Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Investor Day (June 2016)
80 slides from Shell's investor day presentation, Jun 7, 2016
Slide 1: Capital markets day 2016: Re-shaping Shell
Capital markets day 2016 Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc June 7, 2016 “Let’s make the future” Royal Dutch Shell | June 7, 2016
Slide 2: Ben van Beurden, Chief Executive Officer
Ben van Beurden Chief Executive Officer Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016
Slide 3: Definitions & cautionary note
Definitions & 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 consistent with t
Slide 4: Key messages
Key messages RE-SHAPING PORTFOLIO MANAGING THE SHELL PRIORITIES DOWN-CYCLE Create a world class Cash engines Pulling levers to manage investment case financial framework today’s free cash flow Grow free cash flow per Re-set our costs Growth priorities share, higher ROCE deep water an
Slide 5: Breakout Q&A panels
Breakout Q&A Upstream + Projects & Technology panels Andrew Brown – Upstream Director Peter Sharpe – EVP Wells Andrew Brown Peter Sharpe Downstream John Abbott – Downstream Director Istvan Kapitany – EVP Retail John Abbott Istvan Kapitany Integrated Gas Maarten Wetselaar – Integrated Gas D
Slide 6: Substantial + long lasting shifts in energy
Industry context Global population Growth in oil & gas demand Energy system in transition Substantial + long lasting World needs shifts in energy more energy; less CO2 landscape 2000 2050 From 7 to 9 billion by 2050 Global energy demand to 75% will live in cities double between 2000 & 2050 Customer
Slide 7: "2 degree world"
“2 degree Global energy mix IEA ‘450’ scenario world” Global energy demand, million boe per day 300 Other renewables Oil 32% Nuclear Coal 29% Bio-energy Hydro Gas 21% 200 13.7 9.4 Coal btoe btoe Bio-energy 10% Energy Primary Nuclear 4% energy consumption Gas 100 supply Renewables 4% Losses + Oil 4.3
Slide 8: "Let's make the future"
Strategy “Let’s make the future” Strategic Operational Focus portfolio on Reset cost and capital Shell ambition: resilient positions spending Create a World-class investment case world-class Relevant in our industry + Invest in advantaged investment case First class execution growing value share
Slide 9: BG deal delivery
Re-shape Shell BG deal delivery Shell reset Oil price uplift Synergies: $4.5 billion 2018 >$10 billion Asset value ahead of expectation Considerable upside potential: Oil price recovery Shell reset Consideration Today Pre-completion view paid Valuation based on forward curves / consensus @
Slide 10: Significant changes delivered
Track record $35 billion 8% $35 billion $22 billion 2013-15 >> Significant Free cash flow ROACE Dividend & buybacks Divestments changes delivered Capital employed in $ billion, end 2013 / Q1 2016 2013 Today 300 Corporate BG acquisition: Corporate Deep water + LNG growth accelerated Integrated Gas
Slide 11: Driving strategy in multiple time horizons
Re-shape Shell Cash engines: Growth priorities: Future opportunities: Driving strategy today 2016+ 2020+ in multiple time Funds dividends + balance sheet Cash engines 2020+ Material value + upside horizons Affordable growth in Competitive + resilient Path to profitability advantaged positions Strong
Slide 12: Cash flow performance
Capital Employed Cash flow Free cash flow + ROACE Re-shape Shell Cash Engines $23 billion Cash flow $140 billion 12 % ROACE performance $87 billion Net debt movement 2013-15 & other $4 billion Interest & other $4 billion Growth Priorities $24 billion $0 billion 11 % Free $39 billion cash flow Cash d
Slide 13: Capital allocation
Capital investment Re-shape Shell $ billion 2016 2017-18 Capital $ billion 50 Oil products 3 3-4 allocation -35% Conventional 5 5-6 oil + gas Cash engines Integrated gas 6 4-5 30 Oil sands mining <1 <1 25 25 Deep water 8 6-7 Growth priorities Chemicals 3 3-4 Shales 2 2-3 Future Reducing capital in
Slide 14: Cash engines
Re-shape Shell Conventional oil + gas Cash engines High grade portfolio Exploration to maintain running room Integrated Gas Moderate capacity growth rate Prioritise for cash delivery Oil Products Strengthen the retained core Selective marketing growth Oil sands mining Improve macro res
Slide 15: Integrated Gas from growth priority to cash engine
Re-shape Shell Liquefaction capacity Integrated Gas Period-end in million tonnes per annum from growth Sakhalin 45 2018 30 priority to cash 15 Sabine Pass engine QG-4 0 2000 2005 2010 2015 Nigeria Oman Brunei Equatorial Atlantic LNG Guinea Malaysia LNG liquefaction volumes LNG Peru Million tonnes pe
Slide 16: Growth priorities
Re-shape Shell Deep water Growth priorities Growth in advantaged geology Brazil + GOM in focus Multi-billion barrels potential Chemicals Advantaged feedstock + growth markets USA + China growth Royal Dutch Shell | June 7, 2016 16
Slide 17: Deliver profitable growth
Re-shape Shell Chemicals capacity Deep water production Deliver Million tonnes per annum, ethylene Thousand boe per day profitable 8 1000 growth 800 6 600 4 400 2 200 0 0 2015 2020 2015 2020 On-stream Under construction On-stream Under construction FEED Advantaged feed stocks + Shell technology
Slide 18: Future opportunities
Re-shape Shell Shales Future ~12 billion barrels resources + potential opportunities Mature to ‘growth priority’ New energies Energy transition themes Explore + invest for longer term Royal Dutch Shell | June 7, 2016 18
Slide 19: New energies
Future opportunities New energies Investment context New energies Mobility Renewables transition growth New fuels Digital Energy Increasing platforms Transition electrification Integrated Connected energy customer solutions Disruptive Greater business customer models choice Hydrogen & biofuels W
Slide 20: Expectation: end of decade
Re-shape Shell 2013-15 ~$90 2019-21 ~$60 Expectation: Capital Free ROACE Capital Free ROACE employed cash flow employed cash flow end of decade ($ bln end ‘15) ($ bln p.a) (%) ($ bln) ($ bln p.a.) (%) Oil products 5 12 >5 ~15 Conventional oil + gas -1 13 ~5 ~10 CASH ENGINES Integrated gas 4 13 >5 ~1
Slide 21: Simon Henry, Chief Financial Officer
Simon Henry Chief Financial Officer Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016
Slide 22: Financial framework
Financial framework Cash Performance Creating value for shareholders through cycle CFFO + Divestments Pulling levers today to manage the financial framework Pay-out Investment Dividends + Attractiveness, Buybacks resilience Multi-year timescales and planning Balance Sheet Positioning to cove
Slide 23: Portfolio
Integration with BG LNG Oil and gas production Portfolio Equity liquefaction capacity in million tonnes per annum Million boe per day 50 4 25 2 0 0 Shell + BG Exxon Chevron Total BP Exxon Shell + BG Chevron Total BP 2015 2018 Liquids Gas Oil & gas proved reserves - 2015 billion boe 30 20 BG transa
Slide 24: BG portfolio is delivering
Integration with BG BG production Q1 2016: 0.8 mboed (+25% Q1-Q1) BG portfolio is delivering Asset availability 93% Reducing capital spend Increasing production Reducing capital investment Thousand boe per day $ billion +25% 800 3 600 2 400 1 200 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 25: Integration timeline
Integration with BG Integration 15 February 2016 End 2016 timeline BG acquisition Integration completed completed August 2015 Day 30 Day 60 Day 90 Today Joint integration Deliver safe, efficient operations Combine best practices and retain best staff planning team established Management anno
Slide 26: Synergies update
Integration with BG Synergies update Synergies Corporate, administrative, $ billion update SG&A organisation and IT operational efficiencies 4 Additional synergies Procurement Procurement spend1 3 Marketing & Reduced costs 2 shipping 1 Exploration Reduced activity via BG combination 0 2016 2
Slide 27: Cash flow priorities 2016-18
Manage down-cycle Cash flow 1 2 3 priorities 2016-18 Priorities Buybacks Debt reduction Dividends for cash & capital investment Reduce capital Reduce Deliver new Divestments investment operating costs projects Powerful levers to underpin financial framework Royal Dutch Shell | June 7, 2016 27
Slide 28: Divestments
Manage down-cycle 2016-18 Divestments program Divestments $ billion Portfolio simplification and 30 high-grading 2016-18 announced: Showa Shell Earmarked for disposal Maui pipeline 20 Denmark marketing Up to10% of oil + gas Malaysia refining production Motiva JV end ~5-10 oil + g
Slide 29: Deliver new projects
Manage down-cycle Significant oil & gas + Deliver new Downstream production under Thousand boe per day* Million tonnes per annum projects construction 1200 15 Capex to free cash flow 800 10 High margin / price upside 400 5 barrels 0 0 2014-15 2016-17 2018+ 2014-15 start-ups 2018+ start-ups 201
Slide 30: Significant reduction in project flow
2013 2014 2015 2016 2017+ Track record Oil sands mining Carmon Creek Significant Shales Deep water Shales Appomattox reduction in Integrated Gas Bonga South West Arrow Greenfield LNG project flow Elba LNG Browse LNG US GTL Wheatstone LNG Abadi redesign MLNG Dua JVA LNG Canada Lake Char
Slide 31: Reduced exploration spend
Reduced Exploration expenditure exploration $ billion 8 spend 7 6 5.5 5 $3 billion reduction 4 ~2.5 ~2.5 2 0 2013 2014 2015 2016E 2017/18 avg Heartlands Frontier BG Material reduction in exploration spend BG acquisition + recent Shell discoveries reduces our requirement for exploration More
Slide 32: Lower & more predictable capital investment
Manage down-cycle Capital investment Lower & more $ billion; excludes BG acquisition in 2016 predictable 60 58 capital 47 -35% investment 40 36 $25-30 billion 29 20 0 2013 2014 2015 2016E 2017 - 20 avg Base + short cycle Committed growth projects Growth options/exploration BG Planning for $25-$30
Slide 33: Reduce operating cost
Manage down-cycle Operating cost Reduce $ billion operating cost 60 50 48 46 -20% 40 40 20 $40 billion 0 2013 2014 2015 end-2016 run-rate Shell BG Substantial reductions delivered “Lower for ever” mindset + BG synergies Staff, supply chain + contractors Divestments , growth, FX impacts Royal
Slide 34: Pulling levers to manage financial framework
Manage down-cycle 2016-18 levers Pulling levers to Reduce Reduce manage Divestments capital investment operating costs Deliver new projects financial framework 2015 baseline: 2017-2018 $ billion Shell + BG 2016 potential Trend to 40 Reducing our cash break-even Operating costs 46 Multi-billion p.a
Slide 35: John Abbott, Downstream Director
John Abbott Downstream Director Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016
Slide 36: Downstream
Downstream Cash engine Growth priority Marketing Refining & Trading Chemicals Improve our financial Differentiated products Full integration with trading Feedstock plays performance Brand leverage + customer offer Improve retained assets Capacity growth Upgrading our portfolio Sele
Slide 37: Downstream financial performance
Downstream Earnings + ROACE Cash flow financial $ billion 10 % $ billion 15 20 performance 10 5 10 5 0 0 0 2012 2013 2014 2015 16Q1 2012 2013 2014 2015 16Q1 4Q rolling 4Q rolling Marketing Chemicals Cash flow excluding working capital Refining & trading ROACE (RHS) Working capital movements Free cas
Slide 38: Oil Products
Financial performance Stronger results from smaller portfolio Oil Products Million barrels/day $ billion $ per barrel Advantaged feedstock + supply 4 8 8 Asset sales -20% -30% +25% Products + brand 3 6 6 2 4 4 1 2 2 0 0 0 Refining capacity Marketing volumes 2007 2015 2007 2015 Oil products ear
Slide 39: Improving our Downstream footprint and performance
Improving our Portfolio change Asset sales Downstream Backbone / grow: $ billion footprint and Chemicals China 4 Australia DS performance LNG for transport Premium fuels + lubes Italy DS Refinery crude flexibility MLP others others Denmark 3 MLP Fix: Showa Shell Netherl
Slide 40: Optimization of footprint
Oil Products Motiva JV restructuring Showa Shell divestment Optimization Terminals (26) – Saudi Aramco of footprint Terminals (9) – Shell Ethanol Hub Refinery Showa Shell Sekiyu K.K. Kawasaki Refinery, Japan Port Norco Arthur Convent Exit from JV with Saudi Aramco Sale of ~33% of Showa Shell Sek
Slide 41: Shell Oil Products – marketing
Investing in selective growth Shell Oil Products – marketing Marketing - ROACE Marketing – free cash flow Global retail - Global lubes - premium product penetration premium products penetration % $ billion % % 30% 5 30% 30% 4 20% 20% 20% 3 2 10% 10% 10% 1 0% 0 0% 0% 2012 2013 2014 2015 16Q1 2012 201
Slide 42: Chemicals
Growth priority Chemicals demand outlook Geographic balance Chemicals Million metric tonnes1 Million metric tonnes Ethylene and Propylene 400 North America 2016 Europe 300 Asia Pacific & Middle East 200 Feedstock balance Million metric tonnes Ethylene and Propylene 100 Strengthening our core 2016
Slide 43: Chemicals
Growth priority Ethylene capacity Under construction Chemicals Million metric tonnes Pennsylvania 425,000 tonnes additional cracker Alpha Olefins capacity Bukom 8 start-up Nanhai I USGC Nanhai II Geismar, USA restructuring 6 New liquids cracker and derivatives units Capacity: ~1.2 million tonn
Slide 44: Downstream competitive landscape
Downstream Downstream ROACE Oil Products ROACE competitive % % 30 landscape 30 20 20 10 10 0 0 2011 2012 2013 2014 2015 Q1 2016 2011 2012 2013 2014 2015 Q1 2016 Shell Peers Chemicals ROACE Brand % Global brand preference 30 20% 15% 20 10% 10 5% 0 0% 2011 2012 2013 2014 2015 Q1 2016 2011 2012 2013 20
Slide 45: Andrew Brown, Upstream Director
Andrew Brown Upstream Director Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016
Slide 46: Upstream
Upstream Cash engine Growth priorities Future opportunities Conventional oil & gas Deep water Shales Maintain resilience Advantaged growth, Large resource base Track record + competitive portfolio Drive improvement Future growth priority Lowering cost further Improve competitiveness
Slide 47: Upstream financial performance
Upstream Earnings by strategic theme Earnings by geography financial $ billion $ per barrel 120 $ billion 10 10 performance 60 5 5 0 0 0 -5 -60 -5 2013 2014 2015 16Q1 2012 2013 2014 2015 16Q1 4Q rolling 4Q rolling Conventional oil + gas Shales Rest of the world Americas Deep water Other Brent (RHS)
Slide 48: Reducing costs + improving performance
Reducing costs Upstream costs + improving $ billion 15 $ per barrel 30 -8% performance -15% Reduce costs + headcount 2014+ Upstream >5,000 staff + contractor positions 10 20 Exit ‘tail’ assets Potentially 5-10 country exits 5 10 - 0 2014 2015 2016E Operating costs Unit cost BG Royal Dutch Sh
Slide 49: Upstream: Fit for the future
Upstream Conventional oil & gas Deep water Shales “Fit for the future” Availability Availability Unit operating costs $/boe 100% 100% 20 -35% 80% 80% 10 60% 60% 40% 40% 0 0 15 30 45 60 0 10 20 2014 2015 2016E Direct unit operating costs $/boe1 Direct unit operating costs $/boe1 2014 2015 2016 Q1 201
Slide 50: Americas shales
Americas shales Average drill and complete costs – LRS wells Resources Maturing a new growth option $ million per well ~12 billion boe -50% 2020+ 12 Western Canada Gas Western Canada LRS 8 Appalachia 4 Reserves Permian Contingent resources - 0 Argentina development pending 2013 2014 2015 2016 Q1 Hay
Slide 51: Deep water
Deep water Reducing drilling costs Lowering capital intensity Shell + BG deep water growth Example Gulf of Mexico Capital efficient + profitable # drilling days $ thousand $ per boe break-even cost (examples) Thousand boe per day growth Variable spread 75 rate + drilling 1000 200 750 -30% materials
Slide 52: Deep water Brazil: step change in Shell position
Pre-salt FPSOs delivery1 Deep water Brazil: On-stream Pending development On-stream Replicant owned step change in Exploration 6. Iracema N. chartered Chartering under Chartered Shell position evaluation 5. Iracema S. 4. Sapinhoá N. Berbigão 3. Lula NE. Lapa Libra EWT /Sururu2 Lula W. Libra 2. Sapin
Slide 53: Deep water Gulf of Mexico
Kepler North Coulomb Appomattox Deep water Gulf Production Thousand boe per day 2016 discovery ~20 kboe/d ~175 kboe/d potential Drilling 300 Tie-back to Na Kika Tie-back to Na Kika ~650 million boe resources of Mexico moratorium Shell 50% Shell 100% (operator) Shell 79% (operator)
Slide 54: Conventional oil + gas
Conventional oil Selective growth + gas Thousand barrels per day 300 Clair ph2 Tempa Rossa others Significant cash engine for Shell 200 Corrib Kashagan Sabah gas Schiehallion 100 Knarr G-U ph2 others 0 2014-15 2016-17 2018-19 ~2020 Schiehallion FPSO Start-ups: 2014-15 2016-17 2018+ Capital investmen
Slide 55: Track record + exploration strategy
2016 targets Track record + Heartlands UK Russia exploration Netherlands Germany Frontier Canada Albania strategy USA Egypt Oman China Trinidad &Tobago Nigeria Brunei Malaysia Tanzania Prospect Time to size production Resources added 2010-2015 (million boe) (years) Heartland Resources (billion boe)
Slide 56: Upstream
Upstream Cash engine Growth priorities Future opportunities Conventional oil & gas Deep water Shales Maintain resilience Advantaged growth, Large resource base Track record + competitive portfolio Drive improvement Future growth priority Lowering cost further Improve competitiveness
Slide 57: Maarten Wetselaar, Integrated Gas Director
Maarten Wetselaar Integrated Gas Director Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016
Slide 58: Integrated Gas
Integrated Gas Cash engine Future opportunities Integrated Gas New energies LNG Gas-to-Liquids Oil + gas production Sakhalin LNG Liquefaction Pearl GTL Qatargas 4 Marketing & trading Muscat LNG Regasification Focus on: Cash + returns Hazira, India: LNG jetty Create + secure new demand IOC le
Slide 59: Integrated Gas financial performance
Integrated Gas Earnings Capital employed financial $ billion $91 billion as at Q1 2016 performance 10 5 In service Under construction 0 2012 2013 2014 2015 2016 Q1 4Q rolling Cash flow + ROACE LNG plant availability $ billion % % 15 30 100 10 20 90 5 10 80 0 0 70 2012 2013 2014 2015 2016 Q1 Q115 Q21
Slide 60: LNG supply + demand
LNG supply + Global LNG supply + demand outlook Demand growth drivers 2015-2030 demand Million tonnes per annum 2030 ~10% Downstream LNG 500 ~15% New LNG markets 400 300 ~20% Newly importing LNG markets* 200 100 ~55% Established LNG markets 0 2000 2005 2010 2015 2020 2025 2030 In operation Under con
Slide 61: LNG: Shell + BG
LNG: Shell + BG Sakhalin Sabine Pass QG-4 Oman Nigeria Brunei Atlantic LNG Equatorial Guinea Malaysia Equity capacity LNG Peru Gorgon Long-term offtake agreement NWS Pluto QCLNG Spot offtake in 2015 Deliveries in 2015 LNG volumes Liquefaction capacity Million tonnes per annum Capacity at year-end in
Slide 62: LNG pricing
LNG pricing Shell LNG sales + pricing linkage Regional gas prices Million tonnes per annum (2015 basis, Shell +BG) $ per mmbtu 60 25 50 20 40 15 30 Term contracts 10 20 (2-20 years) ~80% 5 10 0 0 Continued demand for oil + Sources Deliveries 2005 2007 2009 2011 2013 2015 gas hub linked LNG pricing
Slide 63: Developing new LNG markets
Developing new Portfolio of opportunities to Growing and diversifying market: Asia LNG markets market LNG Million tonnes per annum 300 Regas terminals 200 Create a new value chain in 100 LNG to transport 0 2000 2005 2010 2015 2020 2025 Japan Taiwan China Malaysia Korea India Indonesia Others T
Slide 64: Moderating our growth rate: Shell + BG LNG
Moderating our Options FEED Under construction On stream LNG sales growth rate: Shell + BG LNG Abadi Arrow Lake Charles Gorgon T2-3 Gorgon T4 LNG Canada Prelude NLNG T7 Sabine Pass T2-4* Sakhalin T3 Prince Rupert Elba* Browse QCLNG T3 others* Tanzania LNG Prelude 2018 Option recycled Gorgon 2016 R
Slide 65: New energies
New energies Exploring new opportunities New fuels Integrated Connected energy customer solutions New fuels Integrated energy Connected customer Winning company in the solutions energy transition Cleaner transportation NL + USA wind Connected mobility Established credentials: Biofuels +
Slide 66: Ben van Beurden, Chief Executive Officer
Ben van Beurden Chief Executive Officer Royal Dutch Shell plc Royal Dutch Shell | June 7, 2016
Slide 67: Transformation
2013-2015 2019-2021 Transformation average average ROACE 8% ~10% CREATE A WORLD CLASS INVESTMENT CASE Organic free cash flow $5 billion p.a. $20-25 billion p.a. Brent ~$90 ~$60 Improved capital Capital efficiency: Less cost + fewer Portfolio growth: efficiency: reduced 2013 spending people with BG t
Slide 68: Questions & Answers
Questions & Answers Royal Dutch Shell | June 7, 2016
Slide 69: Projects under construction
Start up Project Country Shell share Peak LNG 100% Products Legend Theme Shell Projects under (direct & Production Capacity indirect) % 100% mtpa Operated construction kboe/d 2016-17 Forcados Yokri Interagted Project (FYIP) Nigeria 30 50 Conventional oil + gas Gbaran-Ubie Ph2 Nigeria 30 150 Co
Slide 70: Pre-FID options
Phase Project Country Shell share Peak LNG 100% Products Legend Theme Shell Pre-FID options (direct & Production Capacity indirect) % 100% mtpa Operated kboe/d SELECT Kaikias United States 100 40 Deep water Libra pilot FPSO Brazil 20 150 Deep water LNG Canada T3-4 Canada 50 13 Integrated gas
Slide 71: HSSE performance
HSSE Goal Zero on safety Spills - operational performance Injuries – TRCF/million working hours million working hours Volume in thousand tonnes 10 4 800 5 2 600 0 400 0 '05 '07 '09 '11 '13 '15 16Q1 '05 '07 '09 '11 '13 '15E 16Q1 TRCF Working hours (RHS) Energy intensity – refineries Process safety En
Slide 72: Financial performance
Manage down-cycle Earnings + ROACE Cash flow Financial $ billion % $ billion $ billion performance 30 15 45 45 20 10 30 30 10 5 15 15 0 0 0 0 2012 2013 2014 2015 16Q1 2012 2013 2014 2015 16Q1 -10 4Q rolling -5 -15 4Q rolling -15 Upstream Downstream ROACE (RHS) CFFO Free cash flow (RHS) Integrated ga
Slide 73: Deliver new projects
Deliver new Project status projects Construction time elapsed % Pennsylvania cracker Project management Geismar AO4 Pernis solvent de-asphalting Appomattox Baronia/Tukau Timur Coulomb Rabab Harweel Integrated Project Nanhai China Chemicals Southern Swamp Tempa Rossa Prelude FLNG Berbigao Clair Ph2 G
Slide 74: Permian Delaware Basin
NEW MEXICO Permian Wolfcamp EUR improvement Delaware Basin % 300 +130% 200 100 0 2013 2014 2015 TEXAS Wolfcamp well cost improvement SHELL LEASES $ million 20 Premier LRS play in North America -60% ~300,000 net acres with >5,000 well locations 10 Multiple areas de-risked + ready for developmen
Slide 75: Marketing led growth
Oil products: Marketing led growth Europe 9,000 North America 16,000 Retail presence Marketing growth # Retail sites Marketing led growth Africa 2,000 Growth in China, India, East 9,000 Indonesia, Russia and Latin America 7,000 Mexico Retail presence in 70 countries + 43,000 sites Royal Dutch
Slide 76: Improving our refining footprint
Refining projects Canada - Scotford NW Europe – Pernis Improving our refining footprint Scotford, Canada Pernis, The Netherlands Quest carbon capture + storage (CCS) start-up 2015 Pernis: aromatics project High return projects Hydrocracker debottlenecking Pernis: solvent de-asphalting impr
Slide 77: Oil sands mining
Oil sands mining Energy intensity Canada AOSP Shell unit operating costs GJ per tonne produced $ per barrel 60 6 40 -50% 4 20 2 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Q116 Cash operating cost excl. energy DD&A (clean) Energy Focus on emissions management Successful turna
Slide 78: LNG: Australia
LNG: Australia North West Shelf (1989) Queensland Curtis (2015) Gorgon LNG (2016) Prelude FLNG (2018) 16.3 mtpa LNG 8.5 mtpa LNG 15.6 mtpa LNG 5.3 mtpa LNG + NGLs First Australian LNG 2010: FID 2009: FID 2011: FID Operating since 1970s 2014: first LNG 2016 : first LNG LNG ves
Slide 79: BG portfolio: Australia + Brazil
Integration with BG Queensland LNG Brazil pre-salt BG portfolio: Thousand boe per day # Thousand boe per day FPSO Cidade de Maricá Cidade Itaguaí Q1 2016 Australia + Brazil 200 T2 start up Nov 2015 40 200 Q3 2015 150 30 150 1st LNG Train 1 Dec 2014 100 20 100 50 10 50 0 0 0 2015-Jan 2016-Jan 2014-Ja
Slide 80: Capital markets day 2016: Re-shaping Shell
Capital markets day 2016 Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc June 7, 2016 “Let’s make the future” Royal Dutch Shell | June 7, 2016