2011 strategy update - march 15, 2011

1 Copyright of Royal Dutch Shell plc 15/03/2011

ROYAL DUTCH SHELL PLC

INVESTOR PRESENTATION

LONDONMARCH 15, 2011


PETER VOSERCHIEF EXECUTIVE OFFICER



DEFINITIONS AND CAUTIONARY NOTE

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves for all 2009 and 2010 data, and includes both SEC proved oil and gas reserves and SEC proven mining reserves for 2008 data. 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 or SEC proven mining 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 and SEC proven mining reserves (for 2008) excluding changes resulting from acquisitions, divestments and year-average pricing impact. To facilitate a better understanding of underlying business performance, the financial results are also presented on an estimated current cost of supplies (CCS) basis as applied for the Oil Products and Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful information concerning the effect of changes in the cost of supplies on Royal Dutch Shell‟s results of operations and is a measure to manage the performance of the Oil Products and Chemicals segments but is not a measure of financial performance under IFRS.

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, 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 presentation, 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 24% shareholding in Woodside Petroleum Ltd.) 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‟‟, „„intend‟‟, „„may‟‟, „„plan‟‟, „„objectives‟‟, „„outlook‟‟, „„probably‟‟, „„project‟‟, „„will‟‟, „„seek‟‟, „„target‟‟, „„risks‟‟, „„goals‟‟, „„should‟‟ 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 the Shell‟s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve 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 potential litigation and regulatory measures as a result of climate changes; (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 factors that may affect future results are contained in Royal Dutch Shell‟s 20-F for the year ended 31 December, 2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 15 March 2011. Neither Royal Dutch Shell 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. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as resources and oil in place, that SEC's guidelines strictly prohibit us from including in 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.

http://www.shell.com/investor

http://www.sec.gov/


ROYAL DUTCH SHELLSTRATEGY UPDATE


0

100

200

300

400

1980 1990 2000 2010 2020 2030 2050

Mln Boe/d

GLOBAL ENERGY MIX

Industry outlook

Hydrocarbons dominate outlook

Growth required in all sectors of energy mix

Energy policy + sustained investment

Shell

Crude oil & oil products

Natural gas & LNG

Biofuels, wind, carbon capture + storage

Petrochemicals

ENERGY OUTLOOK

OILGAS

COALBIOMASSWIND

SOLAR

OTHER RENEWABLES

NUCLEAR

SHELL ACTIVITIES

SHELL ESTIMATES


Injuries – TRCF per million working hours

‘GOAL ZERO’ ON SAFETY

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES

SHELL

6

Customer and partner focus

Profitability & performance

Sustainability & growth

Value added technology

0

1

2

3

4

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Focus on personal and process safety

Industry leader in Sustainable Development


STRATEGY CAPITAL INVESTMENT

STRATEGY & CAPITAL ALLOCATION

Upstream Profitable growth; price upside

>80% of total capital spending

Sustained exploration investment

Downstream Stable capital employed

Fewer refineries; upgrade chemicals assets

More concentrated marketing positions

Financial outlook Generating surplus cashflow through cycle

Investing for growth; competitive payout

Substantial cashflow growth

GROWTH INVESTMENT – THROUGH CYCLE RETURNS

0

50

100

150

2007-10 2011-14

UPSTREAM

DOWNSTREAM

$ Bln


PRIORITIESEARNINGS

CURRENT COST OF SUPPLY EARNINGS

$ Bln

UPSTREAM

DOWNSTREAM

CORPORATE

DIVESTMENTS/OTHER

FINANCIAL PERFORMANCE AND PRIORITIES

PERFORMANCE FOCUS

NEW WAVE OF PRODUCTION GROWTH

MATURING NEXT GENERATION OF PROJECT OPTIONS

-5

0

5

10

15

20

25

30

35

2006 2007 2008 2009 2010


2010 DELIVERY

CURRENT COST OF SUPPLY EARNINGS EXCLUDING IDENTIFIED ITEMS

2010 PERFORMANCE

PRIORITIES

Exploration success; 9 new discoveries; 2.3 bln boe

Business development: tight gas, coal bed methane, Iraq

Brazil retail & biofuels joint venture

6 new project start-ups; oil & gas volumes + 5%

Launched 2 new deep water projects

2010 organic reserves replacement ratio 133%

CCS earnings $18 bln (+56% 2009-10)

$2 bln underlying cost savings

$7 bln asset sales / $7 bln acquisitions

PERFORMANCE FOCUS




ROYAL DUTCH SHELLPERFORMANCE FOCUS


PEFORMANCE FOCUS COST IMPROVEMENT

$/Bbl

UPSTREAM COSTS (> $1.5 BLN 2008-10 COST SAVINGS)

100

120

140

160

180

200

15

16

17

2008 2009 2010

UNIT COST CHARTS SHOW UNDERLYING COSTS: EXCLUDES PENSIONS, FX, PROVISIONS

GROUP COSTS

15

20

2008 2009 2010

OIL PRODUCTS CHEMICALS (RHS)

DOWNSTREAM COSTS (> $2.5 BLN 2008-10 COST SAVINGS) CONTINUOUS IMPROVEMENT

$/Bbl

30

35

40

45

$ Bln

FXPENSIONSPROVISIONS

COST SAVINGS

2009 2010

Offshoring

Global contracting & procurement

Simplification & standardization

$/Mt


Operational Excellence Brand

Cost discipline

Improving manufacturing availability

Asset integrity

Concentrating the Portfolio Re-focused asset base

Maximize value in heartlands

Selective Growth Marketing + selective manufacturing

Product innovation

Brazil, Middle East and Asia Pacific

PEFORMANCE FOCUSDOWNSTREAM

GLOBAL REACH & FULL VALUE CHAINS

DOWNSTREAM CAPITAL EMPLOYED

THREE KEYS TO WINNING

-4

-2

0

2

4

6

8

-6-4-202468

03 04 05 06 07 08 09 10

CCS Earnings - $ Bln

GLOBAL INDUSTRY REFINING MARGIN (RHS)

$/Bbl

REFININGDIVESTMENT & OTHERSMARKETING & TRADING

CHEMICALS

2010

$67 Billion

DOWNSTREAM EARNINGS

CHEMICALS

MARKETING & TRADING

REFINING


0%

50%

100%

150%

2005 2010 2015 E

0

5

10

15

20

B2B unit margin Cost to Serve ($/transaction) [RHS]

PEFORMANCE FOCUS DOWNSTREAM: COST + OPERATIONAL PERFORMANCE

2009+10: > $2.5 billion underlying cost reduction

• Headcount: - 5,000

2011-12: $1 billion underlying cost reduction

• Headcount reduction

• Efficiency gains + C&P

• Business model changes

~ $15

~ $8

~$3.5

EXAMPLE: PROCESS EFFICIENCY

Business-2-Business: Unit margin & costs to serve

COST REDUCTION

DOWNSTREAM AVAILABILITY LEAN MANUFACTURING

80%

90%

100%

110%

2008 2009 2010

-11%

Refining costs index

EXCLUDES PORTFOLIO EFFECTS

90%

95%

2006 2007 2008 2009 2010

CHEMICALS

REFINING


INCREASING REFINERY SCALE

PEFORMANCE FOCUSDOWNSTREAM: REFOCUSING MANUFACTURING

* SUBJECT TO SUCCESSFUL COMPLETION OF ANNOUNCED DEALS

Kbbl/d

AVERAGE REFINERY SIZE

Refinery capacity Kbbl/d (100%)

PORTFOLIO CHANGE*

0

100

200

300

400

EXITS 2002-2011 YTD

> 700,000 bbl/d exited since end-2009

1.6 million bbl/d exited since 2002

Larger scale + increased sophistication

2009-2012 exit programme completed

On-going portfolio management

FOCUS ON LARGE INTEGRATED SITES

Shell refining capacity – Mln bbl/d

EUROPE & AFRICA ASIA PACIFICAMERICAS

-30%

100

150

200

2002 2006 2010 2012

4.7

3.3

0

1

2

3

4

5

2002 2006 2009 2011 YTD* 2012


0%

50%

100%

'09 '10 '11 YTD*

'12 '09 '10 '11 YTD*

'12 '09 '10 '11 YTD*

'12 '09 '10 '11 YTD*

'12

Aviation Fuelsmarkets

Lubricantsmarkets

Retailsites

Bulk Fuelsmarkets

DIRECT EXITSINDIRECT/PART EXIT

PEFORMANCE FOCUS DOWNSTREAM: REFOCUSING MARKETING

MARKETING REFOCUS

PORTFOLIO CHANGE SINCE END-2009*

Retail sales volume - Bln litres

120

125

130

135

2007 2008 2009 2010

RETAIL GROWTH

2009-11 DIRECT TO INDIRECT/PART EXIT

DIRECT

INDIRECT

CHANGE SINCE 2009


42 markets switched to indirect structure/part exit

Rationalization continues


0%

5%

10%

15%

20%

25%

1992 1995 1998 2001 2004 2007 2010

0

10

20

30

40$ Bln

DOWNSTREAM CASH FLOW

CCS EARNINGS EXCLUDING IDENTIFIED ITEMS

PEFORMANCE FOCUS DOWNSTREAM: CASHFLOW AND RETURNS

CASH FLOW FROM OPERATIONS EX. WORKING CAPITAL

NET CAPITAL INVESTMENT

2006-10 2010

5 year averageAnnual

0

2

4

6

82006-10

~$21 billion 2010

~$6 billion

DOWNSTREAM RETURNS

Focus on cashflow Free cashflow underpins Upstream growth + payout Business mix supports through-cycle performance Growth potential

Enhancing returns Sharp fall-off in profitability 2009-10

• Weak refining environment

Aiming for ROACE>WACC in downturns Enhancing returns through cycle

• Availability, costs, portfolio change


ROYAL DUTCH SHELLGROWTH DELIVERY


9 9 10

10 11 11

8 8 10

-5

5

15

25

35

2008 2009 2010

GROWTH DELIVERYCONVERTING RESOURCES TO PRODUCTIONBln Boe resources

Longer-term upside

GorgonNA tight gas

SakhalinBC-10

PreludePearls (CMOC)

ON-STREAM STUDYUNDER CONSTRUCTION

PreludeMalikai

AOSP debottleneckNA tight gasSchiehallion

Clair

Pearl GTLQG-4

Oman EORSchoonebeek

Others

~10 billion barrels on stream~11 billion barrels under construction

~10 billion barrels new options

Mars-BBC-10 Phase2

AOSP-Exp 1Gjoa

PerdidoGbaran UbieNA tight gas

NA tight gasAustralia

Cardamom DeepAppomattox

Vito

PRODUCTION


RESERVES REPLACEMENT 2008-10 2010

ORGANIC 3 164% 133%

REPORTED 165% 110%

BILLION BOE 2008 2009 2010

ORGANIC RESERVES ADDITIONS 1.1 3.2 1.7

PRODUCTION 1.2 1.2 1.2

NET RESERVES 11.9 14.1 14.2

GROWTH DELIVERYSEC PROVED RESERVES POSITION2008-10 RESERVES ADDITIONS

NET RESERVES 1,2

2010 RESERVES PERFORMANCE 2010 organic3 RRR 133%

Reserves life at end 2010 ~11 years

2008-10 RESERVES AVG. PERFORMANCE Organic additions ~2.0 billion boe

Production ~1.2 billion boe

Organic reserves replacement 164 %

1 Reserves attributable to Royal Dutch Shell shareholders2 Based on year end prices for 2008, and based on 12-month average price for 2009 and 2010

2008 reserves includes proven minable oil sands3 Excludes acquisitions, divestments and year-average price impact

MAJOR RESERVES ADDITIONS

Oman

Canada

Australia

Nigeria

USA

RussiaDenmark, Germany,UK

Brunei

Brazil


0

10

20

30

GROWTH DELIVERY DELIVERING ON NEW PROJECTSKEY POST-FID PROJECTS

OIL & GAS

REFINING & CHEMICALS

INTEGRATED GAS 2010-11

2014+2012-13

START-UP DATE

Gumusut-Kakap

Pluto(Woodside)

Qatargas 4

BC-10 Ph 2

Gbaran Ubie Ph 1 Qarn Alam

Pearl GtLPerdido

Gjoa

SchoonebeekAOSP-1

NA Tight gas

Port Arthur

GorgonT1-3

Amal Steam North Rankin BBonga

NW

Mars B

Iraq FCP/IPT

ONSTREAMP

P

P

P

P

P

P

P

~11 billion Boeresources

20 Upstream start-ups 2011-14 planned

Under Construction

Onstream

Study

RESOURCES

Kboe/d

2010 - Bln boe

IMPACT OF KEY START-UPS

11 billion boe resources under construction : > 800 kboe/d potential 2014

ENTITLEMENT AT $80/BBL

„12-‟13 START UPS„10-‟11 START UPS‟14 + START UPS

0

500

1000

2010 2011-2012 2013-2014 2015+

Singapore ChemicalsP


Pearl GtL plant under construction

PEARL GTL (QATAR) QATARGAS 4 (QATAR)

GROWTH DELIVERY INTEGRATED GAS

Inaugural Qatargas 4 cargo arriving at Shell Hazira Regasification Terminal

GORGON (AUSTRALIA)

Barrow Island

Part of Shell’s new integrated gas potential of ~500 kboe/d 2015

Commissioning underway; ~12 months start-up

1.6 bcf/d wet gas:

• 120 kboe/d NGL/ethane

• 140 kboe/d GTL

100% Shell in partnership with QP

7.8 mtpa LNG + 70 kboe/d condensates

First gas into plant – Jan 2011

First LNG export – Feb 2011

Shell 30%

3 LNG trains; 15 mtpa

Carbon capture & storage

Exploration upside

Shell 25%


Development concept

MARS-B (GULF OF MEXICO) BC-10 PHASE 2 (CAMPOS, BRAZIL)

GROWTH DELIVERY DEEPWATER

GUMUSUT-KAKAP (MALAYSIA)

TLP capacity ~100 kboe/d

New resources at Mars field

West Boreas + South Deimos

Water depth 950 meters

Shell 72% (operator)

Peak production ~30 kboe/d

Argonauta O-North field

Tie-back to Phase 1 FPSO

Water depth 1,600 meters


Peak production ~135 kboe/d

Semi submersible Floating Platform System

Water depth 1,200 meters


Phase 1 FPSO

Part of Shell’s new deepwater potential of ~200 kboe/d 2015

Construction yard at Johor Bahru


AOSP-1 (CANADA) SCHOONEBEEK (NETHERLANDS)

GROWTH DELIVERYHEAVY OIL & EOR

PDO (OMAN)

Qarn Alam steam development

New heavy oil potential of ~90 kboe/d 2013-14

AOSP-1 mine expansion 2010 -adds ~100 kboe/d

Upgrader expansion H1-2011

255 kboe/d capacity built in ~10 years

Next focus: optimization + debottlenecking


Started up Jan 2011

Steam injection for 20 kboe/d

~120 mln bbls potential over 25 years


Qarn Alam steam injection Harweel miscible gas flood Amal Steam Increased recovery factors:

<10% to >30% ~90 kboe/d 100% peak

production potential Shell 34%

Schoonebeek EOR developmentAOSP Jackpine mine


2011 investment: ~$3 billion; >400 wells

Deep Basin

Foothills

Groundbirch

Pinedale

Haynesville

Marcellus

Eagleford0

500

1,000

1,500

2,000

0

100

200

300

2006 2007 2008 2009 2010 2011 2012

PRODUCTION GROWTH

Growth potential: ~ 300 kboe/d 2012; >400 kboe/d potential 2015

Mmscf/dKboe/d

Haynesville JV

Pinedale

Groundbirch

Eagle Ford

Marcellus

Deep Basin

Foothills

40 Tcfe resources potentialSHELL ASSET BREAK EVEN PRICE

0

2

4

6

8

Mature plays Emerging plays Total

Expected gas price range

BREAKEVEN PRICE ENTRY COST

$/mcfe – End 2010

Canada

USA

GROWTH DELIVERYNORTH AMERICA TIGHT GAS


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2014

ENTITLEMENT AT $80/BBL; OUTLOOK ASSUMES LICENSE EXTENSIONS + 2010 ANNOUNCED ASSET DISPOSALS

GROWTH DELIVERY UPSTREAM PROFITABILITY + PRODUCTIONOIL & GAS PRODUCTION GROWTH

Continuing to high-grade portfolio through new investments + disposals

PRODUCTION SPLIT

0%

25%

50%

75%

100%

2010 2014

HEAVY OIL & EOR TIGHT GAS

INTEGRATED GAS

DEEPWATER TRADITIONAL

SOURAMERICAS

ASIA PACIFIC

EUROPE

OTHER

RegionalKboe/d

3,000

3,500

4,000

2009 2010 2011 2012 2014

OIL & GAS 2010 ASSET SALES

Thematic


ROYAL DUTCH SHELLMATURING NEXT GENERATION PROJECT OPTIONS


MATURING NEXT GENERATION OF PROJECT OPTIONSADDING NEW RESOURCESEXPLORATION & ACQUISITIONS EXPLORATION SPEND

$ Bln

2010 2011

0

1

2

3 AMERICAS

ASIA PACIFICEUROPE

OTHER

2010/11 average exploration spend

APPRAISAL

DISCOVERY

2010

NEW EXPLORATION/RESOURCES ENTRY

ARROW

ACME

BREDERODEBMS-54:GATO-DO-MATO

BC-10 MASSA

EAST RESOURCESEAGLEFORD

CARDAMOM DEEPSOUTH DEIMOS

GERONGGONG

AMAL SE

HEAVY OIL & EOR

TIGHT GAS

INTEGRATED GASDEEPWATERTRADITIONAL

APPOMATTOX


-2

0

2

4

6

8

'08 '09 '10

Bln boe resources/potential

TOTAL POTENTIAL RESOURCES MOVEMENTS 2010 EXPLORATION RESOURCES ADDITION

MATURING NEXT GENERATION OF PROJECT OPTIONS EXPLORATION & BUSINESS DEVELOPMENT

2010 exploration & deals add ~6 bln boe potential

2010 exploration + acquisition cost < $2/boe

EXPLORATION

DISPOSALS

0%

25%

50%

75%

100%

' 10

0%

20%

40%

60%

80%

100%

' 10

0%

20%

40%

60%

80%

100%

' 10

TIGHT GAS

INTEGRATED GAS

DEEPWATER

TRADITIONAL

AMERICAS

OTHER

ASIA PACIFICKEY ACQUISITON/NEGOTIATED ENTRY

OIL

GAS

2010 exploration adds ~2.3 bln boe at < $2/boe

3 year average finding cost at < $2/boe

PRODUCTION

Adding new resources at low cost – growth potential

EASTARROW

IRAQ


MATURING NEXT GENERATION OF PROJECT OPTIONS LNG OUTLOOK: AUSTRALIA IN FOCUS

~11 mtpa potential new LNG capacity in Australia

Greater Sunrise

North West Shelf

Browse

Gorgon

Prelude

Pluto (Woodside)

Arrow Energy LNG

UNDER CONSTRUCTIONPRODUCTION POTENTIAL

Prelude Floating LNG

2007 discovery

Targeting FID in 2011

• Environmental approval received

• FEED progressing

• Field Development Plan submitted

3.6 mtpa LNG, 0.4 mtpa LPG and 1.3 mtpa condensate

Shell 100%

Arrow Energy LNG Project

2010 acquisition: coal bed methane

Currently supplying >20% of Queensland‟s gas

Targeting LNG FEED 2011

• 1st phase 2 trains ~8 mtpa LNG

Shell-PetroChina 50-50%


MAJNOON (IRAQ) QATAR CHEMICALS

MATURING NEXT GENERATION OF PROJECT OPTIONS MIDDLE EAST POTENTIAL & NOC PARTNERING

KIDAN (SAUDI-ARABIA)

~38 billion boe oil in place

FCP ~2012: 175 kboe/d (Shell)

Long-term production potential 1.8 mln boe/d

Assessing full field options

• Discrete, modular steps

• First potential FID ~2013+

Multi-TCF sour gas opportunity

New seismic + wells planned

Shell - Saudi Aramco 50-50% Joint Venture

MOU signed in December 2010

Up to 1.5 mln tonnes mono-ethylene glycol plant under consideration

Could yield up to 2 mln tonnesper annum finished product


Shell – Qatar Petroleum-PetroChina

refining proposal

MATURING NEXT GENERATION OF PROJECT OPTIONS CHINA GROWTH + PARTNERSHIPS

China

SHELL CHINA

0

1

2

0

20

40

60

2003 2004 2005 2006 2007 2008 2009 2010

Oil & gasOil productsChemicals (RHS)

UPSTREAM PRODUCTION

DOWNSTREAM

UPSTREAM POTENTIAL

Changbei tight gas

Jinqiu + Fushun tight gas

Nanhai –Chemicals

Arrow CBM to LNGShell - PetroChina

Syria : Shell – CNPC JV

Qatar: block D exploration Shell-

PetroChina

Kboe/d Mtpa

International

2010 PROGRESS

Daning CBM

Jinqiu drill-pad


0

10

20

30

MATURING NEXT GENERATION OF PROJECT OPTIONS MATURING NEW PROJECTSOIL & GAS RESOURCES

2010 Resources in Bln boe

UNDER CONSTRUCTION

ON STREAM

Longer-term upside

>10 billion boe resources

> 30 new projects

> 1 mln boe/d potential 2018-20...

... and maturing further options

STUDY

Portfolio can support profitable growth to ~2020

Long-term growth and investment

Options to flex annual spending with macro

Capex and growth outcomes

Investment decisions driven by

Portfolio fit

Affordability

Profitability

TIGHT GAS – N. AMERICA PRELUDE - AUSTRALIA

ARROW - AUSTRALIA APPOMATTOX - USA


FINANCIAL FRAMEWORK UPDATE

SIMON HENRYCHIEF FINANCIAL OFFICER



CONTRACTING & PROCUREMENT DOWNSTREAM PORTFOLIO

CONTINUOUS IMPROVEMENT

OFFSHORING

# of staff in shared service centres

0

2,000

4,000

6,000

8,000

2006 2007 2008 2009 2010

Shifting support functions to low cost shared service centres

Reducing headcount in higher cost locations

# of Retail sites „000

COSTS (RHS)

DIRECT SITES INDIRECT SITES

Low cost indirect operating model

Margin retention + enhancement

• brand• customer focus• differentiated products

Procurement from emerging markets

$Mln # of Suppliers

Sourcing from China, India, Russia and Mexico

Up to 20 % savings versus market alternatives

High end specifications

0

40

80

120

160

0

1,000

2,000

3,000

2008 2009 2010

SPENDQUALIFIED

BEING QUALIFIEDSUPPLIERS

80%

100%

120%

0

10

20

30

40

2008 2009 2010


ASSET SALES + CAPITAL EFFICIENCY

0

10

20

30

06 07 08 09 10

Cumulative

~$30 BILLION DIVESTMENTS – 5 YEARS

$ Bln

DOWNSTREAM

UPSTREAM

CORPORATE

ASSET SALES PROGRESS 2010 & 2011 YTD

Upstream 85 kboe/d production

Woodside reduction, South Texas, GOM, SPDC licences, Statfjord

Downstream > 700 kbbl/d refining capacity exit announced

Marketing switch to indirect structures/part exit

Greece, New Zealand, Finland, Sweden,

Central America, Africa, others

Allocating capital to high impact growth

Exit from late-life + non-core positions


INVESTING FOR NEW GROWTH

ITALIC: PLANNED

CONVERTING INVESTMENT TO CASHFLOW: 2009-12

0

10

20

30

40

50

60

2007 2008 2009 2010 2011E 2012E

CAPITAL UNDER CONSTRUCTION

0

10

20

30

40

50

60

EXPLORATION & EVALUATION

OTHER

CANADA

QATAR

$ Bln

START-UPS

FID / DEALSPearl GtL

Qatargas 4AOSP Expansion I

Caesar Tonga

Gorgon LNG

Mars-B

BC-10 Phase 2Singapore Chemicals

Gumusut-Kakap

DuvernayPort Arthur

Sakhalin

BC-10

Perdido

AOSP mine

East Resources

Gbaran UbiePh 1

Singapore Chemicals

2011START-UPS

Nigeria T6

Afam GasUrsa Princess Waterflood

NWS T5

Ormen LangeChangbei

QatarGas 4Pearl GtL

AOSP upgrader

PreludeMalakai

NA tight gas

AOSP debottle ph-1

SchoonebeekOman EOR

Port Arthur

ClairSchiehallion

$ Bln

2010CAPITAL UNDER CONSTRUCTION

2012-13Corrib

Gumusut-Kakap

Majnoon FCP

BC-10 Ph 21.8 BAB/SASKashagan Ph 1

North Rankin 2


0

10

20

30

40

50

REBALANCING THE FINANCIAL FRAMEWORKSURPLUS CASHFLOW THROUGH THE CYCLE

2009 2010 2012E

TARGETS ASSUME IMPROVED DOWNSTREAM AND NATURAL GAS ENVIRONMENT 2009-2012

CASH FLOW FROM OPERATIONS EXCL. NET MOVEMENTS IN WORKING CAPITALASSET SALES CAPITAL INVESTMENT (2012 ON NET BASIS)

ACQUISITIONS

0

10

20

30

40

50

0

10

20

30

40

50

$ Bln$ Bln$ Bln

SOURCES USES$80/bbl

$62/bbl

$60/bbl

$/bbl BRENT FREE CASH FLOW

$80/bbl

2009-12 targets~50% @ $60 scenario>80% @ $80 scenario


2007-10 2011-14

0

10

20

30

2009 2010 2011 2012-14

Divestments up to $3 bn/year; capital efficiency

FID pace + industry costs drive capex range

Tight gas + exploration spend flexibility

EXPLORATION

2012-14 CAPITAL INVESTMENT EXCLUDES IRAQ FULL FIELD DEVELOPMENTS

CAPITAL SPENDING + OUTLOOK

UPSTREAM

% Capital investment

DOWNSTREAM

% Capital investment

REFINING

CHEMICALS

MARKETING

0%

20%

40%

60%

80%

100%

2007-10 2011-14

HEAVY OIL & EOR

TIGHT GAS

INTEGRATED GAS

DEEPWATER

TRADITIONAL

SOUR

ASIA PACIFIC

EUROPE

AMERICAS

OTHERS


$ Bln


0%

20%

40%

60%

80%

100%

2007-10 2011-14

2012-14 INVESTMENT CHOICES & FLEXIBILITY


MATURING NEW PROJECTS: 2011-12

FID TARGETFEED TARGET

Sabah Gas KBB

CMOC

2011-12 2011-12EXPLORATION

2011

Tempa Rossa

Prelude

Rabab/Harweel

Sunrise

Arrow Energy LNG

Clair Phase 2

Malikai

Appomattox

StonesVito

AOSP Debottlenecking

Cardamom Deep

Erha North Ph3

Fram

Schiehallion Redev

Bonga SW

Linnorm

Brazil

Gulf of Mexico

US Onshore

Fr Guiana Saudi ArabiaOman

Kazakhstan

Philippines

Australia

ChinaSyria

Majnoon & West Qurna FFD

Quest CCSCanada

NWS - GWF


FINANCIAL FRAMEWORK

CFFO TARGETS ASSUME IMPROVED DOWNSTREAM AND NATURAL GAS ENVIRONMENT 2009-2012

CASH PERFORMANCE

~50-80% CFFO increase 2009-12 ($60-$80 oil price scenarios)

Surplus cash flow 2012 at $60/bbl

INVESTMENT

$25-27 bln net capex /year Up to $3 bln asset sales/year

2012+ Affordability, profitability,

portfolio

PAY-OUT

Dividend linked to results Scrip dividend option ~$10 billion expected 2011

BALANCE SHEET

0 – 30% gearing through cycle Balance sheet underpins

investment Capital employed grows

steadily

Competitive returns – cash generation – growth investment


PETER VOSERCHIEF EXECUTIVE OFFICER



2011-12 OUTLOOK

PERFORMANCE FOCUS



PRIORITIES

Studying > 30 new projects; 10 FIDs planned2011-12

Upstream growth potential to ~2020

Selective Downstream growth

>20 projects under construction

+6% production 2010-12

On track for 2012 cashflow targets

$1 billion Downstream cost savings

Continuous improvement embedded in Shell

Up to $8 bln asset sales; capital efficiency

OUTLOOK

Competitive performance – Profitable growth – Sharper delivery



Q&A


APPENDIX RESERVES & PROJECTS



2008-2010 RESERVES SUMMARY

2008 2009 2010 2008-10

RRR Organic 95% 266% 133% 164%

RRR Organic incl. price effects 97% 288% 117% 167%

RRR Reported 98% 288% 110% 165%

RESERVES REPLACEMENT RATIOS

Movements 2008 2009 2010

Organic1 reserves additions 1,132 3,158 1,653

Year end price effect 19 260 -198

Production -1,189 -1,187 -1,242

Acquisition & divestment 13 2 -85

Total subsidiaries and affiliates movements 1,164 3,420 1,370

Year end positions

Total subsidiaries and affiliates reserves 11,912 14,145 14,273

Minority interests 12 13 24

Net Shell reserves2 11,900 14,132 14,249

RESERVES IN MLN BOE

1 Excludes acquisitions, divestments and year-average price impact2 Reserves attributable to Royal Dutch Shell shareholdersBased on year end prices for 2008, and based on 12-month average price for 2009 and 20102008 proved volumes include reserves from Minable Oil Sands


Start up Project Country Shell Share Peak Production LNG 100% Products Category Shell% kboe/d Capacity Operated

mtpa2010-11 AOSP EXP 1 CANADA 60 100

GBARAN UBIE PH 1 NIGERIA 30 250

GJOA NORWAY 12 105NORTH AMERICA TIGHT GAS USA/CANADA Various ~150 *

PEARL GTL QATAR 100 320 140 kbbl/d GTL

PERDIDO USA 35 100

PLUTO LNG T1 (WOODSIDE) AUSTRALIA 22 140 4.3QARN ALAM EOR OMAN 34 40QATARGAS 4 LNG QATAR 30 280 7.8SCHOONEBEEK NETHERLANDS 30 20

SHELL EASTERN PETROCHEMICALS SINGAPORE 100 800 kta ehtylene DS

2012-13 AMAL STEAM OMAN 34 20

1.8 BAB THG & HB2 UAE 9.5 80

BC-10 PH 2 BRAZIL 50 30

CORRIB IRELAND 45 55

GUMUSUT-KAKAP MALAYSIA 33 135

HARWEEL OMAN 34 40KASHAGAN PHASE 1 KAZAKHSTAN 16.8 300MAJNOON FCP/WEST QURNA IPT IRAQ 45/15 > 30 *

NORTH RANKIN 2 AUSTRALIA 21 268PORT ARTHUR REFINERY EXPANSION USA 50 325 DSSAS ABU DHABI 9.5 115

2014+ BONGA NW NIGERIA 55 45

MARS-B, W. BOREAS & S. DEIMOS USA 72 100

GORGON LNG T1-3 AUSTRALIA 25 440 15

KEY PROJECTS UNDER CONSTRUCTION

HEAVY OIL & EOR

TIGHT GAS

INTEGRATED GAS

DEEPWATER

TRADITIONAL

SOUR

MAJNOON + W. QURNA VOLUMES REFLECT FCP/IPT* SHELL SHARE

P

P

P

P

P

P

P

P


Phase Project Country Shell share Peak production100%

LNG (100%) capacity

Theme Shell operated

Kboe/d mtpaCONCEPT Appomattox USA 80 100

SELECTION Bonga North Nigeria 55 105

Bonga South West Nigeria 44 200

Bosi Field Development Nigeria 44 130Stones USA 35 45

Vito USA 48 100

AOSP Debottlenecking Ph2&3 Canada 60 50

Carmon Creek Ph1 Canada 100 40

Rabab/Harweel Oman 34 40Arrow Energy LNG Australia 50 160 ~8Browse (BCT) LNG Australia 21 310 > 10NLNG Train 7 Nigeria 26 220 8.4NWS Gas- GWF- Phase A Australia 21 110Sunrise LNG Australia 35 120 ~4Fram UK 28 35

Majnoon FFD/West Qurna FFD Iraq 45/15 >150*

Linnorm Norway 30 50

Pearls -Khazar Kazakhstan 55 50Kashagan Ph2 Kazakhstan 17 530

DESIGN Erha North Ph3 Nigeria 44 40Malikai Malaysia 35 60

Cardamom Deep USA 100 30

Sabah Gas: KBB/KME Malaysia 30 130AOSP Debottlenecking Ph1 Canada 60 35

Prelude Australia 100 110 3.6

Gbaran Ubie Ph2 Nigeria 30 200

North American tight gas USA/Canada Various >500 ** VariousClair Ph2 UK 28 105Schiehallion Redevelopment UK 36 130Tempa Rossa Italy 25 45

STUDYING STRONG PORTFOLIO OF PRE-FID OPTIONSPOTENTIAL 2014-2020 START-UPS

HEAVY OIL & EOR

TIGHT GAS

INTEGRATED GAS

DEEPWATER

TRADITIONALSOUR

* SHELL SHARE** TOTAL SHELL PORTFOLIO; SUBJECT TO INVESTMENT PACE


Start up Well name Country Shell Share Location Water depth Oil/Gas Shell% Operated

2008 Auezov-1 Kazakhstan 55 Offshore ~10m O

Deep Basin West, BCG Canada ~ 70% Onshore - G

Groundbirch Canada 100 Onshore - G

Haynesville US, Louisiana 50 Onshore - G

Libra-1 Australia 65 Offshore ~120m OG

ML-J206T1 Malaysia 35 Offshore ~65m OG

2009 Achilles-1 Australia 25 Offshore ~4535m G

Cardamon Deep US, GoM 100 Offshore ~870m OG

Concerto Australia 100 Offshore ~280m G

Gro Norway 50 Offshore ~1380m G

Kentish Knock Australia 50 Offshore ~1220m G

Satyr Australia 25 Offshore ~1100m G

Vito US, GoM 55 Offshore ~1,200m O

West Boreas US, GoM 100 Offshore ~960m O

2010 Acme-1 Australia 33 Offshore ~878m G

Amal SE Oman 33 Onshore - O

Appomattox US, GoM 80 Offshore ~2200m O

Brederode-1 Australia 50 Offshore ~1387m G

Cardamon Deep US, GoM 100 Offshore ~870m OG

Gato do Mato Brazil 80 Offshore ~2000m O

Geronggong-2 Brunei 50 Offshore ~1000m O

Massa Brazil 50 Offshore ~1600m O

South Deimos US, GoM 100 Offshore ~960m O

2008-2010 DRILLING PERFORMANCE


APPENDIX SUPPORTING SLIDES UPSTREAM



UPSTREAM STRATEGY

2010

TECHNOLOGY, INTEGRATION AND SCALE

3.3 million boe/d production (+5%)

~14 billion boe reserves

~25 countries

$25 billion cashflow

$21 billion net capital investment

Build Resource Base Global exploration

Focused acquisitions

Continued portfolio high grading

Accelerate Resources to Value Grow profitable production

Top Quartile project delivery

Operational excellence & cost leadership

Competitive Differentiation Integrated Gas leadership

Technology + partnerships


KEY ASSET OVERVIEW

UPSTREAM GLOBAL OVERVIEW

EUROPE

AMERICAS

ASIA PACIFIC

OTHERS: RUSSIA/CIS/MIDDLE EAST/AFRICA

UNDER CONSTRUCTIONKEY FIELDS/PROVINCES/LNG VENTURES

DESIGN

GroundbirchAthabasca Oil Sands

HaynesvilleAera

Gulf of Mexico

Deepwater Brazil

Nigeria Deepwater

Nigeria SPDC

Qatar

Oman

Salym

Sakhalin

Changbei

Kashagan

North Sea

Corrib

OrmenLange

Brunei, BLNGGumusut-Kakap

Gorgon

PreludeArrow Energy LNG

Tempa Rossa

REPORTING SEGMENT

NWS

Marcellus

Netherlands

UAE

Malakai / Sabah

West Shetland

Iraq

PhilippinesMLNG

Egypt

Gabon


0

5

10

2006 2007 2008 2009 2010

CFFO CAPEX

UPSTREAM REGIONAL OUTLOOK - EUROPE

KEY PROJECTS FINANCIALS

$ Bln

OIL & GAS PRODUCTION

Oil production - SchoonebeekThe Netherlands

• Schoonebeek• Corrib• Clair Phase 2• Tempa Rossa

Kboe/d

0

500

1000

2009 2010UNITED KINGDOM NORWAY DENMARKNETHERLANDS ITALY OTHER

Gjoa Platform, Norway

2011+


0

500

1000

2009 2010

USA CANADA BRAZIL ARGENTINA OTHER

0

10

20

2006 2007 2008 2009 2010

CFFO CAPEX

UPSTREAM REGIONAL OUTLOOK - AMERICAS



Tight Gas drilling Groundbirch Canada

Espirito Santo FPSO BC-10 Brazil

$ Bln

Kboe/d

• AOSP Exp 1• Perdido• Onshore gas• Mars B• BC10 Ph2

2011+


0

500

1000

2009 2010

AUSTRALIA MALAYSIA BRUNEI CHINA OTHER

0

5

10

2006 2007 2008 2009 2010

CFFO CAPEX

UPSTREAM REGIONAL OUTLOOK – ASIA PACIFIC



Changbei – Tight GasChina

$ Bln

Kboe/d

• Pluto (Woodside)• Gumusut-Kakap• Gorgon T1-3• Prelude• Arrow Energy LNG• Malakai

Prelude FLNG

2011+


0

500

1000

1500

2009 2010

NIGERIA OMAN ABU DHABI OTHER

0

10

20

2006 2007 2008 2009 2010

CFFO CAPEX

UPSTREAM REGIONAL OUTLOOK – MIDDLE EAST, RUSSIA, CIS, AFRICAKEY PROJECTS FINANCIALS


Gbaran UbieNigeria

Pearl GTLQatar

$ Bln

Kboe/d

• Qatargas 4• Pearl GtL• Oman EOR• Bonga NW• Majnoon• West Qurna 1

2011+


LEADERSHIP IN GLOBAL LNG

SHELL LNG DESTINATIONS

0

10

20

30

Shell Exxon BG BP Total Chevron

2010 2016

SHELL LNG LEADERSHIP

PROJECTS IN OPERATION OR UNDER CONSTRUCTION

Year end mtpa

Shell ventures delivered >30% of global LNG volumes produced in 2010.

18.2 mtpa on stream (end 2010) 7.6 mtpa under construction ~11 mtpa of further LNG options

EUROPE ASIA PACIFIC/MIDDLE EAST

AMERICAS

2008 2010

0

20

40QG4

GorgonPluto

(Woodside)

Others

2010 2011-16 ~2020

Prelude

ONSTREAM CONSTRUCTION DESIGN OPTIONS

MtpaArrow EnergyLNG

SHELL GLOBAL LNG CAPACITY GROWTH


2010 LNG capacity utilization

DEVELOPMENT TECHNOLOGY IN ACTION

OPERATING PERFORMANCE

PROJECT START-UP: LNG

GREENFIELD PLANTS ONLY

50%

60%

70%

80%

90%

100%

110%

Asia Pacific

Africa Europe Asia Pacific

Sakhalin Middle East

South America

COMPETITOR PROJECT (START-UP)

Sakhalin LNG: Ramped up to full capacity in 2010 Expected to produce ~5% of the world‟s LNG Delivered its 200th LNG cargo in Oct 2010

Small, complex reservoirs; near-shore Low cost solution 50% reduction in drill time 2008+ 20 kboe/d with 50 kboe/d potential

Example: “Fish hook wells”, Brunei: Seria North Flank

(2006) (2009) (2010)(2007) (2007) (2009) (2009)


0

100

200

300

2005 2010 ~2015

0

50

100

BRAZIL GROWTH POTENTIAL

OVERVIEW SHELL POSITIONS

Raizen (Cosan) JV Marketing &

Biofuels (50%)

Parque das Conchas BC-10 • Start-up phase -1 2009• Phase 2 FID 2010

2010 PROGRESS

Gato de Mato BMS-54 discovery• Drilling 2011 to assess

commerciality

Raizen (Cosan) – Sugarcane harvesting

Massa discovery –potential for

BC-10 phase 3

Santos Basin

Campos Basin

Sao Francisco exploration

Kboe/d Kbbl/dOIL & GASETHANOLOIL PRODUCTS(RHS)

UPSTREAM PRODUCTION

UPSTREAM POTENTIAL

EspiritoSanto Basin

Bijupira-Salema

SHELL BRAZIL PRODUCTION

Raizen (Cosan) JV


APPENDIX SUPPORTING SLIDES PROJECTS & TECHNOLOGY



PROJECTS & TECHNOLOGY

Sakhalin

PROJECT DELIVERY OPERATIONAL EXCELLENCE

WELL & RESERVOIR MANAGEMENT TECHNOLOGY & INNOVATION

Control & Barriers

Incident Response & Recovery

SAFE & RELIABLE OPERATIONS

SUSTAINABLE DEVELOPMENT

Refining plant maintenance

Pinedale

Pearl GTL - Qatar

Sakhalin

Subsurface imaging


SHELL SAFETY PERFORMANCE 2011 HSSE PRIORITIES AND FOCUS

SAFETY IN SHELL

Injuries – TRCF

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES

0

1

2

3

4

5

6

7

8

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Shell IOC Range

2010 performance: Recordable injury frequency down 15%

Lost time injury frequency down 25%

Fatal accident rate down 30%

Simplify & Comply One HSSE & SP Control Framework – Shell wide

Life-Saving Rules

Focus Areas Process Safety

Road Safety

Contractor HSSE Performance

Cap & contain systems: global initiatives

Sustain Strong safety culture and leadership


STANDARD ASSET INTEGRITY MANAGEMENTSAFETY CASE ‘BOW TIE’ MODEL: PREVENTION AND RECOVERY – INDUSTRY

SAFE & RELIABLE OPERATIONS

A safety case approach to risk identification and mitigation

• Shell integrated the bowtie methodology 1990s• Systematic approach to risk management• Involve contracting companies• Full alignment & clear accountabilities between

parties

Control Control & Barriers& BarriersControl Control & Barriers& Barriers IncidentIncidentIncidentIncident

Response & Response & RecoveryRecoveryResponse & Response & RecoveryRecovery

Control Control & Barriers& Barriers IncidentIncident

Response & Response & RecoveryRecovery

Minimize Likelihood

Mitigate Consequences

HA

ZARD

CO

NSE

QU

ENC

ES


STANDARD ASSET INTEGRITY MANAGEMENT INTERNATIONAL RESPONSE

BLOWOUT PREVENTION & CONTAINMENT CAPABILITY

Founding & permanent Board Member of the Marine Well Containment Company (MWCC)

MWCC will own & deploy the system in US GOM

Subsea containment equipment designed for GOM

• Interim system available Feb 2011

• Expanded system available 2012

International Association of Oil & Gas Producers (OGP)

Industry position on capping & containment for areas outside GoM

3 Key focus areas

• Well engineering and design

• Capping and containment capability

• Oil spill response


TECHNOLOGY IN ACTION

0

25

50

75

100

Jan Apr Jul Oct

Actual Plan

OPERATING PERFORMANCE

BC-10 (PARQUE DAS CONCHAS) PHASE 1

Nine wells onstream in Q1 2010 FID on second phase taken in 2010 Deepwater low API oil Shell 50%

Kboe/d (100%)

Ultra Deepwater development with advanced technology firsts applied

Project delivery as planned Production from Phase 1 exceeded Plan in 2010 Outstanding operational safety performance BC-10 Phase 2 now in progress

2010


2006 2007 2008 2009 2010

1Q

2Q

3Q

4Q

2006 2007 2008 2009 2010

1Q

2Q

3Q

4Q

2006 2007 2008 2009 2010

1Q

2Q

3Q

4Q

PROJECT MANAGEMENT + PERFORMANCEPROJECT STATUS

FID TO FIRST PRODUCTION (TIME)

Construction time elapsed %

PROJECT PERFORMANCE AGAINST INDUSTRY BENCHMARKS

DOWNSTREAMCost Effectiveness

UPSTREAMComponent Cost

WELLSComponent Cost

IPA RESULTS

0% 50% 100%

Mars BBC-10 Ph2

Gorgon T1-3Amal Steam

SASGumusut-Kakap

North Rankin 2Bonga NW

Kashagan Ph 1Corrib

Port ArthurQarn Alam Steam

HarweelPluto LNGPearl GTL

AOSP Expansion 1Qatargas 4

SchoonebeekGjoa

Gbaran Ubie Ph1Perdido

Singapore Chemicals

END 2010


Shaping the future

LNG, GTLEnhanced oil recoverySmart FieldsDeepwaterUnconventional gasDifferentiated fuels

Floating LNGCCSArctic Advanced gas separationCoal bed methane to LNGNext gen. biofuels

Futu

re

APPLYING NEW TECHNOLOGY

TECHNOLOGY DEVELOPMENT AND DEPLOYMENT SUSTAINED INNOVATION

Toda

yEm

ergi

ngNext gen. seismicMaximized recoveryEfficient & clean fuels Low Carbon Energy

SHELLINTEGRATION

PROPRIETARYTECHNOLOGY

3RD PARTYPRODUCTS

SHELLCAPABILITIES


EMERGING

WELL & RESERVOIR MANAGEMENT TECHNOLOGY

TECHNOLOGY PROGRESS

2005

4D Seismic

Smart Wells

Radar, GPSDeepwater 4D

Smart Wells Global Development

Collaborative Work Environment

TODAY

Well Manufacturing Systems

Step Change in Seismic Imaging

Advanced EOR Technologies

~200 Kboe/d of new production added from 2008-2010

http://www.google.nl/imgres?imgurl=http://esamultimedia.esa.int/images/artemisAVhires.jpg&imgrefurl=http://www.esa.int/esaKIDSnl/SEMPAMXJD1E_UsefulSpace_1.html&usg=__tlU5ByuJ0bDYMyjqBhS8ncPRCi4=&h=2067&w=2925&sz=1156&hl=en&start=141&zoom=1&itbs=1&tbnid=k0k-bDUDqoczoM:&tbnh=106&tbnw=150&prev=/images?q=satellite&start=140&hl=en&sa=N&gbv=2&ndsp=20&tbs=isch:1&ei=sAhuTYLPK8OLhQev2Mk4


5

10

15

20

Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

LEARNING CURVE ACCELERATION NA TIGHT GAS WELL AND RESERVOIR MANAGEMNT

WELLS & RESERVOIR MANAGEMENT DELIVERY

Years

0

20

40

60

80

100

120

0 1 2 3 4 5 6 7 8 9

Pinedale - 2002 Early Deep Basin - 2006

Deep Basin - 2008 Haynesville - 2008

Groundbirch - 2008

Indexed Well Delivery Time per year since first production Example: decline rate management UKCS: choke and injection optimization

World-wide focus to maximize recovery and reduce cost

>90% operated assets now assessed for intervention

WRM added ~200 kboed 2008-2010 for Shell

Kboe/d


APPENDIX SUPPORTING SLIDES DOWNSTREAM



Operational Excellence Brand

Cost discipline

Improving manufacturing availability

Asset integrity

Concentrating the Portfolio Re-focused asset base

Maximize value in heartlands

Selective Growth Marketing + selective manufacturing

Product innovation

Brazil, Middle East and Asia Pacific

DOWNSTREAM STRATEGY

GLOBAL REACH & FULL VALUE CHAINS

2010

THREE KEYS TO WINNING

3.2 mb/d refining & 6.0 mtpa chemicals capacity

~43 thousand retail sites, 79 countries

$2.4 billion asset sales

$8 billion cashflow

$2.4 billion net capital investment

$ 2 billion cost reduction 2009-10


2006 2007 2008 2009 20100

50

100

150

2007 2008 2009 2010

IMPROVING MANUFACTURING PERFORMANCE

LEAN MANUFACTURING REFINING PORTFOLIO

Chemicals

Refining

Refinery capacity Kbbl/d

IMPROVING PROCESS SAFETY UNPLANNED DOWNTIME

# API process incidents

0

100

200

300

400

DIVESTMENTS 2002-2011 YTD*

80%

90%

100%

110%

2008 2009 2010

-11%

Refining costs index

Excludes portfolio effects

Excluding operational problems Pernis/Port Arthur



0

5

10

15

20

%

LEADING BRAND & GROWTH POTENTIAL

GLOBAL BRAND PREFERENCE

Q3 2009 Q3 2010

DIFFERENTIATED FUELS

SOURCE: GLOBAL BRAND TRACKER

% of total sales in V-Power markets

MARKETING GROWTH

SOURCE: KLINE

GLOBAL LUBES MARKET LEADER

Market share %

6

8

10

12

14

2002 2003 2004 2005 2006 2007 2008 20096%

8%

10%

12%

14%

16%

2005 2006 2007 2008 2009 2010

Trading Retail

Lubricants Aviation

http://www.bp.com/home.do

http://www.bp.com/home.do


DOWNSTREAM: MARKETING & TRADING PERFORMANCE

US Brandshare %

US WHOLESALE CONVERSION INCREASES VOLUME

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010SHELL EXXONBP MOBILCHEVRON

TRADING EARNINGS

LUBES GROWTH MARKETS


MARKETING EARNINGS

0

1

2

3

4

5

2004 2005 2006 2007 2008 2009 2010

Indexed

0

100

200

300

2004 2005 2006 2007 2008 2009 2010

SOURCE: NPD

Indexed

0

100

200

300

400

500

2005 2006 2007 2008 2009 2010

Volume Margin before overheads

CCS EARNINGS EXCLUDING IDENTIFIED ITEMS CCS EARNINGS EXCLUDING IDENTIFIED ITEMS

BRAZIL, RUSSIA, INDIA, INDONESIA, CHINA


PORT ARTHUR REFINERY EXPANSION, US GULF

SELECTIVE DOWNSTREAM GROWTH

SINGAPORE CHEMICALS START-UP 2010

RAÍZEN (COSAN) BIOFUELS JV, BRAZIL

MARKETING: CHINA, BRAZIL, SE ASIA, RUSSIA


LUBES TECHNOLOGY - ENABLING OEM PARTNERSHIPS

DOWNSTREAM GROWTH: DIFFERENTIATED TECHNOLOGY

UP TO10% FUEL & CO2 REDUCTIONFUELS TECHNOLOGY - CREATING ADDITIONAL VALUE

Fuels technology is helping Shell to decommodotize fuels enabling additional margin capture

“Save up to 1 Litre per tank”“Improved performance advanced technology”

Shell concept lubricant achieves 6.5% fuel economy benefit through technical partnership with Gordon Murray Design

NEW GROWTH WITH SULPHUR TECHNOLOGY

Managing all Shell‟s sulphur as a value added commodity

Driver Behaviour

Vehicle Performance

Shell Fuel Card Data

Shell FuelSave Partner is the new fuel management solution for commercial transport fleets


INTEGRATED VALUE CHAINS – GLOBAL REACH

INTEGRATED VALUE CHAIN UPSTREAM – DOWNSTREAM: CRUDE SUPPLY

MAKE MOVE SELL

RefiningRefining

ChemicalsChemicals

Supply & DistributionSupply &

Distribution

RetailRetail

Business-to-Business

Business-to-Business

LubricantsLubricants

Chemicals Chemicals

TradingTrading

US GulfBase Oil Hub

China Base Oil Hub

HamburgBase Oil Hub

AG HubJet Fuel

PearlGTL Plant

NWEGas Oil Hub

AG HubGas Oil

3rd Party HubGTL Naphtha

GTL Jet FuelGTL Paraffin

GTL Base OilsGTL Gas Oil

GTL PRODUCT PLACEMENT MAJOR INTEGRATED SITES

Heavy oil from Brazilian offshore fields

Heavy oil from Canadian oil sands

US Gulf Coast

Moerdijk/Pernis

Nanhai, CN

Integrated chemical/refinery key siteKey chemicals site

Singapore

SADAF


-50

50

150

250

350

450

2007 2008 2009 (end) 2010Advantaged Gas EthaneLiquids USGC Ethane marginUSGC Naphtha margin

Evolution of USGC industry cash margins + feedstock slate

CHEMICALS STRATEGY

USGC BASE CHEMICALS SHIFT TO GAS FEEDS

0

100

200

300

400

500

0

1

2

2005 2006 2007 2008 2009 2010


STRATEGY

Weighted average margins $/t

CSPCL Nanhai, China

* ETHYLENE CAPACITY – 2010 CMAI

Base chemicals and derivatives portfolio (global #5 *)

Plant integration

Growth through accessing advantaged feedstock

Ethylene growth expected ahead of GDP

EARNINGS

CCS EARNINGS EXCLUDING IDENTIFIED ITEMS

Total feedslate


0

10

20

30

40

Petrobras Ultra Raízen AleSat Others

RAÍZEN (COSAN) JV: BRAZIL MARKETING AND BIOFUELSSHARE OF BRAZILIAN RETAIL FUELS DISTRIBUTION

Leading Brazil marketing player

4,470 retail sites, 53 depots

Fuel sales volume ~18 billion litres per year

Retail, commercial fuels

JV synergies + growth potential

0

20

40

60

BRAZILIAN SUGARCANE PRODUCERS

Leading Brazil ethanol player

Sugar cane capacity~60 mtpa from 23 mills

~ 2 bln litres ethanol production capacity per year, growth aspiration to more than double volumes

Top 5 global ethanol player

Shell world-wide trading synergies

%

Mln tonnes (estimate 2010/2011)

SOURCE: SINDICOM 2009 AND ANP