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JUNE 2015 INVESTOR PRESENTATION – Shell

Shell · Jun 23, 2015 · 59 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 1
    BALANCING GROWTH AND RETURNS Alaska Shareholder Field Trip ROYAL DUTCH SHELL 23-24 JUNE 2015 Copyright of Royal Dutch Shell plc 23 June, 2015 1
  2. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 2
    SHELL OVERVIEW J J TRAYNOR EVP INVESTOR RELATIONS Copyright of Royal Dutch Shell plc 23 June, 2015 3
  3. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 3
    STRATEGY AND INVESTMENT PRIORITIES Grow cash flow + deliver competitive returns Competitive financial Capital efficiency Project delivery performance Capital allocation by global themes ENGINES GROWTH PRIORITIES LONGER…
  4. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 4
    EXECUTING A CONSISTENT AND SUCCESSFUL EXPLORATION STRATEGY Time to Prospect development size 2015 spend (years) (million boe) Long-term potential for ARCTIC 15+ 500 industry Build-up of acreage in FRONTIER 10+ 250…
  5. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 5
    ENERGY TRANSITIONS 2050 outlook Long-term energy supply mix Million boe per day Population increases from 7 to 9 billion Enabled by cheap and reliable energy 400 +50% Realities 300 Requirement to mitigate climate change +50%…
  6. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 6
    INTRODUCTION TO THE ARCTIC REGION ANN PICKARD EVP UA ARCTIC Copyright of Royal Dutch Shell plc 23 June, 2015 7
  7. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 7
    WHY ARCTIC Resource Potential Arctic 22% of undiscovered, technically recoverable resources in the world Majority located offshore Alaska Outer Continental Shelf (OCS) 27 billion barrels of oil 132 trillion cubic feet of natural…
  8. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 8
    ARCTIC BASINS Multiple basins have vast potential US Chukchi & Beaufort Russia - Sakhalin White Arctic, up to 50 m Sub-Arctic but ice, Most have limited data, highly water depth shallow water uncertain estimates Russia - Chukchi…
  9. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 9
    POLAR PERSPECTIVE OF ALASKA AND THE ARCTIC = Well 85 = Number of wells Burger Prospect Dutch Harbour Copyright of Royal Dutch Shell plc 23 June, 2015 10
  10. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 10
    CHUKCHI AND BEAUFORT LEASE SITES Chukchi Sea Beaufort Sea Copyright of Royal Dutch Shell plc 23 June, 2015 11
  11. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 11
    SHELL INVESTMENT IN ALASKA 2015 plan: 1.4bln spend Lease expiry: Chukchi: 2020 Beaufort: generally 2017 (two licenses - 2019) Shell equity: Chukchi 100% Beaufort: mostly 100% (some JV areas) Capping Stack Two Arctic drilling…
  12. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 12
    ALASKA STRATEGY: OPERATING EXCEPTIONALLY WELL Protect reputation Find oil Be efficient Maximize the (build trust) productivity in the Arctic, 1 2 3 one day at a time, without harm to people HOW BEHAVIORS and environment…
  13. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 13
    PRUDENT ARCTIC DEVELOPMENT NPC Study DOE Commissioned 105 Organizations 206 People Copyright of Royal Dutch Shell plc 23 June, 2015 14
  14. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 14
    ALASKA OIL INDUSTRY MICHAEL MAHAFFIE, MANAGER ALASKA EXPLORATION Copyright of Royal Dutch Shell plc 23 June, 2015 15
  15. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 15
    ALASKA OIL + GAS Alaska oil and gas industry1 accounted for a third of all wage and salary jobs in Alaska in 2013: 111,000 jobs 6.5 billion in wages A portion of oil revenues was set aside in 1976 for future generations. The Alaska…
  16. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 16
    ALASKA NORTH SLOPE OIL + GAS Estimate North Slope volumes (excluding OCS) 22 billion bbl oil / 35 TCF gas1 ENI, Nikaitchuq Production 2011 BP, Northstar Encana Antares Production 2001 McCovey 2002 Exxon 1985 BP, Endicot Shell…
  17. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 17
    ALASKA PRODUCTION HISTORY 1977 TAPS 2001 BP Northstar 1957 Swanson River completed 1987 BP/Exxon field, Beaufort Sea, oil field, Kenai Endicott Field, becomes operational Peninsula Beaufort Sea, 1963 Shell drills first 1981 - Kuparuk…
  18. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 18
    EXPLORATION WELLS (PRE-2012) IN THE ALASKA OCS CHUKCHI SEA BEAUFORT SEA Popcorn 89-90 Crackerjack 90-91 Burger 89-90 Sandpiper 86 Corona 86 Klondike 89 Seal 84-85 Number of wells: Tern 82-83,87 Amoco (4) Arco (7) BP/SOHIO…
  19. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 19
    ALASKA INDUSTRY OFFSHORE DEVELOPMENTS BP Northstar, Beaufort Sea, 2001 BP Endicott, Beaufort Sea, 1987 Offshore exploration and production underway Artificial island developments ENI Nikaitchuq, Beaufort Sea, 2011…
  20. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 20
    A FAMILIAR FRONTIER Shell operated in Alaska for 50 years until 1998 First royalty payer to State of Alaska Extensive experience and operations in Cook Inlet In the 1980s drilled numerous wells in Chukchi & Beaufort Seas…
  21. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 21
    EXPLORATION AND PRODUCTION OVERVIEW MICHAEL MAHAFFIE, MANAGER ALASKA EXPLORATION Copyright of Royal Dutch Shell plc 23 June, 2015 22
  22. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 22
    EXPLORATION TO PRODUCTION DATA EXPLORATION APPRAISAL DEVELOPMENT OPERATIONS ACQUISITION DRILLING DRILLING PHASE 2-4 years 2-4 years 2-4 years 4-10 years 20+ years Copyright of Royal Dutch Shell plc 23 June, 2015 23
  23. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 23
    REGIONAL BASEMENT MAP FOR THE ALASKA OFFSHORE 5 Historical Wells drilled in Oil the Chukchi (1989 1991) Gas Oil Shows Mix Gas/Oil Alpine Field Pt McIntyre 450 MMBO REC 450 MMBO REC Basement High Kuparuk Field Basement 3 BBO…
  24. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 24
    WHAT ARE THE STEPS TO BEGIN EXPLORATION Understanding the ingredients that define a Petroleum System Do we have a trap/seal (a geologic container that can accumulate oil & gas) Can we demonstrate charge Are source rocks present…
  25. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 25
    SEISMIC ONE OF EXPLORATIONS TOOLS Seismic is used to create an image of the subsurface. Source Receiver Receiver This helps us to determine whether the petroleum elements exist to support Exploration Source Receivers…
  26. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 26
    EXPLORATION: HOW WE PUT THE STORY TOGETHER Seismic Image Rock Record Unflattened Geologic Story Copyright of Royal Dutch Shell plc 23 June, 2015 27
  27. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 27
    ALASKA EXPLORATION OVERVIEW MICHAEL MAHAFFIE, MANAGER ALASKA EXPLORATION Copyright of Royal Dutch Shell plc 23 June, 2015 28
  28. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 28
    SHELL ALASKA 1989 - 2008 1989-1991 2005-2007 Shell participates in 5 Shell re-enters the Alaska exploration wells in the OCS Acquires leases in Chukchi the Beaufort Sea 1992 Shell leaves Alaska and focuses exploration in…
  29. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 29
    CHUKCHI SEA Exploration Wells 1989-1991; Burger gas discovery Petroleum system proven; known pressures and temperatures Potential for oil exploration drove industry back into the play in 2008 Copyright of Royal Dutch Shell plc 23…
  30. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 30
    CHUKCHI BASIN: THE PETROLEUM SYSTEM ELEMENTS REVEALED Basement structure map offshore Alaska Petroleum system elements Basement Basement High High Oil Gas Basement Oil Shows Low Mix Gas/Oil Burger Line: 86-WES-6075CH…
  31. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 31
    WHAT IS BURGER Simple 4-way structural closure Known & calibrated reservoir story Crest of trap contains a large gas discovery key resv interval JU Burger Line: 86-WES-6075CH Copyright of Royal Dutch Shell plc 23 June,…
  32. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 32
    WHAT DO WE KNOW TODAY Burger is a large structure Confirmed Petroleum System 15 Miles across Quality reservoir & seal Closure area = 400 sq miles Excellent gas saturations Strong oil shows area of closure Lake Lorraine…
  33. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 33
    EXPLORATION CRITICAL SUCCESS FACTORS FOR OPERATING EXCEPTIONALLY WELL Safely drill and evaluate confidential exploration wells to TD to discover commercial oil Acquire Logging-While-Drilling (LWD) & Rock Data 36 22 14 Obtain…
  34. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 34
    POTENTIAL ALASKA OFFSHORE EXPLORATION AND DEVELOPMENT TIMELINE 3 to 7 years 3 to 5 years 2 to 4 years 4 to 8 years Exploration Preliminary Construction & ACQUIRE Appraisal/feasibility/ System design Detailed installation LEASES…
  35. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 35
    POTENTIAL DEVELOPMENT YEAR ROUND ACTIVITY Long term development options in case of discovery Gravity Based Structures designed to withstand winter ice Ice gouge Copyright of Royal Dutch Shell plc 23 June, 2015 36
  36. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 36
    2012 DALE SNYDER VP ALASKA OPERATIONS Copyright of Royal Dutch Shell plc 23 June, 2015 37
  37. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 37
    2012 SEASON HIGHLIGHTS In 2012 Shell obtained the necessary permits and successfully mobilized the Discoverer and Kulluk drilling units. Operations in Beaufort Sea and Chukchi Sea Encountered poor weather, ice conditions, operating…
  38. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 38
    CHANGES SINCE 2012 Improved activity planning New integrated risk management process Renewed focus on contractor management and oversight Strengthened organization Upgraded assets Bolstered marine assurance processes 2015…
  39. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 39
    OPERATIONAL READINESS 2015 PLANS DALE SNYDER, VP ALASKA OPERATIONS MARK GUADAGNINI, VP ARCTIC MARITIME & LOGISTICS Copyright of Royal Dutch Shell plc 23 June, 2015 40
  40. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 40
    ALASKA DRILLING SEASON Limited drilling window Short ice free season Permits Ice free period Typical Ice Year Copyright of Royal Dutch Shell plc 23 June, 2015 41
  41. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 41
    DRILLING RIGS Polar Pioneer Transocean semi-submersible drilling rig, designed specifically to drill in harsh climates Extensive experience in Norwegian sector, including Arctic exploration wells Recently completed…
  42. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 42
    2015 LOGISTICS RESOURCES MAP Copyright of Royal Dutch Shell plc 23 June, 2015 43
  43. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 43
    MOBILIZATION IN PACIFIC NORTH WEST Polar Pioneer arrives in Seattle (May 14, 2015) Polar Pioneer arrives in Seattle on May 14, 2015 Copyright of Royal Dutch Shell plc 23 June, 2015 44
  44. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 44
    OIL SPILL PREVENTION AND RESPONSE DONALD JACOBSEN, VP WELLS ARCTIC DALE SNYDER, VP ALASKA OPERATIONS Copyright of Royal Dutch Shell plc 23 June, 2015 45
  45. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 45
    ALASKA: SHALLOW WATER, LOW PRESSURE Normal Pressure Near Normal Pressure High Pressure Very High Pressure Copyright of Royal Dutch Shell plc 23 June, 2015 46
  46. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 46
    OIL SPILL CONTROLS CONTROL & BARRIERS: RESPONSE & RECOVERY: 1. Equipment selection 1. Source control: 2. Well design & construction Capping stack 3. Bottom hole pressure control Arctic containment system 4. Operational controls…
  47. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 47
    CAPPING STACK Capping stack First response if BOPs fail Shell commissioned equipment Capping Stack deployment test safely and successfully completed Copyright of Royal Dutch Shell plc 23 June, 2015 48
  48. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 48
    ARCTIC CONTAINMENT SYSTEM Arctic Containment System First operational subsea dome oil collection and processing unit Rigorous evaluation, upgrades and testing since 2012 ACS was successfully deployed for Bureau of Safety and…
  49. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 49
    SHELL ALASKA OIL SPILL RESPONSE ANIMATION https://www.youtube.com/watchv=YAKSgZHa4G0 Animation This animation is publically available at https://www.youtube.com/watchv=YAKSgZHa4G0 Copyright of Royal Dutch Shell plc 23 June,…
  50. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 50
    STAKEHOLDERS: LICENSE TO OPERATE LAURIE SCHMIDT, VP ALASKA MANIKSAQ BAUMGARTNER, STAKEHOLDER MANAGER PETER SCOTT, COMMUNICATIONS MANAGER ALASKA Copyright of Royal Dutch Shell plc 23 June, 2015 51
  51. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 51
    SHELL ALASKA 2005+ 2005 2008 2010 2014 Shell Re-enters the Alaska Drilling stopped due to BP Macondo causes a halt 9th Circuit reverses AK Federal OCS Acquires leases in court challenges. for offshore drilling District Court…
  52. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 52
    STAKEHOLDER PROGRESS SINCE 2005 Legislative Environment Regulatory Environment Legal Environment Stakeholder Environment Changed Federal Air Creation of Inter- Injunction Against Creation of Arctic Permitting from EPA to Agency…
  53. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 53
    ARCTIC IUPIAT OFFSHORE: FROM NEGOTIATION TO CREATION Shell signed an agreement with Arctic Iupiat Offshore , LLC (AIO) on July 31 2014 Members Arctic Slope Regional Corporation (ASRC) and six North Slope village Corporations…
  54. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 54
    2015 REGULATORY REQUIREMENTS Lease Sale 193 Record of Decision Exploration Plan (EP) Development - BOEM Incidental Harassment Authorization (IHA) NOAA National Pollution Discharge Elimination System Authorization (NPDES) Oil Spill…
  55. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 55
    SCIENTIFIC SUPPORT AND COLLABORATION Permitting support Establish scientific basis to support permit applications Establish and implement monitoring programs required by permits Collect and analyze data for regulatory reporting…
  56. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 56
    SOCIAL PERFORMANCE IN ALASKA Potential social impacts to local communities and residents are managed through an integrated system of programs, which include: Routine & Transparent Stakeholder Engagements to maintain and promote strong…
  57. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 57
    SOCIAL INVESTMENT Over 10 mln in social investment programs GeoFORCE Four-year high school STEM program Kaktovik Community Foundation Building community ice cellar for proper food storage and safety Ilisagvik College Quality…
  58. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 58
    NORTH SLOPE STAKEHOLDERS Complex familial and political hierarchy on North Slope Rapid change over one generation North Slope Borough: largest Borough in Alaska, represents Small population, vast distances over 15% of total land of…
  59. JUNE 2015 INVESTOR PRESENTATION – Shell – slide 59
    Copyright of Royal Dutch Shell plc 23 June, 2015 60

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