1. business and industrial

Introduction to Shell Global
and Shell Appalachia
J R Justus
General Manager, Shell Appalachia
Shell is…..
Operating in 80+
countries with 90,000
employees
A multi-national
corporation
Vertically
integrated/diversified
product lines
A globally recognized
brand
Exploration & Drilling
Chemical
Lubricants
Refining
Retail & Sales
Energy
Pipeline &
Transportation
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SHELL AT A GLANCE
“To be the world’s most competitive and innovative energy
company”
Shell by numbers (figures for 2011)
+ 80 countries where we operate
90,000 number of employees
48% of our production is natural gas
18.8 million tons of LNG sold during the year
3.2 million barrels of gas and oil we produce every day
43,000 Shell service stations worldwide
30+ refineries and chemical plants we run
Our businesses
•Upstream explores for and extracts crude oil and natural gas.
•Downstream refines, supplies, trades and ships crude worldwide, manufactures and
markets a range of products, and produces petrochemicals for industrial customers.
•Projects & Technology manages delivery of Shell’s major projects and drives the research
and innovation to create technology solutions.
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ORGANIZATIONAL STRUCTURE
Upstream
Americas
Upstream International
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Exploration
Commercial/new business
LNG
Venture management
Stakeholder management
Sustainable Development
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Finance
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Finance
IT
Investor relations
Strategy
Planning and appraisal
Internal audit
Exploration
Commercial/new business
Unconventionals & Oil
sands
Wind
Venture management
Stakeholder management
Sustainable Development
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HR & Corporate
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HR
Real Estate
Communications
Shell Aircraft
Health
Security
Projects & Technology
Downstream
Refining
Lubricants
Alternative energies & CO2
Chemicals
Trading
Supply and distribution
Retail
Business to business
Legal
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Innovation, R&D
Technical IT
Project execution
Global technical expertise
3rd party services
Safety and environment
Contracting and procurement
Government Relations
Legal
Compliance
Intellectual property
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4
SHELL ACTIVITY
ONSHORE
PRODUCTION FACILITY
Oil
UPSTREAM
Gas
LNG
LIQUEFICATION
PLANT
LNG
REGASIFICATION
TERMINAL
POWER
STATION
OFFSHORE
PLATFORM
Gas
OIL
SANDS
GAS TO
LIQUIDS
PLANT
Oil
BIOFUELS
PLANT
WIND
TURBINES
Energy for industrial
and domestic use
REFINERY
UPGRADER
PLANT
Bitumen
Synthetic
crude oil
Feedstock
Fuels, lubricants and speciality products including
Bitumen and liquefied petroleum gas
CHEMICAL
PLANT
DOWNSTREAM
Petrochemicals used for plastics,
Coatings and detergents
In the U.S., we operate in all 50 states and employ more than 22,000 people.
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SHELL’S ROLE
Shell’s role is to meet our customers’
growing need for reliable, affordable
energy
Our response to the CO2 challenge
focuses on cost effective solutions
available now
Our priorities include:
1.Natural Gas
2.Biofuels
3.Carbon Capture
and Storage
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SHELL NORTH AMERICA ONSHORE GAS ASSETS
Shell’s North America
Onshore Gas portfolio
includes about 3.6 million
acres of mineral rights
By year end, gas will
account for around half our
oil and gas production
Appalachia (includes
Marcellus and Utica Shale)
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SHELL’S STAKE IN APPALACHIA
~900K+ acres in the Appalachian Basin
(PA, OH and NY)
Headquarters: Sewickley, PA
350+ Shell staff in PA
Current development focused in Tioga
County; Exploration in other areas
5-7 rigs in operation
75-100 wells planned for 2012
Evaluating feasibility of building a worldclass petrochemical complex
Community involvement, environmental
stewardship and sustainable
development are paramount
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SHELL ONSHORE TIGHT SAND/SHALE OIL & GAS
OPERATING PRINCIPLES
Safety & Well Integrity
Footprint
Shell designs, constructs and
operates wells and facilities in a
safe and responsible way.
Shell works to reduce its
operational footprint.
Water
Community
Shell conducts its operations in a
manner that protects
groundwater and reduces
potable water use as reasonably
practicable.
Shell engages with local
communities regarding socioeconomic impacts that may
arise from its operations.
Air
Shell conducts its operations in a
manner that protects air quality
and controls fugitive emissions.
Copyright of Shell
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NATURAL GAS DEVELOPMENT VALUE CHAIN
Cross-functional disciplines & teams
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Geology
Geophysics
Petrophysics
Reservoir Engineering
Production Engineering
Project Development Engineering
Survey/Mapping
Construction
Drilling
Completions
Road and Lease Construction
Pipeline Construction
Operations
Contracts and procurement
o IT
o Business – Economics, Finance &
Accounting
o Regulatory
o Environment
o Water Management
o Surface Land
o Subsurface Land
o Joint Ventures
o Communications
o Health, Safety, Security &
Environment
o Marketing
o Management
o
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LOCAL CONTENT - 4 KEY INTEGRATED
COMPONENTS
Local Content is the value added in the host jurisdiction through:
 Local
contracting – services, equipment, materials and third party
expenses
 Local
employment – direct and indirect through contractors,
subcontractors and suppliers
 Local
workforce development, including education and training
 Enterprise
development and access to finance
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LOCAL RESIDENT AND LOCAL BUSINESS DEFINED
“Local Resident” means an individual who primarily resides in a selfcontained domestic establishment not located at a work site within the
Local Area and is not in full-time attendance at an educational
institution inside or outside of the Local Area.
“Local Business” means a business enterprise with work execution
capability that generally includes an office and operations center that
enables employment of Local Residents with a permanent domestic
residence and payment of business taxes within the Local Area.
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WHERE DOES LOCAL CONTENT FIT IN?
HSE & SP Control Framework
Social Performance Manual
Mitigating Impacts
Enhancing Benefits
Social Performance Plan
Stakeholder Engagement Strategy
• Stakeholder Engagement Plans
• Community Relations
• Stakeholder Agreements
• Stakeholder Commitments
Local Content Plan
• Workforce development
• Direct and indirect employment
• Business capacity development
and enhancement
• Local contracting opportunities
and guidelines
Social Investment Strategy
• Support license to operate and
license to grow
• Support SP commitment
• Enhance stakeholder
relationships and reputation
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LOCAL CONTRACTING KEY PRINCIPLES – Alignment with SP
Principles
• Provide access to contracting opportunities for Local Businesses to compete on a
Best Total Value basis for contracts without compromising its ability to carry out a
safe, efficient and cost-effective operation
• Zero deviation from Shell General Business Principles
• All businesses to meet Shell’s HSSE standards, as well as other applicable Shell
standards and delivery requirements
• Shell and its contractors will make the sole determination which businesses are
qualified, competitive and who will be awarded contracts
• Give preference to qualified Local businesses amongst otherwise equivalent
proposals on a Best Total Value basis
• Provide timely feedback on procurement results to businesses that were
unsuccessful in a bid process to assist those businesses to become more
competitive for future opportunities
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SHELL LOCAL CONTENT &
DIVERSITY STRATEGY
Brian Hall
Supplier Diversity, Diversity Outreach Specialist, Shell – Houston
Small Business Officer
Asha Luthra
Social Performance Advisor, Shell Appalachia
SHELL’S SUPPLIER DIVERSITY VISION & MISSION
Vision
To have an inclusive business environment that
connects with the globally diverse communities in which
we live and operate.
Mission
To create value and maximize effectiveness locally,
through aggressively identifying, engaging, and
developing mutually beneficial relationships with small,
minority and/or women-owned business enterprises
positively impacting Shell’s bottom line.
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CERTIFYING AGENCIES (National, Regional and
Local)
National Minority Supplier Development Council
www.NMSDCUS.org
 Western PA Minority Supplier Development Council
Women Business Enterprise National Council
www.WBENC.org
 Women’s Business Enterprise Council – Philly
US Small Business Administration
www.SBA.gov
 Small Business Administration – Western PA
 Department of General Services – Western Region/PA
Shell also partners with other local Chambers and Business Development
organizations
All current and future suppliers must register via SHELL’s Supplier Qualification System:
www.shell.com/supplier/qualification
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WHO QUALIFIES AS AN SMWBE?
• Firms that are at least 51% owned, operated and
controlled by an ethnic minority group member, by a
woman, designated as a Small Business with the SBA.
• Firms certified by a local business council/affiliate of
WBENC or NMSDC. Or those certified (self-certified) by the
Small Business Administration.
• ALL current and future suppliers must register via Shell’s
Supplier Qualification System
www.Shell.com/supplier/qualification
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WHO QUALIFIES AS A SMALL BUSINESS
CONCERN?
Definitions in accordance with FAR – Part 2 & 19.001
•
HUB Zone Empowerment – Public Law 104-135
•
Small Disadvantaged Business
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Socially and/or economically disadvantaged individuals
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Service-disabled veteran-owned small business
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Veteran-owned small business concern
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Women-owned small business – FAR 19.001
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Alaska Native Indian small business
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SHELL SUPPLIER PRINCIPLES
In line with our Shell General
Business Principles, we seek to
work with contractors and
suppliers who contribute to
sustainable development and are
economically, environmentally
and socially responsible. The
Shell Supplier Principles provide
a simple and consistent
framework of our expectations for
all our suppliers in the following
areas:
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Business integrity;
HSSE;
Labour conditions and human
rights;
• Social performance.
May 2012
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DIVERSITY – PROCUREMENT TEAM CONTACT
INFORMATION
Debra Stewart, Mgr – Supplier Diversity, Diversity Outreach & Workforce Development
Initiative
[email protected]
Donovan Casanave, Supplier Diversity & Diversity Outreach Specialist
[email protected]
Brian Hall, Supplier Diversity & Diversity Outreach Specialist/Small Business Liaison
[email protected]
Shebra Jones Sutherland, Coordinator, Supplier Diversity, Diversity Outreach
[email protected]
Kristin Fye, Upstream Contracting and Procurement Local Content Coordinator
[email protected]
Debra McCray – Sr. Procurement Analyst, Global Functions Sourcing
[email protected]
Suzane Williams – Procurement Manager/Supplier Diversity, Downstream
[email protected]
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HOW TO DO BUSINESS
WITH SHELL
Kristin Fye
Contracting & Procurement - Local Content
Coordinator
Shell Upstream Americas
PROCESS INSIDE SHELL
 When is the best time to get involved?
1. Need is identified by the business– this happens many
different ways
2. Specifications are determined
3. Research on different solutions completed internally
 Check the internal Supplier Qualification System
 Engage with current contacts in field
 Conduct online research
4. Shell goes to market with RFQ either through online bid or
request sent to specific contractors
5. Results of RFQ is analyzed
6. Contract put in place
7. Work starts
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HOW TO APPROACH SHELL
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Do your research– know where you fit and the industry to
better market yourself
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Visit www.uacontractor.com to identify contacts—not just
procurement!
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Register on the Supplier Qualification System
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Seek out trade shows, supplier events and industry forums
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Be open to partnering with other suppliers
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Ask if there might be subcontracting opportunities
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SUPPLIER READINESS
Potential Suppliers should bring specific knowledge to the relationship
before and after the contract award.
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Know Shell and the Business Unit you best fit in (www.shell.com)
 Be
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alert to changes in strategic direction of the marketplace
Understand where you can fit in the value chain
 What
distinguishes your firm / competitive separation
 Know
your competition-think global
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Leverage your relationship from one business unit to another
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Know critical drivers of cost and value
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SUPPLIER PROFILE
Buyers/sourcing teams are looking for:
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Demonstrated performance and commitment to safety
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Meet safety and insurance requirements
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Match Shell ethics and business principles
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Ability to execute
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Runs business effectively
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Possess size and geographical strength
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SUPPLIER QUALIFICATION SYSTEM (SQS)
What is SQS?
SQS is a single Global tool rolled out in Shell for managing and maintaining qualification of vendors. It will fulfill the
following primary objectives:
 Collect and provide all vendor qualification information (including HSSE, Technical, Financial, CSR, E&C)
 Display supplier qualification status, banding and relevant documentation
 www.uacontractor.com – SQS link on left
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Q&A
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