Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Credit Suisse 2010 Energy Summit
18 slides from Shell's conference presentation, Feb 5, 2010
Slide 1: Building New Heartlands, Sharpening Focus
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS SHARPENING FOCUS MARVIN ODUM DIRECTOR UPSTREAM AMERICAS Credit Suisse 2010 Energy Summit FEBRUARY 5, 2010
Slide 2: Definitions and Cautionary Note
DEFINITIONS AND CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves and SEC proven mining reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil
Slide 3: Summary
SUMMARY CHALLENGING MARKET CONDITIONS IN 2009 • Q4 2009 CCS earnings $2.8 billion • Prudent approach to recession SHARPENING OUR FOCUS ON DELIVERY AND AFFORDABILITY • New organization increases accountability + focus; implemented end-2009 • Reducing underlying operating costs $2 billion 2008-09; $1
Slide 4: Successful Implementation of Transition 2009
SUCCESSFUL IMPLEMENTATION OF TRANSITION 2009 TOP DOWN REORGANIZATION NEW PROJECTS + TECHNOLOGY DIVISION Previous structure……. ……new top level structure 1st July 2009 E&P UPSTREAM Contracting INTERNATIONAL & GAS & POWER Procurement UPSTREAM AMERICAS OIL SANDS Technology Innovation Project Solutions &
Slide 5: Cost Focus Embedded in Shell Strategy
COST FOCUS EMBEDDED IN SHELL STRATEGY SUPPLY CHAIN + SHELL COSTS 2009 ACHIEVEMENTS • Transition 2009 programme complete • 5,000 staff reduction announced • $2 billion cost savings CONTINUING MOMENTUM IN 2010 • 1,000 staff reduction • $1 billion cost savings potential 2010 Upstream supply chain Shell
Slide 6: 2009 Exploration & Appraisal
2009 EXPLORATION & APPRAISAL NORWAY: GRO DISCOVERY - LEIV EIRIKSSON RIG NORTH AMERICA TIGHT GAS GULF OF MEXICO OIL & GAS AUSTRALIA GAS USA: CARDAMOM DEEP NEAR FIELD DISCOVERY ACREAGE ACCESS DISCOVERY APPRAISAL SUCCESS 6
Slide 7: Mars-Ursa Basin Potential
MARS-URSA BASIN POTENTIAL US GoM – WEST BOREAS (SHELL 100%) NEW POTENTIAL IN MARS-URSA BASIN • 2009 West Boreas discovery • Appraising 2009 Vito discovery • Inventory of nearby prospects to be drilled • Feasibility study for Mars B TLP Vito West Boreas • Secondary recovery Mars field • ~100 kboe/d p
Slide 8: Australia Opportunities
AUSTRALIA OPPORTUNITIES AUSTRALIA – PRELUDE (SHELL 100%) SHELL AUSTRALIA OFFSHORE LNG POTENTIAL Mtpa CRUX LIBRA Others Prelude PRELUDE, ECHUCA SHOALS Gorgon T1-3 CONCERTO, TOCATTA Pluto T1 (Woodside) NWS T1-5 2008-09 2010-11 ~2020 ONSTREAM CONSTRUCTION DESIGN OPTIONS • 2008 Prelude discovery >2 Tcf
Slide 9: Key Project Start-ups
KEY PROJECT START-UPS KEY POST-FID PROJECTS IMPACT OF KEY START-UPS Kboe/d Gjoa 1,200 AOSP-1 Corrib Halfdan Sakhalin II NA Tight gas Kashagan Schoonebeek Port Arthur 600 Pearl GTL Perdido Caesar Qatargas 4 Tonga Nigeria Singapore Chemicals Oman Gumusut-Kakap 0 Gorgo 2008 2009-10 2011-12 2013+ BC-10
Slide 10: Gulf of Mexico: Perdido
GULF OF MEXICO: PERDIDO SPAR AND TOPSIDE INSTALLED LARGE AND COMPLEX SUBSEA TECHNOLOGY 300m 267m 220m • Shell 35% (operator) 300m • World’s deepest vertical access spar • ~2,380 metres water depth • Fields: Great White, Tobago, Silvertip 10
Slide 11: North America Tight Gas Potential
NORTH AMERICA TIGHT GAS POTENTIAL TIGHT GAS PORTFOLIO RESERVOIR CHARACTERIZATION NEW POSITIONS SINCE 2007 Groundbirch Porous reservoir Tight gas reservoir Alberta Deep Basin Pinedale TIGHT GAS Haynesville FOCUS BASINS South Texas IMPROVING DRILLING PERFORMANCE PINEDALE PRODUCTION AND POTENTIAL # Day
Slide 12: Haynesville Update
HAYNESVILLE UPDATE PLAY AREA FAST TRANSFER OF WELL DELIVERY CAPABILITY Mary Long 4-1H Drilling Performance (Days) Completion Operations (Days) G McLemore 7-1H 20 Robertson 23-1H CSJ Minerals 1-1H Red River 10 Blackstone 9-1H DeSoto Sabine 0 2009 Well # 2009 Well # DELIVERING PRODUCTION Texas Louisia
Slide 13: Canada Tight Gas Update
CANADA TIGHT GAS UPDATE DUVERNAY (MONTNEY & DEEP BASIN PLAYS) FAST TRANSFER OF WELL DELIVERY CAPABILITY # Days Montney Play Alberta Deep Basin Shell legacy 2008 Duvernay 2008 Shell acquisition GROUNDBIRCH DEEP BASIN acreage COMPLETION TIME acquisition DRILLING TIME DELIVERING PRODUCTION Shell Net Pr
Slide 14: Oil Sands Expansion Outlook & Economics
OIL SANDS EXPANSION OUTLOOK & ECONOMICS PRODUCTION CAPACITY & POTENTIAL AOSP: Muskeg River Mine and Scotford Upgrader Thousand barrels of oil equivalent per day – Shell share 300 AOSP AOSP Expansions AOSP Debottlenecking Debottlenecking 200 AOSP 100 AOSP Expansion 1 0 2008-09 2010-11 2020 On stream
Slide 15: Gorgon Project Launched
GORGON PROJECT LAUNCHED GORGON LNG DEVELOPMENT: BARROW ISLAND • Shell 25% • 15 MTPA LNG Capacity • Peak production 450 kboe/d • CO2 Sequestration Source: Chevron 15
Slide 16: Leadership in Global LNG
LEADERSHIP IN GLOBAL LNG 15 NEW LNG TRAINS IN LAST DECADE LNG GLOBAL PORTFOLIO LNG CAPACITY GROWTH Mtpa QG-4 Sakhalin Pluto Gorgon NWS MALAYSIA OMAN QATARGAS 4 (Woodside) BRUNEI NIGERIA SAKHALIN PLUTO (WOODSIDE) LNG - CONSTRUCTION REGAS POSITION - CONSTRUCTION LNG - OPERATION REGAS POSITION - OPERAT
Slide 17: Summary
SUMMARY CHALLENGING MARKET CONDITIONS IN 2009 • Q4 2009 CCS earnings $2.8 billion • Prudent approach to recession SHARPENING OUR FOCUS ON DELIVERY AND AFFORDABILITY • New organization increases accountability + focus; implemented end-2009 • Reducing underlying operating costs $2 billion 2008-09; $1
Slide 18: Royal Dutch Shell plc, Building New Heartlands
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS SHARPENING FOCUS MARVIN ODUM DIRECTOR UPSTREAM AMERICAS Credit Suisse 2010 Energy Summit FEBRUARY 5, 2010