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ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE
INVESTORS
14 APRIL 2015
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc
14 April, 2015
1
DEFINITIONS & CAUTIONARY NOTE
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 the Society of
Petroleum Engineers 2P and 2C definitions.
Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.
Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.
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 its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those
who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell
companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control. Companies over which Shell has joint control are generally referred to
as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to
indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and
assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.
Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations,
beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’,
‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a
number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this
presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results;
(e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and
targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and
regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the
risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs;
and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in
this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended
December 31, 2014 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be
considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 14 April, 2015. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any
obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those
stated, implied or inferred from the forward-looking statements contained in this presentation.
We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.
U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling
1-800-SEC-0330.
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14 April, 2015
2
ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE INVESTORS
BEN VAN BEURDEN
CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc
14 April, 2015
3
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
SRI programme

SRI annual roundtable

Ongoing engagement + roadshows

Learning events – hydraulic fracturing
and CCS in 2014
Governance programme

Remuneration committee roadshows

Chairman roadshows

AGM
www.shell.com/esg
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14 April, 2015
4
SHELL APPROACH TO SUSTAINABILITY
Helping to shape a more
sustainable energy future
Sharing wider benefits
where we operate
Running a safe, efficient,
responsible and profitable
business
www.shell.com/sustainability
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14 April, 2015
5
AGENDA
13:00 – 13:45
Ben van Beurden and Chad Holliday
13:45 – 14:00
Climate change:
Harry Brekelmans and Angus Gillespie
14:00 – 14:45
Q+A
14:45 – 15:10
Coffee break
15:15 – 17:30
Panel sessions Q&A (40 min each, 5 minutes to rotate):
17:30 – 18:00
Drinks
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14 April, 2015
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PANELS
Panel A: North America and Alaska update:
Marvin Odum (Director Upstream Americas) and
Ann Pickard (EVP Arctic).
Panel B: Upstream International Operated assets and Nigeria:
Bart van der Leemput (EVP Upstream International Operated),
Osagie Okunbor (Managing Director SPDC), and
Rupert Thomas (EVP Environment).
Panel C: HSSE & SP Performance, Environmental policy, Water and CO2:
Harry Brekelmans (Director Projects and Technology),
Lorraine Mitchelmore (EVP Heavy Oil), and
Angus Gillespie (VP CO2).
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14 April, 2015
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TRANSPARENCY
Sustainability reporting
1997
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Revenue transparency
Nigeria spills website
Oil sands performance report
Nigeria briefing notes
CDP
Sustainability report
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14 April, 2015
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SHAREHOLDER RESOLUTION: CLIMATE CHANGE DISCLOSURE
RESOLUTION INFORMATION REQUEST
2013
2014
2015



Asset portfolio resilience to post-2035
scenarios


Low-carbon R&D and investment strategies


Ongoing emissions management
Strategic KPIs and executive incentives

Public policy position



Disclosed by Shell
Board decision to support shareholder resolution at the 2015 AGM
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ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE INVESTORS
CHAD HOLLIDAY
NON-EXECUTIVE DIRECTOR AND
CHAIR OF THE CORPORATE AND SOCIAL
RESPONSIBILITY COMMITTEE
ROYAL DUTCH SHELL PLC
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CORPORATE AND SOCIAL RESPONSIBILITY COMMITTEE
CSRC MEMBERS
CHARLES HOLLIDAY
SIR NIGEL SHEINWALD
PATRICIA WOERTZ
GERRIT ZALM
Chair of CSRC
Responsibilities:

Review policy and performance for Shell General Business Principles and Code of Conduct.

Review management of HSSE and social impacts of projects and operations.

Monitor emerging environmental and social issues.

Input into the Shell Sustainability Report.
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14 April, 2015
11
SITE VISITS
2014 Activity
2015 Plans
Western Canada

Brazil biofuels

Onshore oil and gas

GoM operations

Oil sands operations

Separate visits:

Canada LNG potential

Kitimat
Tight gas, Appalachia

Moerdijk, Appalachian tight gas, Peterhead
Social and environmental considerations incorporated through all stages of major projects
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14 April, 2015
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STRATEGIC KPIS AND EXECUTIVE INCENTIVES
2015 EXECUTIVE BONUS STRUCTURE
50% weight
Operational Excellence
30% weight
CFFO
20% weight
Sustainable Development
10% weight
Safety
5% weight
Personal Safety
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10% weight
Sustainability
5% weight
Process Safety
14 April, 2015
4% weight
Energy Intensity
4% weight
Oil Spill volumes
2% weight
Water use
13
PARTNERSHIPS + ENGAGEMENT

Leverage outside expertise

Scientific organizations

NGOs

Governmental bodies

Long-term partnerships

Strengthened governance
Wetlands International
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14 April, 2015
IUCN
The Nature Conservancy
EarthWatch Institute
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WORKING WITH OTHERS
Shell Foundation
Center for Sustainable Shale Development

$250 million endowment from Shell

3rd party certification

Independent charity to support economic
development

Collaboration with environmental organizations

Shell certified in 2015

Example: Global Alliance for Clean Cookstoves

100 million households by 2020
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14 April, 2015
15
ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE INVESTORS
BEN VAN BEURDEN
CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
Copyright of Royal Dutch Shell plc
14 April, 2015
16
ENERGY TRANSITIONS
Long-term energy supply mix
2050 outlook
Million boe per day
+50%

Population increases from 7 to 9 billion

Enabled by cheap and reliable energy
Realities
+50%
Shell activities

Gas
Oil
Biomass
Wind

Requirement to mitigate climate change

Oil supply -70% by 2030 without new investment

Key role of gas & CCS
Coal
Nuclear
Other renewables
Solar
Energy transitions underway
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14 April, 2015
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STRATEGY AND INVESTMENT PRIORITIES
Grow cash flow + deliver competitive returns
Competitive financial
performance
Capital efficiency
Project delivery
Capital allocation by global themes
1
ENGINES:
Upstream +
Downstream
GROWTH PRIORITIES:
Integrated gas +
Deep water
LONGER TERM:
Resources plays +
Future opportunities1
Restructuring +
selective growth
Leadership in LNG
and deep water
Balancing growth &
non-technical risks
Iraq, Nigeria onshore (SPDC), Kazakhstan, Arctic, heavy oil
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INVESTMENT PRIORITIES
Conventional
exploration
Pre-FID large
project options
Post-FID large
projects
10%
Longer term: 25%
50%
Growth priorities: 40%
Short-cycle
projects1
40%
Engines: 35%
Base
2015
organic capital
investment
1

Care and maintain activities form base of capital investment

Safe and reliable operations remain our priority
2015
organic capital
investment
Resources plays, Majnoon, infill drilling
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14 April, 2015
19
HSSE + STRATEGY
Strategy: balancing growth and returns
Competitive financial
performance
Capital efficiency
Project delivery
Health, safety, security and environment key to delivery of strategy
Goal Zero



Opportunity realisation
No harm to people
No leaks
12 Life saving rules
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14 April, 2015


Early identification of SD
expertise required
Management framework
for SD in new projects
20
SUSTAINABILITY IN PROJECT LIFE CYCLE
Explore
Feasibility study
Identify & Assess
FEED
Select

Sustainability objectives

Initial HSE risk analysis

Baseline surveys

Local content strategy
FID
Define

On stream
Execute

Decommission
& restore
Environmental, social & health
impact assessment e.g.

Environmental, social &
health management plan
Greenhouse gas
 Biodiversity
 Water
 Social performance
Safety design and construction
studies

HSE management system

Performance monitoring

Decommissioning plan


Operate
Ceased production
Local content plan
Stakeholder management
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14 April, 2015
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2014 SAFETY PERFORMANCE
Goal Zero on safety
Spills - operational
Injuries – TRCF/million working hours
TRCF
million working hours
Volume in thousand tonnes
Working hours (RHS)
Energy intensity – refineries
Process safety
Energy Intensity Index (EEITM)
Number of incidents

HSSE priority

Performance + transparency
Tier 1 incidents
Tier 2 incidents
Injuries – TRCF/million working hours
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14 April, 2015
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CONTRACTOR SAFETY + MANAGEMENT
Assessment
Evaluation
Green
Technical
Amber
HSSE
Red
Commercial
Goal Zero
Monitor performance
and delivery including
gap closures agreed in
the HSSE plan

Number of fatalities
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Contract Management
14 April, 2015
Contractors represent 75% of working
hours
23
ONGOING EMISSIONS MANAGEMENT
Energy intensity
Emissions
Gj/tonne (energy required to produce a tonne of oil equivalent)
Upstream excl. Oil sands
Refining
Flaring performance
index
Million tonnes CO2 equivalent
Chemicals

2015 endorsed the World Bank’s Initiative to
Reduce Global Gas Flaring

"Zero Routine Flaring by 2030"
Million tonnes hydrocarbon flared
www.shell.com/ghg
* Indirect emissions were not recorded before 2009
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14 April, 2015
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WATER MANAGEMENT

Water regulation evolving rapidly
Centre of Excellence in Bangalore:

Water management plans

Integrated project delivery

water scarce areas

Technical support

future water scarce areas

Water R&D
Shell fresh water withdrawn
Million cubic metres
Dawson Creek water reclamation, Groundbirch
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14 April, 2015
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REDUCING ONSHORE NIGERIA FOOTPRINT
Restructuring onshore footprint

Nigeria onshore portfolio
2010 – 2015 divested 11 OMLs
OML4
OML40
OML38
OML41
Targeted investments: gas and
pipelines


Forcados Yokri Integrated
Project FID
Southern Swamp Associated
Gas FID

Gbaran Ubie phase 2 FID

Trans Niger Pipeline Loopline
(TNPL) FID
OML43
Forcados Yokri
Integrated project
OML42
Legend
OML34
OML26
OML45
OML27
14 April, 2015
OML21
OML31
OML46
Southern Swamp
Associated Gas
OML28
OML17
OML22
Gbaran Ubie Phase 2
OML32
OML11
OML23
OML36
OML24
OML33
OML18
TNPL
OML29
OML25
OML77
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OML20
OML30
OML35
OML79
Concessions – SPDC Legal
Divested Concessions
Major Rivers/Sea
FIDs
OML72
OML74
OML71
26
NIGERIA: SPDC JOINT VENTURE PERFORMANCE
2014 overview

Widespread oil theft remains a challenge

0 fatalities, 19 kidnappings
Illegal fitting on NCTL at Opomakri, January 2015
SPDC* spills
Production
Thousand tonnes
#
volume of operational spills
volume of sabotage spills
k boe/day (SPDC)
number of operational spills >100kg (RHS)
number of sabotage spills >100kg (RHS)
*SPDC = 30% Shell, 55% NNPC, 10% Total, 5% Agip; all data on 100% basis unless stated
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14 April, 2015
27
ALASKA UPDATE
2015 Chukchi Sea

2 rig programme

28 support vessels

Pending Exploration Plan approval &
drilling permits
2012 learnings + actions

Upgraded contractor management

Certified Arctic Containment System (ACS)

Improved incident command system and oil
spill response
Transocean Polar Pioneer
Noble Discoverer
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14 April, 2015
28
CANADA UPDATE
LNG Canada
Quest Carbon Capture and Storage

13 mtpa in FEED (100% capacity)

Targets oil sands emissions

Community advisory group

Expected start up 2015

First Nations visit Oman LNG 2014

1mtpa CO2

Environmental Assessment Certificate application
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14 April, 2015
29
CLIMATE CHANGE PUBLIC POLICY POSITION
Pro-active advocacy

A robust price on carbon

Government support for early stage low
carbon technologies

Explore plausible futures in Shell scenarios

Work with governments on energy
transitions
Member of / supported:

World Bank Carbon Pricing statement (2014)

World Bank Zero routine flaring initiative

International Emissions Trading Association

Prince of Wales Corporate Leaders Group

Zero Emissions Platform

WEF Oil & Gas Climate Initiative
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14 April, 2015
30
CLIMATE CHANGE + LOW CARBON ACTIVITY
Gas
Energy Efficiency
Biofuels
Carbon Capture & Storage
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14 April, 2015
31
CLIMATE CHANGE
HARRY BREKELMANS
DIRECTOR PROJECTS AND TECHNOLOGY
ROYAL DUTCH SHELL PLC
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14 April, 2015
32
PROJECTS AND TECHNOLOGY AT SHELL

Field development planning
Projects and Technology in numbers:

Project execution

14,000 staff

Technical Services

323 patent applications

Research & Development

$1.2 billion R&D spend in 2014

Safety & Environment

Three dedicated technology centres

Contracting & Procurement
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14 April, 2015

Amsterdam, Houston, Bangalore
33
SHELL ENERGY SCENARIOS
Energy demand by source
Exajoules
2000
Copyright of Royal Dutch Shell plc
2030
40 years of scenarios

Designed to stretch management
thinking

Testing business models

Contrasting plausible views of
the future

Are not a forecast of likely events
2060
Oil
Coal
Gas
Nuclear
Biomass/Biofuels
Other Renewables
Wind
Solar
14 April, 2015

34
ENERGY-RELATED CARBON EMISSIONS: SCENARIOS
Shell and IEA scenarios 1
Life-cycle CO2 intensity of electricity generation
GtCO2/year
CO2 equivalent/ KWh2
50
40
30
20
10
0
2000
2020
Oceans
2040

2080
2100
Mountains
Current policies

2060
New policies
450 ppm
Shell has to plan in a range of possible futures
IEA 2° C scenario is normative
1: The New Lens Scenarios were based on 2011 IEA data, whereas the IEA World Energy Outlook 2014 scenarios are based on 2013 IEA data
2: IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation, 2011
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ENERGY TRANSITIONS

Shift to lower carbon energy system

Dynamic, policy-driven changes

Local and global trends
Example: Germany electricity consumption (by source)
EJ/Year
Oil
Coal
Biomass Gasified
Nuclear
Geothermal
Wind
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14 April, 2015
Natural Gas
Biofuels
Biomass/Waste Solids
Hydro-electricity
Solar
Other renewables
36
STRANDED ASSETS HYPOTHESIS IGNORES SUPPLY + DEMAND REALITIES
Oil demand & supply

million barrels of oil per day
Transport underpins oil demand,
despite electric vehicle growth
Oceans
IEA current policies
Mountains
IEA new policies
IEA 450
Natural decline
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14 April, 2015

Substantial supply gap

70 million barrels per day

80% replacement of today’s production

Equivalent to ~6 x Saudi Arabia or ~80
x UKCS

~$15 trillion investment
37
DIRECT EMISSIONS MANAGEMENT
Design and operations
Future energy technology

GHG emissions plans in both design phase and
operation of assets

Amal steam using renewables for enhanced oil
recovery

New projects include energy efficient design

Glasspoint
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14 April, 2015
38
INDIRECT EMISSIONS MANAGEMENT
FLNG
Clean fuels
CCS
LNG for transport
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14 April, 2015
39
SHELL RESEARCH + DEVELOPMENT
Significant R+D spend
Total R+D spend
$mln
Shell

>$1bn year since 2007

Averaging ~15% low-carbon R+D
Peer group
Full size hydraulic test rig, The Netherlands
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14 April, 2015
40
LOW CARBON R+D AND INVESTMENT STRATEGIES
A Commercial operation*
B
R&D
Gas
Technology demonstration/research
C Used in Shell operations
Exploration
FEED
FID
LNG 7.7mtpa
CCS
LNG 6.5mtpa
Peterhead (1 mtpa)
Biofuels
Westhollow research centre
“cellulosic biofuels”
Solar PV
Solar
Alternative
energy
carriers
Future energy
technologies
On stream
LNG 7.4mtpa
Gorgon
(3-4 mtpa)
Quest
(>1 mtpa)
Raizen 2G
Iogen cellulose ethanol
Glasspoint
Solar EOR
Shell Technology
Ventures
2 B Energy
LNG 24mtpa GTL
Mongstad Cansolv Otway
Raizen 1G
(sugar cane ethanol)
Showa shell
PV manufacture
H2 network
(Germany)
Onshore
Offshore
(50 MW net) (450 MW net)
Wind
Technology Efforts
Define
Execute
Operate
* Volumes in Shell share
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14 April, 2015
41
CLIMATE CHANGE
ANGUS GILLESPIE
VICE PRESIDENT CO2
ROYAL DUTCH SHELL PLC
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14 April, 2015
42
SHELL GROUP CO2
Group CO2 function – what we do
Regular assessment of CO2 exposure since 2007
CO2
Competitive
research and analysis
Policy
and advocacy
Portfolio
Implementation

CO2
Includes CCS
CO2 emissions, intensity, costs
screening value of $40 per tonne base case
Long-term
assessment of where mitigation or
adaptation might be required
CO2
strategy
CO2
management framework
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CO2 positioning
14 April, 2015
43
PROJECT ECONOMICS EXAMPLE
NPV analysis: example
NPV sensitivities: example
$ cumulative
$ /yr
3
12
2
8
1
4
0
0
Oil Price
CO2 price
Capex
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
-1
-2
-3
-4
Annual cashflow
Undiscounted Cumulative cashflow
Discounted Cumulative cashflow
-4

$40 / tonne CO2e

$70-$110 / bbl Brent oil

$3-$5 / mmbtu Henry Hub gas

-12
-16
Shell project screening values
Opex
-8
Recovery factor
- impact
Base NPV
(inc $40/t CO2)
+ impact
Future oil, gas and carbon price sensitivities are incorporated in project economics for all Shell projects
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44
SHELL AND IEA PRICE ASSUMPTIONS
Oil price
Europe CO2 cost
$/barrel
$/tonne
IEA “Current Policies”
Shell base case
IEA “New Policies”
IEA “450”
Shell Planning
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14 April, 2015
45
ASSET PORTFOLIO POTENTIAL RESILIENCE TO SCENARIOS
Strategic
theme
Oil price effect
CO2 cost effect
Combined cost effect
% difference in NPV
vs Shell $90 scenario
% difference in NPV
vs Shell $40/ tonne scenario
% difference in NPV
Future
Opportunities
Resource
Plays
Deep
Water
Integrated
Gas
Upstream
Engine
Downstream
Engine
IEA “Current Policies”
IEA “New Policies”
IEA “450”
*The final outcome will include factors such as actual energy and CO2 prices, and portfolio choices made by Shell
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14 April, 2015
46
ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE INVESTORS
BEN VAN BEURDEN
CHIEF EXECUTIVE OFFICER
ROYAL DUTCH SHELL PLC
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14 April, 2015
47
Q&A
14 APRIL 2015
ROYAL DUTCH SHELL PLC
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14 April, 2015
48
BACKUP
14 APRIL 2015
ROYAL DUTCH SHELL PLC
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14 April, 2015
49
HUMAN RIGHTS

Founding member of UN Global Compact.

Collaboration with Danish Institute of Human Rights

Implementing Voluntary Principles on Human Rights since 2000

OBJECTIVE


Due diligence to avoid infringements of rights
Be able to ‘know and show’ systems are effective
Access to grievance mechanisms for stakeholders
POLICY
COMMITMENT
Business
Principles
Shell Code of
Conduct
HSSE & SP Control
Framework
Supplier
Principles
Governance: HSSE SP Exec & Human Rights Working Group
SHELL FOCUS
AREAS
Contracting &
Procurement
Human Resources
Security
Social Performance
Partnerships: Danish Institute for Human Rights,
Consensus Building Institute
INDUSTRY
COOPERATION
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Human Rights Due Diligence
14 April, 2015
Human Rights & Impact
Assessment
Grievance Mechanisms
50
ASSET INTEGRITY AND PROCESS SAFETY
PREVENTING AND MITIGATING MAJOR SAFETY INCIDENTS
Goal Zero: No Harm, No Leaks
1
Assets are safe and we know it
Control barriers
2
Recovery measures
THREATS
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CONSEQUENCES
Leadership
behaviours
TOP EVENT
3
4
5
Standards and processes
Motivated, competent
people
Continuous improvement
14 April, 2015
Act
Plan
Check
Do
Effective
design and
application
of barriers
51
BRENT FIELD DECOMMISSIONING

Brent Delta Topside plan submitted

Consultation + resubmission

Target date single lift: summer 2016

Full field decommissioning plan to follow

8 year stakeholder engagement

~ 180 bodies

Includes environmental groups and
NGOs
www.shell.co.uk/brentdecomm
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14 April, 2015
52
GRONINGEN EARTHQUAKES – NETHERLANDS GAS
2012-2014 Earthquakes
Key focus areas
Study
work and hazard risk assessments
Innovative
Intensive
0
10
20km
collaboration
Loppersum
stakeholder management and
dialogues
Government decisions taken
Production
€1.2bn
restriction
Mitigation programme
force:
0.1–1.0
3.5 and higher
www.namplatform.nl
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14 April, 2015
53
NIGERIA: SHELL ENVIRONMENTAL PERFORMANCE
Remediation
# of spills sites*
Illegal fitting on 28” TNP at Bodo West, Feb 2015
Number of spills in year (all causes)
Sites requiring remediation
*includes 125 sites from 1969-1993 in Ogoniland confirmed during decommissioning in 2013
All data on a Shell operated basis
Copyright of Royal Dutch Shell plc
14 April, 2015
54
IRAQ UPSTREAM
Basrah Gas Company
Majnoon oil development
Basrah Gas Company storage tanks
Majnoon

Shell 44%, started up in 2013

Shell 45%, started up in 2013

Largest flare reduction project in the world

Flaring increased with production

Avoided 14 million tonnes of CO2 from flaring
(100% basis)

Flaring reduction programme under construction

To provide power for domestic market late 2015

Processing capacity 550mmscf/d associated gas

2 billion scf/d potential
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14 April, 2015
55
REVENUE TRANSPARENCY

Voluntary country-level tax disclosure
since 2012

EITI board position and founder

Encourage government transparency

Preparation for reporting 2015
payments in 2016

No country exemptions may cause
conflict in law

Shell is actively engaging with host
governments including UK

~$18 bln taxes & royalties paid 2014

~$73 bln excise tax collected in 2014

Leadership in tax transparency
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14 April, 2015
www.shell.com/payments
56
RESTRUCTURING RESOURCES PLAYS + REDUCING EXPOSURE
W. Canada gas
Russia
Germany
W. Canada LRS
Algeria
Appalachia
`
China
Turkey
Tunisia
Oman
Colombia
Permian
Arrow CBM
Argentina
Neuquen
Gas
Liquids Rich
On-stream
E&A
Capital investment
$ billion
-30%
Americas
Copyright of Royal Dutch Shell plc

North America restructured in 2014

International portfolio restructuring underway
International
14 April, 2015
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TIGHT GAS OPERATIONS: EMISSIONS MANAGEMENT IN ACTION

Air emissions specifically covered in onshore
operating principles



Green completions in UA onshore operations

Shell conducts its operations in a manner that
protects air quality and controls fugitive
emissions as reasonably practicable
Infrared cameras to identify fugitive methane
Studies with University of Texas and EDF
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14 April, 2015
58
DEMAND OUTLOOK AND RESERVES
New policies scenario
450 Scenario
Mtoe/d
Shell SEC
proved
reserves
Oil
Coal
Gas
Mtoe/d
Resources*
Nuclear
Hydro
Shell SEC
proved
reserves
Bioenergy
Resources*
Other renewables
Shell

Reserves life at end 2014: ~11 years

Further 2P +2C resources


Oil and gas portfolio relevant in IEA 450 scenario
Coal demand is most impacted
* Resources shown includes only resources in select or define phases (post feasibility study or in FEED) or are under execution or on stream.
Copyright of Royal Dutch Shell plc
14 April, 2015
59
ENVIRONMENTAL IMPACT: FUGITIVE METHANE
Study by the University of Texas at Austin in
collaboration with the Environmental Defense Fund
and 9 operators
EPA production sector methane emissions
Gg/yr
Reason for the study:

Wide variation in EPA national inventories

Limited measured data

Data better informs scientifically sound policies and
regulations
Well completion emissions lower than previously estimated

Emissions from pneumatic controllers and equipment leaks
higher than EPA national emission projections
7,000
6,000
5,000
4,000
80
34
Chemical
Pumps

225
0
-500
-1000
-636
Pneumatic
Controllers
Total emissions similar to 2011 EPA national inventory
500
Completions
with HF

Methane Emissions
Difference (Gg/yr)
Measurements from 190 onshore natural gas sites in the US
Methane Emissions (Gg)

Equipment
Leaks
Key findings:
3,000
2,000
1,000
0
2010 EPA (313 bcf)
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14 April, 2015
2011 EPA (133 bcf)
UT/EDF (119 bcf)
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ENVIRONMENTAL IMPACT: LIFE CYCLE BENEFITS OF GAS OVER COAL
Estimate vs. threshold
Methane leakage rates (% of
gross production)
Critical methane leakage gas vs. coal (8%) based on a 100 year time-frame
3.79%
1.4%
EPA NG sector total
= 1.26%
4.11%
0.34%
1.81%
0.79%
0.47%
0.69%
0.9%
1.3%
1.39%
0.73%
0.87%
0.43%
NG Production
2.2%
0.43%
1.2%
Other NG Sector

Current data supports the policy arguments on climatic benefit of gas over coal; though most research has
been based on the 2009-2010 EPA inventories with higher system-wide emissions

Definitive answer once EDF series is completed for other segments of the natural gas value chain
Source: US EPA, UT/EDF Study, NPC (George et al), NREL (Logal et al), IDA (Weber et al), Cornell (Howarth et al), ANL (Burnham et al), NETL (Skone et al) and IEA
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14 April, 2015
61
ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE
INVESTORS
14 APRIL 2015
ROYAL DUTCH SHELL PLC
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