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Shell — Royal Dutch Shell — Citi Climate Conference 2011

21 slides from Shell's conference presentation, Jun 6, 2011

  1. Slide 1: Biofuels Outlook

    ROYAL DUTCH SHELL PLC BIOFUELS OUTLOOK LUIS SCOFFONE CITI CLIMATE CONFERENCE LONDON JUNE 6, 2011 1 Copyright of Royal Dutch Shell plc 06/06/2011

  2. Slide 2: Definitions and Cautionary Note

    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 i

  3. Slide 3: Macro Environment

    ROYAL DUTCH SHELL MACRO ENVIRONMENT 3 Copyright of Royal Dutch Shell plc 06/06/2011

  4. Slide 4: Energy Scenarios

    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 (primar

  5. Slide 5: Energy Outlook

    ENERGY OUTLOOK GLOBAL ENERGY MIX Mln Boe/d Industry outlook 400  Hydrocarbons dominate outlook  Growth required in all sectors of energy mix 300  Energy policy + sustained investment 200 Shell  Crude oil & oil products 100  Natural gas & LNG  Biofuels, wind, carbon capture + storage 0 1980 199

  6. Slide 6: Shell: Strategy & Capital Allocation

    SHELL: STRATEGY & CAPITAL ALLOCATION STRATEGY CAPITAL INVESTMENT $ Bln Upstream 150  Profitable growth; price upside  >80% of total capital spending 100% SOUR HEAVY OIL & EOR  Sustained exploration investment TIGHT GAS 100 EXPLORATION Downstream DEEPWATER UP-  Stable capital employed STREAM 50%

  7. Slide 7: Shell & CO2

    SHELL & CO2 NATURAL GAS BIOFUELS QatarGas 4: First Cargo arriving at Hazira terminal Raizen: Sugar cane harvesting CARBON CAPTURE AND STORAGE ENERGY EFFICIENCY Mongstad: CCS Project Shell Fuelsave: 1 liter less per tank 7 Copyright of Royal Dutch Shell plc 06/06/2011

  8. Slide 8: Transportation Fuels

    ROYAL DUTCH SHELL TRANSPORTATION FUELS 8 Copyright of Royal Dutch Shell plc 06/06/2011

  9. Slide 9: Technology Diffusion

    TECHNOLOGY DIFFUSION TIME TO MATERIALITY TJ/Year  It takes 30 years to span 1.0E+09 the 1000-fold growth to 1.0E+08 get from „test‟ scale to materiality (1-2% of total 1.0E+07 primary energy supply) "Materiality"  Thereafter deployment 1.0E+06 rises linearly to ultimate 1.0E+05 share in the mix 

  10. Slide 10: Transport Demand Growth

    TRANSPORT DEMAND GROWTH WORLD PASSENGER TRANSPORT ROAD WORLD FREIGHT TRANSPORT ROAD billion vehicle km per year billion vehicle km per year 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 0 2000 2010 2020 2030 2040 2050 2000 2010 2020 2030 2040 2050 Liquid Hydrocarbon Fuels Gaseous Hydroca

  11. Slide 11: Gasoline Compared to Alternative Fuels: Well-to-Wheel CO2 Intensities

    GASOLINE COMPARED TO ALTERNATIVE FUELS WELL-TO-WHEEL CO2 INTENSITIES CONVENTIONAL GASOLINE BASELINE CONVENTIONAL DIESEL BASELINE +34% +50% +12% -11% -16% -6% -40% -33% -84%* -82%* -89%* Source: CONCAWE/JRC/EUCAR WtW report (version 3) * Biofuels numbers do not include possible indirect land use chan

  12. Slide 12: Regulated Markets for Biofuels

    REGULATED MARKETS FOR BIOFUELS Current Mandates Target/future mandate In discussion Pilot Mandates/Area Based Mandate Revoked/Incentives Introduced 12 Copyright of Royal Dutch Shell plc 06/06/2011

  13. Slide 13: Biofuels

    ROYAL DUTCH SHELL BIOFUELS 13 Copyright of Royal Dutch Shell plc 06/06/2011

  14. Slide 14: Shell and Biofuels

    SHELL AND BIOFUELS SHELL PORTFOLIO COMMITTED TO SUSTAINABILITY SHELL GLOBAL BIOCOMPONENT SHELL‟S BIOCOMPONENT FEEDSTOCK PURCHASE Q4 2010 PURCHASES COVERED BY SUSTAINABILITY CLAUSES Corn Wheat Fully signed up Sugar Cane Other Yet to sign up Rape Seed  World's largest biofuels distributor: 9.5 billio

  15. Slide 15: Shell Advanced Biofuels Portfolio

    SHELL ADVANCED BIOFUELS PORTFOLIO  Cellusosic ethanol  Enzymes to convert  Plant sugars directly from agricultural biomass to transport to transport fuels waste fuels: Gasoline components Sugar Ethanol Cellulosic Ethanol Biomass to Gasoline Diesel components Biomass to Diesel/Jet HVO Microbes To

  16. Slide 16: Biofuels Growth

    BIOFUELS GROWTH RAÍZEN JOINT VENTURE (COSAN) Brazil: harvesting sugarcane 16 Copyright of Royal Dutch Shell plc 06/06/2011

  17. Slide 17: Raizen: Ethanol & Sugar

    BIOFUELS RAIZEN: ETHANOL & SUGAR GLOBAL ETHANOL PRODUCERS BRAZILIAN SUGARCANE PRODUCERS PRODUCTION BLN LITRES PER YEAR (ESTIMATE 2010/2011) 80 TONNES (ESTIMATE 2010/2011) MLN 6 60 5 40 4 20 0 3  Sugarcane crushing capacity: 2  ~60 mtpa from 24 mills  market leader in Brazil; market share ~10% 1 

  18. Slide 18: Raizen: Social Performance

    RAIZEN: SOCIAL PERFORMANCE COMMITMENTS COSAN INDICATORS  Cosan contributed to and is signatory to additional  41,000 employees (during peak of harvest) of commitments: which 36,000 operational, of which 27,000 agri-workers  National Commitment for the Improvement of Labor Conditions in Sugarcane

  19. Slide 19: Raizen: Environment

    RAIZEN: ENVIRONMENT REDUCING IMPACTS, DELIVERING BENEFTIS  Brazilian sugar cane ethanol best performing biofuel:  European Renewable Energy Directive assigns sugar cane ethanol with a 71% GHG savings, compared to gasoline  U.S. EPA designated Brazilian sugarcane ethanol as an advanced biofuel due

  20. Slide 20: Summary

    ROYAL DUTCH SHELL SUMMARY 20 Copyright of Royal Dutch Shell plc 06/06/2011

  21. Slide 21: Transport Sector: A Mosaic of Solutions

    TRANSPORT SECTOR: A MOSAIC OF SOLUTIONS  The mobility fuel mix will continue to diversify but hydrocarbon fuels will dominate  All transport solutions will face challenges of introduction and adoption.  A “mosaic” of solutions will be adopted in different regions of the world.  The most effectiv

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