Shell PLC · LSE:SHEL
Shell — Shell Canada — TD Oil Sands Forum 2006
20 slides from Shell's conference presentation, Jul 6, 2006
Slide 1: TD Oil Sands Forum 2006
TD Oil Sands Forum 2006 Brian Straub – Sr. VP Oil Sands July 6, 2006
Slide 2: Cautionary Note
OVERVIEW OVERVIEW Cautionary Note This document contains “forward-looking statements” based upon current expectations, estimates and projections of future production, project start-up and future capital spending. This information also includes certain measures that do not have any standardized meani
Slide 3: Corporate Structure
OVERVIEW OVERVIEW Corporate Structure Capital Employed: $8.8 Billion ( At March 31, 2006 ) Exploration & Production Oil Sands Oil Products
Slide 4: Strategic Growth Opportunities
OVERVIEW OVERVIEW Strategic Growth Opportunities Beaufort • Athabasca, Peace River & Cold Lake Oil Sands Mackenzie Delta • Mackenzie Delta/Beaufort gas • Unconventional gas West Coast Offshore • East/West Coast Peace Orphan River Athabasca Basin Cold Lake Unconventional Gas
Slide 5: World Class Resource in Alberta
OIL OIL SANDS SANDS World Class Resource in Alberta Oil Sands Resource Development ( billions of barrels ) DEVELOPED UNDEVELOPED 1,500 1370 Athabasca Peace River 1,200 B.C. Fort McMurray 900 Alberta Cold Lake 600 Edmonton Sask. 300 200 Calgary 130 0 Peace River Cold Lake Athabasca % Developed 0.2% 2
Slide 6: Athabasca Oil Sands Project (AOSP)
OIL OIL SANDS SANDS Athabasca Oil Sands Project (AOSP) Muskeg Muskeg River River Mine Mine Corridor Corridor Pipeline Pipeline B.C. Peace River Alberta Edmonton Sask. Calgary Scotford Scotford Refinery Refinery Scotford Scotford Upgrader Upgrader
Slide 7: AOSP - Production (100%)
OIL OIL SANDS SANDS AOSP - Production (100%) Bitumen Production ( 000's bpd ) 200 Design Rate 155,000 bpd 150 100 50 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006
Slide 8: AOSP – Shell Earnings and ROACE
OIL OIL SANDS SANDS AOSP – Shell Earnings and ROACE Earnings ROACE ( $ millions ) (%) 40 EARNINGS ROACE 790 750 30 29.4 20 250 10 0 -250 -10 2003 2004 2005
Slide 9: AOSP – Technology Comparisons
OIL OIL SANDS SANDS AOSP – Technology Comparisons Syncrude / Suncor AOSP Existing Mining • Truck & Shovel ü Bitumen Extraction • Slurry Pipeline • Gravity Separation ü • Centrifuges • Counterflow Solvent Bitumen Cleanup Process … Low Temp Bitumen Pipeline N/A • Diluted Bitumen • Coking & LC Fining •
Slide 10: AOSP - Shell’s Product Flows
OIL OIL SANDS SANDS AOSP - Shell’s Product Flows …highly integrated with Scotford Refinery Scotford Refinery Diluent Return Returns VGO Light Bitumen Cuts + Diluent Upgrader Bottoms H2 Shell Light Blendstocks Blender Shell Heavy
Slide 11: AOSP - Shell’s Unit Costs
OIL OIL SANDS SANDS AOSP - Shell’s Unit Costs Cash Costs* ( $ per barrel ) 40 NATURAL GAS Cash Cost Guidance $15-$22 EXCLUDING NG ($30-$70 WTI & $5-$9 H.Hub) 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006 * including overburden removal, corporate overhead, Corridor pipeline, LT Incentive Plan
Slide 12: AOSP - Growth Opportunities
OIL OIL SANDS SANDS AOSP - Growth Opportunities 6.5+ Billion Barrels Recoverable (excluding 69,000 acres acquired in 2005) • 1.7 Billion Barrels currently booked • 1 Billion Barrels added with Expansion #1 Muskeg • Future development River - 3.8+ Billion Barrels Mine - plus resources from lands acqu
Slide 13: AOSP - Growth Strategy
OIL OIL SANDS SANDS AOSP - Growth Strategy Delivering on the initial investment… planning to grow Production 500,000+ Barrels per Day 155,000 • 100,000 bpd expansion blocks • Carbon copy design Barrels per Day • Continuous construction • Production Optimization Today +5 +10 Years
Slide 14: Peace River
OIL OIL SANDS SANDS Peace River Woodland Cree First Nation Reserve Existing Development Area B.C. Peace Peace River River Peace River Peace River Complex Peace River Alberta Edmonton • 7 Billion barrels in-place • Current production 8-10,000 bpd Sask. • 25 years of operating experience Calgary • Eva
Slide 15: Peace River - Recovery Technology
OIL OIL SANDS SANDS Peace River - Recovery Technology 1979-1985 1993-1997 1998-Present Heated Oil & Condensate Flow to Production Well m 500 Steam Injection Production Well Steam Injection via Basal Water Zone Pressure SAGD Cyclic Cycle Steam Steam Drive Stimulation
Slide 16: Peace River - Recovery Technology
OIL OIL SANDS SANDS Peace River - Recovery Technology Cumulative Oil-Steam Ratio Bitumen Production ( cubic metres per ton ) ( 000's bpd ) 0.6 12 SAGD WELLS CSS WELLS 0.5 CSS WELLS 0.4 9 0.3 6 0.2 STEAM DRIVE SAGD WELLS 3 0.1 STEAM DRIVE 0.0 0 0 10 20 30 40 50 60 70 80 90 85 90 95 00 Months Since St
Slide 17: BlackRock Asset Locations - Integration
BlackRock Asset Locations - Integration Shell BlackRock B.C. Peace River Woodenhouse Woodenhouse Seal Seal Grande Prairie Chipmunk Chipmunk Alberta PEACE RIVER REGION Hilda Hilda Lake Lake • Integration of operations, marketing, Edmonton Lloydminster Lloydminster extraction & growth plans • Potentia
Slide 18: In Situ - Growth Strategy
OIL OIL SANDS SANDS In Situ - Growth Strategy Production ( 000's bpd ) 160 Growth Plans to 140,000 bpd 140 UPGRADING 120 PR PHASE 2 100 80 PR CARMON CREEK BLACKROCK 60 40 20 PR COLD PR BASE 0 Exit 06 +5 +10
Slide 19: Oil Sands – Looking Ahead
OIL OIL SANDS SANDS Oil Sands – Looking Ahead • Mining - Athabasca/Fort Saskatchewan - Exit 2006 at >155,000 bpd (design) - Growth plans beyond 500,000 bpd • In Situ - Peace River - Exit 2006 at 12,000 bpd - Growth plans to 100,000 bpd • In Situ - BlackRock Peace Athabasca - Exit 2006 at >18,000 bpd
Slide 20: A brand to be admired, and a company that’s going places
A brand to be admired, and a company that’s going places