ROYAL DUTCH SHELL PLC LEADER IN GLOBAL GAS

Size: px

Start display at page:

Download "ROYAL DUTCH SHELL PLC LEADER IN GLOBAL GAS"

Charity Warren
6 years ago
Views:

1 ROYAL DUTCH SHELL PLC LEADER IN GLOBAL GAS

DEFINITIONS AND CAUTIONARY NOTE Resources: Our use of the term resources in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United

2 DEFINITIONS AND CAUTIONARY NOTE Resources: Our use of the term resources in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "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 announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. 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 Shell and the Shell Group 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", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, 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 announcement 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 factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2012 (available at and ). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, 5 March Neither Shell nor any of its subsidiaries nor the Shell Group 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 announcement. Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S. investors are urged to consider closely the disclosure in Shell's Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC

out of energy poverty; with higher living

to produce each dollar of wealth 3 times

3 THE NEW ENERGY FUTURE BY 2050 RISING ENERGY DEMAND, SUPPLY PRESSURE, CLIMATE CHANGE 9 billion people, 75% living in cities (2 billion more than today) 2 billion vehicles (800 million at the moment) Many millions of people will rise out of energy poverty; with higher living standards energy use rises Energy demand could double from its level in while CO 2 emissions must be half today s to avoid serious climate change Twice as efficient, using half the energy to produce each dollar of wealth 3 times more energy from renewable sources Copyright of Royal Dutch Shell plc 3

GLOBAL ENERGY OUTLOOK DEMAND GROWTH Energy demand outlook in

Wind Solar Other renewables Nuclear Coal 200 Energy demand

doubling 2010-2050 0 1980 1990 2000 2010 2020 2030 2040 2050

4 GLOBAL ENERGY OUTLOOK DEMAND GROWTH Energy demand outlook in million boe/d Shell activities Oil Natural gas Biomas Wind Solar Other renewables Nuclear Coal 200 Energy demand +60% Hydrocarbons dominate outlook 100 Gas demand doubling Source: IEA s World Energy Outlook 2012 MAJOR OPPORTUNITY FOR SHELL 4

INDUSTRY-LEADING INTEGRATED GAS PORTFOLIO GLOBAL LNG PORTFOLIO 22 MTPA 1 ON STREAM LNG Canada Green corridor GTT On stream

Wheatstone Gorgon Abadi Sunrise Arrow 7 MTPA UNDER CONSTRUCTION + 33% 20+ MTPA OPTIONS SHELL 7% GLOBAL MARKET SHARE SHELL

2 mtpa equity capacity from Repsol LNG acquisition which is subject to completion SHELL LNG LEADERSHIP 1 Year end mtpa 30 20

5 INDUSTRY-LEADING INTEGRATED GAS PORTFOLIO GLOBAL LNG PORTFOLIO 22 MTPA 1 ON STREAM LNG Canada Green corridor GTT On stream Repsol LNG (subject to completion) Under construction Options GTL Great Lakes GTT Elba LNG Gulf Coast GTT Prelude Browse Wheatstone Gorgon Abadi Sunrise Arrow 7 MTPA UNDER CONSTRUCTION + 33% 20+ MTPA OPTIONS SHELL 7% GLOBAL MARKET SHARE SHELL GLOBAL LNG CAPACITY GROWTH 1 mtpa ~2020+ On Under Option stream construction s 1 excludes 4.2 mtpa equity capacity from Repsol LNG acquisition which is subject to completion SHELL LNG LEADERSHIP 1 Year end mtpa projects on stream or under construction ~90% long-term contracted ~80% of portfolio oil price linked Shell Exxon Chevron BG Total BP

6 GAS VALUE CHAINS SHAPING THE FUTURE OF ENERGY THROUGH INNOVATION 6

7 MAKING FLNG A REALITY 7

outlook Japan landed LNG Price 2010-12 Cost Structure Landed Cost UK NBP 2010-12 2005 2006 2007

8 LNG PRICING CONSIDERATIONS LNG PRICE DYNAMICS US EXPORTS REGIONAL GAS PRICES $/mmbtu 25 Tokyo Bay UK $/mmbtu Cost Structure Liquefaction + transport costs HH outlook Japan landed LNG Price Cost Structure Landed Cost UK NBP Henry Hub (US) National Balancing Point (UK) Brent Japan Landed LNG Price 8

NORTH AMERICA LNG POTENTIAL INDUSTRY LNG EXPORT PLANS Kenai LNG Valde z Canada + US West Coast potential 2025: ~30 mtpa LNG Production Canada LNG Kitimat BC LNG LNG

USA GoM + East Coast potential 2025: ~130mtpa Elba Island Cove Point NORTH AMERICAN LNG EXPORT DEVELOPMENT mtpa 140 120 100 80 60 40 Bcf/d 15 10 5 MAJOR OPPORTUNITY

9 NORTH AMERICA LNG POTENTIAL INDUSTRY LNG EXPORT PLANS Kenai LNG Valde z Canada + US West Coast potential 2025: ~30 mtpa LNG Production Canada LNG Kitimat BC LNG LNG export facility application filed Sanctioned Jordan Cove Oregon Freeport Corpus Christi Gulf Coast Lavaca Bay Sabine Pass Lake Charles Cameron Gulf LNG Port Arthur USA GoM + East Coast potential 2025: ~130mtpa Elba Island Cove Point NORTH AMERICAN LNG EXPORT DEVELOPMENT mtpa Bcf/d MAJOR OPPORTUNITY FOR AMERICA GAS INDUSTRY PERMITTING > $300 BLN INDUSTRY FINANCING REQUIREMENT PRICE AND MARKET CONSIDERATIONS Total NA application Sanctioned projects 9

10 LEADER IN GLOBAL GAS SHELL POSITIONED FOR RAPID & PROFITABLE GAS GROWTH International Gas Value Chains Deep Relationships with key customers Global Presence + portfolio approach 10

11 QUESTIONS AND ANSWERS 11

REGIONAL GAS DEMAND DEVELOPMENT ASIA DEMAND Bcf/d NORTH

Malaysia India China Taiwan Korea Japan N.A.

Transport EUROPE DEMAND Bcf/d MIDDLE EAST DEMAND Bcf/d Europe

13 REGIONAL GAS DEMAND DEVELOPMENT ASIA DEMAND Bcf/d NORTH AMERICA DEMAND Bcf/d Asia Supply Other Asia Other SE Asia Malaysia India China Taiwan Korea Japan N.A. Supply Residential & Commercial Other Power Industrial Transport EUROPE DEMAND Bcf/d MIDDLE EAST DEMAND Bcf/d Europe Supply Residential & Commercial Power Industrial UAE Saudi Arabia Iraq Iran Oman Israel Other ME

STRATEGIC WORKFORCE PLANNING AT ROYAL DUTCH SHELL (RDS)

STRATEGIC WORKFORCE PLANNING AT ROYAL DUTCH SHELL (RDS) EAPM Congress Manchester November 2013 Dilek Kizilcik, Taher Ebeid Global Talent Advisor November 2013 3 DEFINITIONS AND CAUTIONARY NOTE The companies