Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — UBS Global Oil & Gas Conference 2008
26 slides from Shell's conference presentation, Sep 24, 2008
Slide 1: Delivery Through Technology
ROYAL DUTCH SHELL PLC DELIVERY THROUGH TECHNOLOGY STEPHEN WHYTE VP Exploration & Production Brazil UBS GLOBAL OIL & GAS CONFERENCE RIO DE JANEIRO - 24 SEPTEMBER 2008
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: Energy Landscape
ENERGY LANDSCAPE POPULATION GROWTH ENERGY DEMAND Billion people Gigajoule per capita – primary energy 10 400 1971-2005 USA 8 300 6 4 200 Europe (EU15) South Korea 2 Japan 100 China 0 1975 2000 2025 2050 NORTH AMERICA & EUROPE LATIN AMERICA 0 India CHINA & INDIA ASIA & OCEANIA 0 10 20 30 40 MIDDLE EA
Slide 4: Building New Heartlands
BUILDING NEW HEARTLANDS INDUSTRY LANDSCAPE SHELL STRATEGY HIGHER PRICES & COSTS PORTFOLIO SHIFT • NEW LEGACY ASSETS • UPSTREAM + SELECTIVE DOWNSTREAM NEW ENERGY COMPETITORS CHALLENGE TECHNOLOGY • NEW HYDROCARBON RESOURCES • CLEANER FUELS, CO2 SOLUTIONS COMPLEX PROJECTS PORTFOLIO MANAGEMENT SUSTAINED
Slide 5: Key Projects Under Construction
KEY PROJECTS UNDER CONSTRUCTION PERDIDO SPAR HULL SAKHALIN II LNG TRAIN 1 GJOA HALFDAN PHASE IV CORRIB KASHAGAN AOSP N AMERICA TIGHT GAS SAKHALIN II PORT ARTHUR PEARL GTL QATARGAS 4 PERDIDO GUMUSUT URSA/PRINCESS OMAN WATERFLOOD NIGERIA SINGAPORE CHEMICALS AFAM NORTH RANKIN B BC-10 PLUTO NWS T5 / ANG
Slide 6: Long History and New Horizons
LONG HISTORY AND NEW HORIZONS FIRST OIL TANKER 1930s •AVIATION FUEL •LPG •PETROCHEMICALS 1940s •SCHOONEBEEK GAS •ARCHIE EQUATION 1950s 1920s •PALYNOLOGY •2D SEISMIC •THERMAL EOR 1990s 1960s • UNDERBALANCED • SEMI-SUBMERSIBLE RIGS DRILLING • OMAN DRILLING • HIGH PERFORMANCE FUELS • FIRST LNG • COAL G
Slide 7: Technology Investment
TECHNOLOGY INVESTMENT R&D SPENDING (US$ MLN) WORLD WIDE PATENTS In $mln # of patents/year 1200 400 1000 300 800 200 600 100 400 200 0 '02 '03 '04 '05 '06 '07 '02 '03 '04 '05 '06 '07 EXXON MOBIL BP AVERAGE OTHER IOC’S CHEVRON TOTAL AVERAGE NOC’S 6
Slide 8: Technology: Exploration & Production
TECHNOLOGY: EXPLORATION & PRODUCTION EXPLORE DEVELOP MAXIMISE & UNLOCK EXTEND HEAVY OIL PROPRIETARY TECHNOLOGY • Maximise value of today’s asset base • Leverage technology and capability to win new INTEGRATION business 3RD PARTY • Strength across the full PRODUCTS SHELL CAPABILITIES technology spect
Slide 9: Exploration Performance
EXPLORATION PERFORMANCE KEY EXPLORATION ACTIVITIES 2001 – 2007 EXPLORATION MATURATION Bln BOE Discovered Development status Onyx resources 10 Khazar H108 Kairan Aktote 8 2007 Great White Ubah 6 2006 Bonga Bosi Toccata 2005 Pluto Prelude 4 BS-4 Chandon 2004 Io Clio 2003 2 2002 FOCUS BASIN DISCOVERIES
Slide 10: Exploration: Imaging Leadership
EXPLORATION: IMAGING LEADERSHIP PRE-SALT DEPTH IMAGING Salt Salt ? Prospect Conventional OBS Wide Azimuth Seismic OCEAN BOTTOM SENSOR TECHNOLOGY Node containers Automated node deployment Node laying ROV Node on sea bed Courtesy of Fairfield Industries 9
Slide 11: Deepwater: Pushing the Boundaries
DEEPWATER: PUSHING THE BOUNDARIES HISTORICAL OVERVIEW GoM - Perdido Brazil – BC10 Malaysia - Gumusut Perdido spar hull FPSO construction Deepwater: Gumusut-Kakap 10
Slide 12: Global Technology Deployment: Smart Fields
GLOBAL TECHNOLOGY DEPLOYMENT: SMART FIELDS WELL DESIGN TO TARGET MULTIPLE RESERVOIRS REAL TIME RESERVOIR MANAGEMENT MEASURE MODEL INFLOW CONTROL VALVES (ICV) CONTROL DECIDE 11
Slide 13: LNG: Maintaining IOC Leadership
LNG: MAINTAINING IOC LEADERSHIP CAPACITY GROWTH LEADERSHIP Shell share, year end, mtpa LNG capacity, year end, mtpa 25 25 20 20 15 15 10 10 5 5 0 0 2005 2006 2007 2008-9 2010+ Shell Exxon BP Total Chevron AUSTRALIA BRUNEI MALAYSIA NIGERIA 2007 2012 OMAN SAKHALIN QATARGAS 4 PLUTO Includes only projec
Slide 14: Pearl: A World Class Integrated GTL Project
PEARL: A WORLD CLASS INTEGRATED GTL PROJECT DRY GAS Offshore Gas GTL plant production processing Qatar North Field 1.6 bcf/d 120 kboe/d 140 kbbl/d Products Other GTL Gasoil (indicative) LPG Naphtha Ethane >1 mtpa Kerosene Gasoil >2 mtpa Synthetic Base Oil Condensate Base Oil >1 mtpa Exploration & Pr
Slide 15: GTL: Technology at Work
GTL: TECHNOLOGY AT WORK EMISSIONS REDUCTIONS FOR LIGHT DUTY DIESEL ENGINES 100% = refinery diesel 100% 50% 0% NOx PM HC CO % reduction 5-45% 25-40% 45-60% 40-85% SYNTHETIC FUEL’S COMBUSTION (RIGHT) IS IMMENSELY CLEANER THAN STANDARD DIESEL’S COMBUSTION (LEFT) EXISTING ENGINES OPTIMISED ENGINES Emiss
Slide 16: Shell and Sub-Salt
SHELL AND SUB-SALT SUB-SALT GLOBAL PRESENCE SUB-SALT HISTORY • ~6 bln boe produced • 1,500 Shell operated wells • Current production ~300,000 boe/d world-wide • Technology advances PRODUCTION DEVELOPMENT EXPLORATION 50 years of experience 15
Slide 17: Sub-Salt Challenges
SUB-SALT CHALLENGES •Reservoir mapping & imaging •Complex geology •Drilling costs •Reservoir development & performance 16
Slide 18: Groningen Sub-Salt
GRONINGEN SUB-SALT EUROPE’S LARGEST SUB-SALT GAS FIELD • Onstream for more than 40 years • Flexible capacity of 2.8 mln boe/d • Recovery factor of ~95% planned 17
Slide 19: Gulf of Mexico - Princess
GULF OF MEXICO - PRINCESS GULF OF MEXICO – SEISMIC • Discovered in 2000 • Start of Production: 2002 • Water depth: 1,083 meters • Reservoir depth: 4,950-6,060 meters • Salt layer thickness: ~1,500 meters • Total gross recovery: 175mmboe 3D visualization of a seismic survey in the Gulf of Mexico 18
Slide 20: Oman Sub-Salt
OMAN SUB-SALT INTRA SALT HYDROCARBONS • Petroleum Development Oman partnership since 1967 • Intra- and pre-salt carbonate fields • Technology advances • Integrated geosciences • Drilling technology • Increasing recovery factor (EOR) 19
Slide 21: Shell in Upstream Americas
SHELL IN UPSTREAM AMERICAS UPSTREAM AMERICAS CAPITAL EXPENDITURE AMERICAS REST OF THE WORLD OIL & GAS PRODUCTION AMERICAS REST OF THE WORLD 2007 Shell activities 20
Slide 22: Shell in South America
SHELL IN SOUTH AMERICA COLOMBIA VENEZUELA • Cano Sur exploration block, Llanos • Urdaneta West Field (Lake Maracaibo) Basin (2008) • Downstream BRAZIL • Downstream: PERU • 17% market share in fuels • Joint oil & gas distribution exploration (2008) • Chemicals, B2B, aviation, marine, lubricants • US$
Slide 23: Exploration and Production in Brazil
EXPLORATION AND PRODUCTION IN BRAZIL OVERVIEW SHELL’S POSITIONS BMES-27&28 • Current production of 26 Kboe/d BMES-23 from Bijupira/Salema BMC-25 Azulao • Interest in 10 blocks; 5 in Santos BC-10 Basin (6,000 km2) BMC-31 • BC-10 deepwater development Rio de Janeiro Bijupira- Salema planned for start
Slide 24: Brazil Deepwater: BC-10
BRAZIL DEEPWATER: BC-10 BC-10 START UP IN 2009 • Peak production of 100 kboe/d • Campos Basin in ~1,780 m depth • FPSO construction in Singapore • Transit to Brazil in 2008 • Subsea hardware fabricated in Brazil FPSO construction in Singapore 23
Slide 25: Royal Dutch Shell
ROYAL DUTCH SHELL CREATING NEW HEARTLANDS FOR SHELL • Investment underpinned by financial performance • Technology, integration, scale COMPETITIVE INVESTMENT PORTFOLIO TODAY • ~66 bn boe resources; ~55 years resources life • 1 mboe/d upstream and 0.3 mb/d downstream under construction • ~0.8 mboe/d
Slide 26: Delivery Through Technology
ROYAL DUTCH SHELL PLC DELIVERY THROUGH TECHNOLOGY STEPHEN WHYTE VP Exploration & Production Brazil
Royal Dutch Shell — UBS Global Oil & Gas Conference 2008 on 6ix