Socially responsible investors briefing in London, April 14, 2015

1Copyright of Royal Dutch Shell plc 14 April, 2015
ANNUAL ROUNDTABLE FOR
SOCIALLY RESPONSIBLE
INVESTORS
14 APRIL 2015
ROYAL DUTCH SHELL PLC

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.

SOCIALLY RESPONSIBLE INVESTORS
BEN VAN BEURDEN
CHIEF EXECUTIVE OFFICER

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

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

AGENDA
Ben van Beurden and Chad Holliday
Climate change:
Harry Brekelmans and Angus Gillespie
Q+A
Coffee break
Panel sessions Q&A (40 min each, 5 minutes to rotate):
Drinks
13:00 – 13:45
13:45 – 14:00
14:00 – 14:45
14:45 – 15:10
15:15 – 17:30
17:30 – 18:00

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).

TRANSPARENCY
Sustainability reporting
Revenue transparency
Nigeria spills website
Oil sands performance report
Nigeria briefing notes
CDP
Sustainability report
1997 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SHAREHOLDER RESOLUTION: CLIMATE CHANGE DISCLOSURE
RESOLUTION INFORMATION REQUEST 2013 2014 2015
Ongoing emissions management   
Asset portfolio resilience to post-2035
scenarios
 
Low-carbon R&D and investment strategies  
Strategic KPIs and executive incentives 
Public policy position 
 Disclosed by Shell
 Board decision to support shareholder resolution at the 2015 AGM

CHAD HOLLIDAY
NON-EXECUTIVE DIRECTOR AND
CHAIR OF THE CORPORATE AND SOCIAL
RESPONSIBILITY COMMITTEE

CORPORATE AND SOCIAL RESPONSIBILITY COMMITTEE
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.
CSRC MEMBERS
CHARLES HOLLIDAY
Chair of CSRC
GERRIT ZALMPATRICIA WOERTZSIR NIGEL SHEINWALD

SITE VISITS
2014 Activity
Western Canada
 Onshore oil and gas
 Oil sands operations
 Canada LNG potential
2015 Plans
 Brazil biofuels
 GoM operations
 Separate visits:
 Moerdijk, Appalachian tight gas, Peterhead
Kitimat Tight gas, Appalachia
 Social and environmental considerations incorporated through all stages of major projects

STRATEGIC KPIS AND EXECUTIVE INCENTIVES
5% weight
Personal Safety
5% weight
Process Safety
30% weight
CFFO
50% weight
Operational Excellence
10% weight
Safety
20% weight
Sustainable Development
10% weight
Sustainability
2% weight
Water use
4% weight
Oil Spill volumes
4% weight
Energy Intensity
2015 EXECUTIVE BONUS STRUCTURE

PARTNERSHIPS + ENGAGEMENT
 Leverage outside expertise
 Scientific organizations
 NGOs
 Governmental bodies
 Long-term partnerships
 Strengthened governance
Wetlands International IUCN The Nature Conservancy EarthWatch Institute

WORKING WITH OTHERS
 $250 million endowment from Shell
 Independent charity to support economic
development
 Example: Global Alliance for Clean Cookstoves
 100 million households by 2020
 3rd party certification
 Collaboration with environmental organizations
 Shell certified in 2015
Shell Foundation Center for Sustainable Shale Development

BEN VAN BEURDEN

2050 outlook
 Population increases from 7 to 9 billion
 Enabled by cheap and reliable energy
Realities
 Requirement to mitigate climate change
 Oil supply -70% by 2030 without new investment
 Key role of gas & CCS
ENERGY TRANSITIONS
Long-term energy supply mix
Million boe per day
Gas
Biomass
Wind
Coal
Nuclear
Other renewables
Solar
Shell activities
Oil
 Energy transitions underway
+50%
+50%

STRATEGY AND INVESTMENT PRIORITIES
1 Iraq, Nigeria onshore (SPDC), Kazakhstan, Arctic, heavy oil
Grow cash flow + deliver competitive returns
Competitive financial
performance
Project deliveryCapital efficiency
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
Capital allocation by global themes

INVESTMENT PRIORITIES
1 Resources plays, Majnoon, infill drilling
Growth priorities: 40%
Longer term: 25%
Engines: 35%
2015
organic capital
investment
50%
40%
Pre-FID large
project options
Base
Short-cycle
projects1
Post-FID large
projects
Conventional
exploration
2015
organic capital
investment
10%
 Care and maintain activities form base of capital investment
 Safe and reliable operations remain our priority

HSSE + STRATEGY
 No harm to people
 No leaks
 12 Life saving rules
Goal Zero
 Early identification of SD
expertise required
 Management framework
for SD in new projects
Opportunity realisation
Strategy: balancing growth and returns
Competitive financial
performance
Project deliveryCapital efficiency
Health, safety, security and environment key to delivery of strategy

Identify & Assess Select Define Execute Operate
Decommission
& restore
SUSTAINABILITY IN PROJECT LIFE CYCLE
 Sustainability objectives
 Initial HSE risk analysis
 Baseline surveys
 Local content strategy
 Environmental, social &
health management plan
 HSE management system
 Performance monitoring
 Decommissioning plan
FEED FID On streamExplore Feasibility study Ceased production
 Environmental, social & health
impact assessment e.g.
 Greenhouse gas
 Biodiversity
 Water
 Social performance
 Safety design and construction
studies
 Local content plan
Stakeholder management

2014 SAFETY PERFORMANCE
Injuries – TRCF/million working hours
Goal Zero on safety
Injuries – TRCF/million working hours
Spills - operational
Volume in thousand tonnes
Energy intensity – refineries
Energy Intensity Index (EEITM)
Process safety
Number of incidents
million working hours
Working hours (RHS)TRCF
 HSSE priority
 Performance + transparency
Tier 1 incidents Tier 2 incidents

CONTRACTOR SAFETY + MANAGEMENT
Monitor performance
and delivery including
gap closures agreed in
the HSSE plan
Green
Amber
Red
Technical
HSSE
Commercial
Assessment Evaluation Contract Management
Goal Zero
Number of fatalities  Contractors represent 75% of working
hours

ONGOING EMISSIONS MANAGEMENT
* Indirect emissions were not recorded before 2009
Emissions
Million tonnes CO2 equivalent
Energy intensity
Gj/tonne (energy required to produce a tonne of oil equivalent)
Upstream excl. Oil sands Refining Chemicals
index
www.shell.com/ghg
Million tonnes hydrocarbon flared
 2015 endorsed the World Bank’s Initiative to
Reduce Global Gas Flaring
 "Zero Routine Flaring by 2030"
Flaring performance

WATER MANAGEMENT
Dawson Creek water reclamation, Groundbirch
Shell fresh water withdrawn
Million cubic metres
 Water regulation evolving rapidly
 Water management plans
 water scarce areas
 future water scarce areas
Centre of Excellence in Bangalore:
 Integrated project delivery
 Technical support
 Water R&D

REDUCING ONSHORE NIGERIA FOOTPRINT
Restructuring onshore footprint
 2010 – 2015 divested 11 OMLs
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
Nigeria onshore portfolio
Concessions – SPDC Legal
Divested Concessions
Major Rivers/Sea
FIDs
Legend
OML4
OML40
OML41
OML38
OML42 OML34
OML30
OML26
OML21
OML20
OML79
OML43
OML27
OML28
OML31
OML35
OML46
OML32
OML36
OML23
OML11
OML29
OML18
OML72
OML24
OML33
OML25
OML77 OML74
OML71
Forcados Yokri
Integrated project OML45
Southern Swamp
Associated Gas
Gbaran Ubie Phase 2
OML22 OML17
TNPL

NIGERIA: SPDC JOINT VENTURE PERFORMANCE
*SPDC = 30% Shell, 55% NNPC, 10% Total, 5% Agip; all data on 100% basis unless stated
2014 overview
 Widespread oil theft remains a challenge
 0 fatalities, 19 kidnappings
Production
k boe/day (SPDC)
Illegal fitting on NCTL at Opomakri, January 2015
SPDC* spills
Thousand tonnes
volume of operational spills number of operational spills >100kg (RHS)
volume of sabotage spills number of sabotage spills >100kg (RHS)
#

ALASKA UPDATE
Noble Discoverer
Transocean Polar Pioneer
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

CANADA UPDATE
 13 mtpa in FEED (100% capacity)
 Community advisory group
 First Nations visit Oman LNG 2014
 Environmental Assessment Certificate application
 Targets oil sands emissions
 Expected start up 2015
 1mtpa CO2
LNG Canada Quest Carbon Capture and Storage

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

CLIMATE CHANGE + LOW CARBON ACTIVITY
Gas Energy Efficiency
Biofuels Carbon Capture & Storage

CLIMATE CHANGE
HARRY BREKELMANS
DIRECTOR PROJECTS AND TECHNOLOGY

PROJECTS AND TECHNOLOGY AT SHELL
 Field development planning
 Project execution
 Technical Services
 Research & Development
 Safety & Environment
 Contracting & Procurement
Projects and Technology in numbers:
 14,000 staff
 323 patent applications
 $1.2 billion R&D spend in 2014
 Three dedicated technology centres
 Amsterdam, Houston, Bangalore

SHELL ENERGY SCENARIOS
Energy demand by source
Exajoules
 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
Oil
Gas
Biomass/Biofuels
Wind
Coal
Nuclear
Other Renewables
Solar
2000 2030 2060

0
10
20
30
40
50
2000 2020 2040 2060 2080 2100
ENERGY-RELATED CARBON EMISSIONS: SCENARIOS
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
Shell and IEA scenarios1 Life-cycle CO2 intensity of electricity generation
CO2 equivalent/ KWh2GtCO2/year
Oceans Mountains
Current policies New policies 450 ppm
 Shell has to plan in a range of possible futures
 IEA 2° C scenario is normative

ENERGY TRANSITIONS
Example: Germany electricity consumption (by source)
EJ/Year
 Shift to lower carbon energy system
 Dynamic, policy-driven changes
 Local and global trends
Oil
Biomass Gasified
Nuclear
Natural Gas
Biofuels
Biomass/Waste Solids
Hydro-electricity
Coal
Wind
Solar
Other renewables
Geothermal

STRANDED ASSETS HYPOTHESIS IGNORES SUPPLY + DEMAND REALITIES
Oil demand & supply
million barrels of oil per day
 Transport underpins oil demand,
despite electric vehicle growth
Natural decline
Oceans
Mountains
IEA current policies
IEA new policies
IEA 450
 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

DIRECT EMISSIONS MANAGEMENT
 GHG emissions plans in both design phase and
operation of assets
 New projects include energy efficient design
 Amal steam using renewables for enhanced oil
recovery
 Glasspoint
Design and operations Future energy technology

INDIRECT EMISSIONS MANAGEMENT
FLNG Clean fuels
CCS LNG for transport

SHELL RESEARCH + DEVELOPMENT
Total R+D spend
$mln
Shell Peer group
Significant R+D spend
 >$1bn year since 2007
 Averaging ~15% low-carbon R+D
Full size hydraulic test rig, The Netherlands

Mongstad OtwayCansolv
Offshore
(50 MW net)
Raizen 2G
Iogen cellulose ethanol
H2 network
(Germany)
2 B Energy
Glasspoint
Solar EOR
Westhollow research centre
“cellulosic biofuels”
LOW CARBON R+D AND INVESTMENT STRATEGIES
FEED
FID
On streamCCS
Biofuels
Solar
Gorgon
(3-4 mtpa)
Quest
(>1 mtpa)
Peterhead (1 mtpa)
Raizen 1G
(sugar cane ethanol)
Onshore
(450 MW net)
Wind
R&D
Showa shell
PV manufacture
Alternative
energy
carriers
Define Execute OperateTechnology Efforts
Shell Technology
Ventures
Technology demonstration/research
Future energy
technologies
Used in Shell operations
Solar PV
Commercial operation*
Gas
LNG 24mtpa GTLLNG 7.4mtpa
LNG 6.5mtpa
LNG 7.7mtpa
Exploration
B
C
A
* Volumes in Shell share

CLIMATE CHANGE
ANGUS GILLESPIE
VICE PRESIDENT CO2

SHELL GROUP CO2
Group CO2 function – what we do
CO2 research and analysis
Policy and advocacy
Implementation
 Includes CCS
CO2 strategy
CO2 management framework
Regular assessment of CO2 exposure since 2007
Competitive CO2 positioning
Portfolio CO2 emissions, intensity, costs
CO2 screening value of $40 per tonne base case
Long-term assessment of where mitigation or
adaptation might be required

PROJECT ECONOMICS EXAMPLE
NPV analysis: example NPV sensitivities: example
Shell project screening values
 $40 / tonne CO2e
 $70-$110 / bbl Brent oil
 $3-$5 / mmbtu Henry Hub gas
 Future oil, gas and carbon price sensitivities are incorporated in project economics for all Shell projects
-16
-12
-8
-4
0
4
8
12
-4
-3
-2
-1
0
1
2
3
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
$ /yr $ cumulative
Undiscounted Cumulative cashflow
Discounted Cumulative cashflow
Annual cashflow
Base NPV
(inc $40/t CO2)
Oil Price
CO2 price
Capex
Opex
Recovery factor
+ impact- impact

SHELL AND IEA PRICE ASSUMPTIONS
Europe CO2 cost
$/tonne
Oil price
$/barrel
Shell Planning
IEA “Current Policies”
IEA “New Policies”
Shell base case
IEA “450”

ASSET PORTFOLIO POTENTIAL RESILIENCE TO SCENARIOS
Oil price effect
% difference in NPV
vs Shell $90 scenario
CO2 cost effect
% difference in NPV
vs Shell $40/ tonne scenario
Combined cost effect
% difference in NPV
Strategic
theme
Downstream
Engine
Upstream
Engine
Integrated
Gas
Deep
Water
Resource
Plays
Future
Opportunities
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

BEN VAN BEURDEN

Q&A
14 APRIL 2015

14 APRIL 2015
BACKUP

HUMAN RIGHTS
 Founding member of UN Global Compact.
 Collaboration with Danish Institute of Human Rights
 Implementing Voluntary Principles on Human Rights since 2000
INDUSTRY
COOPERATION
Human Rights Due Diligence
Human Rights & Impact
Assessment
Grievance Mechanisms
POLICY
COMMITMENT
Business
Principles
Shell Code of
Conduct
HSSE & SP Control
Framework
Supplier
Principles
OBJECTIVE
 Due diligence to avoid infringements of rights
 Be able to ‘know and show’ systems are effective
 Access to grievance mechanisms for stakeholders
SHELL FOCUS
AREAS
Governance: HSSE SP Exec & Human Rights Working Group
Contracting &
Procurement
Human Resources Security Social Performance
Partnerships: Danish Institute for Human Rights,
Consensus Building Institute

ASSET INTEGRITY AND PROCESS SAFETY
PREVENTING AND MITIGATING MAJOR SAFETY INCIDENTS
Goal Zero: No Harm, No Leaks Assets are safe and we know it
TOP EVENT
THREATS
CONSEQUENCES
Leadership
behaviours
Effective
design and
application
of barriers
Standards and processes Motivated, competent
people
Continuous improvement
Control barriers Recovery measures
Plan
Do
Act
Check
1
3 4 5
2

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

GRONINGEN EARTHQUAKES – NETHERLANDS GAS
force: 0.1–1.0 3.5 and higher
Key focus areas
Study work and hazard risk assessments
Innovative collaboration
Intensive stakeholder management and
dialogues
Government decisions taken
Production restriction
€1.2bn Mitigation programme
Loppersum
2012-2014 Earthquakes
0 10 20km
www.namplatform.nl

NIGERIA: SHELL ENVIRONMENTAL PERFORMANCE
Remediation
# of spills sites*
*includes 125 sites from 1969-1993 in Ogoniland confirmed during decommissioning in 2013
All data on a Shell operated basis
Sites requiring remediationNumber of spills in year (all causes)
Illegal fitting on 28” TNP at Bodo West, Feb 2015

IRAQ UPSTREAM
 Shell 44%, started up in 2013
 Largest flare reduction project in the world
 Avoided 14 million tonnes of CO2 from flaring
(100% basis)
 Processing capacity 550mmscf/d associated gas
 2 billion scf/d potential
 Shell 45%, started up in 2013
 Flaring increased with production
 Flaring reduction programme under construction
 To provide power for domestic market late 2015
Basrah Gas Company Majnoon oil development
MajnoonBasrah Gas Company storage tanks

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
www.shell.com/payments
 ~$18 bln taxes & royalties paid 2014
 ~$73 bln excise tax collected in 2014
 Leadership in tax transparency

RESTRUCTURING RESOURCES PLAYS + REDUCING EXPOSURE
Capital investment
$ billion
E&A
On-stream
Gas Liquids Rich
Colombia
Argentina
Neuquen
Oman
China
Arrow CBM
Russia
Americas International
Permian
Appalachia
W. Canada LRS
W. Canada gas
Algeria
-30%
`
Germany
Tunisia
Turkey
 North America restructured in 2014
 International portfolio restructuring underway

TIGHT GAS OPERATIONS: EMISSIONS MANAGEMENT IN ACTION
 Air emissions specifically covered in onshore
operating principles
 Green completions in UA onshore operations
 Infrared cameras to identify fugitive methane
 Studies with University of Texas and EDF
 Shell conducts its operations in a manner that
protects air quality and controls fugitive
emissions as reasonably practicable

DEMAND OUTLOOK AND RESERVES
* Resources shown includes only resources in select or define phases (post feasibility study or in FEED) or are under execution or on stream.
New policies scenario
Mtoe/d
Oil Coal Gas Nuclear Hydro Bioenergy Other renewables
Mtoe/d
450 Scenario
Resources*Shell SEC
proved
reserves
Shell SEC
proved
reserves
Resources*
 Oil and gas portfolio relevant in IEA 450 scenario
 Coal demand is most impacted
Shell
 Reserves life at end 2014: ~11 years
 Further 2P +2C resources

ENVIRONMENTAL IMPACT: FUGITIVE METHANE
Study by the University of Texas at Austin in
collaboration with the Environmental Defense Fund
and 9 operators
Reason for the study:
 Wide variation in EPA national inventories
 Limited measured data
 Data better informs scientifically sound policies and
regulations
Key findings:
 Measurements from 190 onshore natural gas sites in the US
 Total emissions similar to 2011 EPA national inventory
 Well completion emissions lower than previously estimated
 Emissions from pneumatic controllers and equipment leaks
higher than EPA national emission projections
EPA production sector methane emissions
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2010 EPA (313 bcf) 2011 EPA (133 bcf) UT/EDF (119 bcf)
MethaneEmissions(Gg)
-636
225
80 34
-1000
-500
0
500
Completions
withHF
Pneumatic
Controllers
Equipment
Leaks
Chemical
Pumps
MethaneEmissions
Difference(Gg/yr)
Gg/yr

ENVIRONMENTAL IMPACT: LIFE CYCLE BENEFITS OF GAS OVER COAL
 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
Methaneleakagerates(%of
grossproduction)
Estimatevs.threshold
Critical methane leakage gas vs. coal (8%) based on a 100 year time-frame
EPA NG sector total
= 1.26%
NG Production Other NG Sector
0.79%
0.47% 0.43%
1.3%
0.69%
1.81%
1.39%
0.34%
0.87%
0.43%
0.73%
1.2%
0.9%
4.11%
3.79%
2.2%
1.4%

SOCIALLY RESPONSIBLE
INVESTORS
14 APRIL 2015

Socially responsible investors briefing in London, April 14, 2015

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Socially responsible investors briefing in London, April 14, 2015