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Shell — Royal Dutch Shell — Corporate Update (December 2012)
32 slides from Shell's corporate update, Dec 4, 2012
Slide 1: Royal Dutch Shell plc Alaska Update
ROYAL DUTCH SHELL PLC ALASKA UPDATE LONDON/THE HAGUE DECEMBER 4/5th, 2012 Copyright of Royal Dutch Shell plc 4 December, 2012 1
Slide 2: Alaska - Marvin Odum
ROYAL DUTCH SHELL PLC ALASKA MARVIN ODUM DIRECTOR UPSTREAM AMERICAS Copyright of Royal Dutch Shell plc 4 December, 2012 2
Slide 3: 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
Slide 4: Global Energy Outlook
GLOBAL ENERGY OUTLOOK DEMAND GROWTH Energy demand outlook in million boe/d 9 billion people in 2050 400 Energy demand +60% 2010 – 2050 Solar, Wind and Biofuel only 1% of energy mix today; growing to 10-15% 300 by 2050 Hydrocarbons continue to be some 70% of energy mix in 2050 200 100 ALL FOR
Slide 5: Arctic Activity: Industry
ARCTIC ACTIVITY: INDUSTRY SIGNIFICANT DRILLING ACTIVITY: 1960s TO PRESENT Significant drilling offshore >250 wells offshore/ Canada archipelago Arctic North Archipelago America US Beaufort 174 ~500 wells onshore Prudhoe Chukchi 5 Bay area 30 Drilling in Norwegian and Russian arctic North Slope
Slide 6: Resource Potential
RESOURCE POTENTIAL SHELL ARCTIC POSITIONS Arctic SAKHALIN 22% of the undiscovered, technically recoverable resources in the world 1 UNITED STATES CHUKCHI Alaska NIGLINTGAK ~30 billion bbls of oil and 221 tcf of BEAUFORT natural gas 1 CANADA NORTH POLE Alaska Outer Continental Shelf RUSSIA SALY
Slide 7: Alaska Production History
ALASKA PRODUCTION HISTORY 1957 –Swanson River 1977 - Trans- 1989-1991 Shell 2001 – BP Northstar oil field, Kenai Alaska Pipeline /Chevron explore Chukchi field, Beaufort Sea, Peninsula completed sea and drill 5 wells becomes operational 1963 – Shell drills first 1981 - Kuparuk oil 2000 – Conoco Alpi
Slide 8: Alaska Offshore Developments
ALASKA OFFSHORE DEVELOPMENTS BP Northstar, Beaufort Sea, 2001 BP Endicott, Beaufort Sea, 1987 BP Endicott, Beaufort Sea, 1987 OFFSHORE EXPLORATION + PRODUCTION UNDERWAY ARTIFICIAL ISLAND DEVELOPMENTS ENI Nikaitchuq, Beaufort Sea, 2011 Copyright of Royal Dutch Shell plc 4 December, 2012 8
Slide 9: Alaska Drilling: Well Control
ALASKA DRILLING: WELL CONTROL Consequences Hazard Control & Response & Barriers Incident Recovery Minimize Mitigate likelihood consequences CONTROL & BARRIERS: RESPONSE & RECOVERY Known pressures – previous drilling Cap & Contain system Drilling mud Arctic containment dome Blow out prevent
Slide 10: Multiple Barriers - Alaska
MULTIPLE BARRIERS -ALASKA 4 BARRIERS DRILLING FLUID BLOW OUT PREVENTER 1 2 3 4 2 CAPPING STACK ARCTIC CONTAINMENT SYSTEM 3 4 1 Copyright of Royal Dutch Shell plc 4 December, 2012 10
Slide 11: Oil Spill Response
OIL SPILL RESPONSE www.shell.us/Alaska Oil spill response animation Copyright of Royal Dutch Shell plc 4 December, 2012 11
Slide 12: Alaska - Dave Lawrence
ROYAL DUTCH SHELL PLC ALASKA DAVE LAWRENCE EXECUTIVE VICE PRESIDENT EXPLORATION/COMMERCIAL UPSTREAM AMERICAS Copyright of Royal Dutch Shell plc 4 December, 2012 12
Slide 13: Shell Arctic Overview
SHELL ARCTIC OVERVIEW 2012 DRILLING IN CHUKCHI AND BEAUFORT 2012 ACTIVITIES COMPLETED SAFELY Copyright of Royal Dutch Shell plc 4 December, 2012 13
Slide 14: Shell Investment in Alaska
SHELL INVESTMENT IN ALASKA ALASKA SPEND 2006 - 2012 ~$5 BILLION CAP & CONTAIN SUPPORT VESSELS First of its kind custom built More than 20 support vessels in Arctic Containment System place Pre-built capping stack DRILLING ENGAGEMENT Capitalised Expensed Leases Exploration expense Drilling & Su
Slide 15: Chukchi + Beaufort
CHUKCHI + BEAUFORT Chukchi Beaufort Barrow Wainwright Kaktovik Point Lay Deadhorse Kuparuk Point Hope Prudhoe Bay Trans Alaska Pipeline Kivalina Shell Anadarko Total Conoco Repsol Others Exxon Chevron BP ENI Statoil Pipelines COMPETITIVE SHELL ACREAGE POSITION Copyright of Royal Dutch Shell plc 4 De
Slide 16: Alaska Drilling Season
ALASKA DRILLING SEASON Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Typical Ice Year Beaufort Ability to drill in hydrocarbon zone Whaling break Ability to drill top Chukchi hole only Permit LIMITED DRILLING WINDOW Short ice free season Beaufort whaling shutdown Chukchi blackout period fro
Slide 17: 2012 Mobilization
2012 MOBILIZATION AFFINITY ARCTIC CHALLENGER/CORBIN FOSS Fuel supply & CSR tanker Containment system barge & tug NOBLE DISCOVERY Drill ship FENNICA Primary Ice management KULLUK Drilling rig TOR VIKING Anchor handling & secondary LAUREN FOSS/TUUQ ice management Supply & waste storage NANUQ ENDEAVOR/
Slide 18: 2012 Performance
2012 PERFORMANCE CHALLENGES Heaviest ice year for a decade Kulluk could not start drilling before the whaling season began Permits uncertainty around Arctic Containment System Containment dome damaged during testing Whaling hunt prolonged due to bad weather and funeral Discoverer is re-sup
Slide 19: Alaska - Marvin Odum
ROYAL DUTCH SHELL PLC ALASKA MARVIN ODUM DIRECTOR UPSTREAM AMERICAS Copyright of Royal Dutch Shell plc 4 December, 2012 19
Slide 20: Stakeholder Engagement + Permitting
STAKEHOLDER ENGAGEMENT + PERMITTING > 450 STAKEHOLDER ENGAGEMENTS MULTIPLE PERMITTING BODIES + JURISDICTIONS Kaktovik Barrow Alaska Dept. of Environmental Conservation Wainwright Nuiqsut Point Lay North Slope Borough Point Hope Alaska Eskimo Whaling Commission Kivalina # of engagements < 10
Slide 21: Engagement + Commitment
ENGAGEMENT + COMMITMENT 6 YEARS OF ENGAGEMENTS & OUTREACH Strategic stakeholder initiatives to 3-D mapping: North Slope to Washington, DC North Slope Residents: Listening, adjusting, cooperating: respect for dialogue CAA, NSB Science agreement, jobs/contracting Stakeholder engagement (450+ v
Slide 22: Potential Development
POTENTIAL DEVELOPMENT YEAR ROUND ACTIVITY ARCTIC PIPELINE ENVIRONMENT Development concept Ice gouge LONG TERM DEVELOPMENT OPTIONS IN CASE OF DISCOVERY Strudel scour Copyright of Royal Dutch Shell plc 4 December, 2012 22
Slide 23: Shell in Arctic Conditions
SHELL IN ARCTIC CONDITIONS WORLDWIDE EXPERIENCE ALASKA DRILLING + DEVELOPMENT HISTORY Kashagan (2000s) Cook Inlet (1960s – 1990s) Sakhalin (2000s) Beaufort + Chukchi (1980s-1990s) Copyright of Royal Dutch Shell plc 4 December, 2012 23
Slide 24: Vision for Long Term Success
VISION FOR LONG TERM SUCCESS SUSTAINED LICENSE TO OPERATE Exploration + development success Alignment with stakeholders National energy policy INCREASED UTILIZATION OF DRILLING DAYS Equipment readiness Expand fleet capability Realize learning curve on drilling efficiency ENHANCE VENTURE
Slide 25: Q&A
ROYAL DUTCH SHELL PLC ALASKA Q&A Copyright of Royal Dutch Shell plc 4 December, 2012 25
Slide 26: Appendix
ROYAL DUTCH SHELL PLC ALASKA APPENDIX Copyright of Royal Dutch Shell plc 4 December, 2012 26
Slide 27: Chukchi Sea
CHUKCHI SEA Shell Popcorn, 1990 Shell Shell Crackerjack 1991 Burger-A, 2012 Chevron Diamond, 1991 Shell Burger-1, 1990 Barrow Shell Klondike, 1989 Wainwright Shell Conoco Repsol ENI Statoil Well Location EXPLORATION WELLS 1989-1991; BURGER GAS DISCOVERY KNOWN PRESSURES AND TEMPERATURES KEY ACTIVITY:
Slide 28: Beaufort Sea
BEAUFORT SEA Shell Anadarko Total Conoco Repsol Others Well Location Exxon Chevron BP ENI Statoil Pipelines ENI, Nikaitchuq Production 2011 BP, Northstar Encana Antares Production 2001 McCovey 2002 Exxon 1985 Shell BP, Endicot Production 1987 Sivulliq, 2012 Amoco (BP) Galahad 1991 Amoco (BP) Belcher
Slide 29: Alaska Fleet: Rigs
ALASKA FLEET: RIGS ARCTIC RIGS Turret moored drill ship Ice strengthened sponsons State of the art emissions control Noble Discoverer: Chukchi sea rig Moored semi-submersible rig: Shell owned Conical hull Ice class rig: designed for arctic State of the art emissions control MUTUALLY SU
Slide 30: Support Vessels
SUPPORT VESSELS ICEBREAKER + LOGISTICS OIL SPILL RESPONSE MV Aiviq: Ice class anchor handler Nanuq: Oil spill response vessel 2 primary + 2 secondary ice management vessels Multiple oil spill response vessels pre-positioned in Multiple supply vessels theatre Redundant equipment with two oper
Slide 31: Cap + Contain System
CAP + CONTAIN SYSTEM Arctic containment system Capping Stack: First response if BOPs fail Shell commissioned equipment Arctic Containment System (ACS): Consists of containment dome and production vessel Interoperable with capping stack FIRST PRE-DEPLOYED CAP & CONTAINMENT SYSTEM FOR ANY Shel
Slide 32: Alaska: Shallow Water, Low Pressure
ALASKA: SHALLOW WATER, LOW PRESSURE LOW PRESSURE AND TEMPERATURE REGIME REDUNDANCY DESIGNED INTO WELLS Copyright of Royal Dutch Shell plc 4 December, 2012 32