS) Dividend, buyba
Slide 9: Balancing Growth and Returns
2014 DELIVERY BALANCING GROWTH AND RETURNS Improve our financial performance CCS earnings $22.6 billion; CFFO $45.0 billion Dividend growth + buyback Restructuring in Oil Products + North America resources plays Enhance our capital efficiency Moderated spending + growth Improved free cash
Slide 10: Priorities 2015+
PRIORITIES 2015+ Competitive financial Capital efficiency Project delivery performance Returns and cash flow Choices on new options Continued ramp-up of 2014 start-ups Competitive returns for Supply chain management shareholders 2015 transition year into Managing affordability + 2016/1
Slide 11: Investment Priorities + Performance
INVESTMENT PRIORITIES + PERFORMANCE Engines (Downstream, Upstream engine) CFFO in billion $ Free cash flow businesses 15 Maintain competitiveness Integrated gas Asset integrity + selective growth Downstream engine 10 Growth priority (Integrated Gas, deep water) Upstream engine Global leaders
Slide 12: Upstream Americas Portfolio
UPSTREAM AMERICAS PORTFOLIO Resources Resources plays Western Canada Deep-water 8.8 billion boe dry gas + LRS Heavy oil AOSP + in-situ Gas monetization options LNG Integration potential Canada Major undeveloped resources Appalachia Eastern Resources plays dry gas Canada Deep-water Heavy oil Gas-to-c
Slide 13: Restructuring Resources Plays Portfolio
COMPETITIVE FINANCIAL PERFORMANCE RESTRUCTURING RESOURCES PLAYS PORTFOLIO W. Canada gas Russia Germany Ukraine ` Turkey Changbei W. Canada LRS Algeria Changbei 2 Appalachia Tunisia Oman Sichuan Colombia Permian Arrow CBM Argentina Neuquen Gas Liquids Rich On-stream E&A 2014: North America portfoli
Slide 14: Deep-water Gulf of Mexico
DEEP-WATER GULF OF MEXICO PROJECT FLOW Appomattox Kaikias >150 kboe/d potential Oil discovery; appraisal >700 million boe resources well spudded Shell ~80% (operator) Shell 100% (operator) Ram Powell Vito ~100 kboe/d potential Gettysburg >300 million boe resources Oil discovery, Mars
Slide 15: North America LNG
NORTH AMERICA LNG PROGRESSING TO FID LNG Canada Elba LNG 2 x 6.5 mtpa first phase Two phased liquefaction project with up to 2.5 25-year export license for 24 mtpa in place mtpa capacity Joint venture 49% Shell + 51% Kinder Morgan Joint venture agreement signed Shell will be single LNG o
Slide 16: Shell Arctic & Near Arctic
SHELL ARCTIC & NEAR ARCTIC SAKHALIN CHUKCHI UNITED STATES Alaska, Chukchi Russia, Sakhalin NIGLINTGAK BEAUFORT CANADA NORTH POLE RUSSIA SALYM BAFFIN BAY KANUMAS Greenland, Baffin Bay GREENLAND KAZAKHSTAN Russia, Salym KASHAGAN NORWAY BARENTS NORWAY ORMEN LANGE Norway, Ormen Lange Kazakhstan, Kashaga
Slide 17: Investment Priorities
CAPITAL EFFICIENCY INVESTMENT PRIORITIES Investment themes Organic capital investment 100% 100% Conventional 10% exploration Longer term: 25% Pre-FID large project options 50% Post-FID large projects 50% Growth priorities: 40% 50% Short-cycle projects1 40% Engines: 35% Base 0% 0% 2015 2015 organic c
Slide 18: Cash Performance + Pay-out
CASH PERFORMANCE + PAY-OUT Cash flow Dividend track record $ billion $ billion 2012-2014 2014 12 140 50 8 70 25 4 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Cash flow from operations Cash flow from investments1 Pay-out Dividends announced 1 Includes MLP proceeds Gearing and pay-out $ billion
Slide 19: Priorities 2015+
PRIORITIES 2015+ Competitive financial Capital efficiency Project delivery performance Returns and cash flow Choices on new options Continued ramp-up of 2014 start-ups Competitive returns for Supply chain management shareholders 2015 transition year into Managing affordability + 2016/1
Slide 20: Questions & Answers
QUESTIONS & ANSWERS Copyright of Royal Dutch Shell plc 24 February, 2015 20