ExxonMobilExxonMobil

Royal Dutch ShellRoyal Dutch Shell

Aranzazu GuisuragaAranzazu GuisuragaJosé MadronaJosé Madrona

Urszula Fernández KolczakUrszula Fernández KolczakUBI, December 12th 2003

AgendaAgenda

PastPast

Historical background

Present

Companies profiles, KIT

Future

Snapshot in 10 years

Companies HistoryCompanies History

1883 selling sea shells

1892 Start exporting Oil1896 Royal Dutch Competing British

1907 Royal Dutch/Shell Group

since then in the oil

& petrochemical. business.

Source: Royal Dutch Shell & ExxonMobil corporate web sites

1882 Standard Oil Trust

Standard Oil CoNJ

Standard Oil CoNY

1911 Standard Oil TrustSpin-off

1972 Exxon Corp.1966 Mobil Oil Corp.

34 companies

1998/99 Exxon Mobil Corp.

Corporate MissionCorporate Mission

ExxonMobilExxonMobilTo provide quality petroleum and

petrochemical products and services in the most efficient and responsible manner to generate

outstanding customer and shareholder value.

We operate safely, ethically and with regard for the environment.

This is our highest priority.

Royal Royal DutchDutch ShellShell

To manufacture, supply, trade and market oil and chemical products

for the good of our customers, employees, shareholders and the

country.

We aim to be the customer’s top performer of first choice-always.

We strive for excellence in the provision of quality products and

services to our customers at competitive terms.

In the conduct of our business, we are committed to the highest

standards in safety and occupational health and to the protection of the environment.

StructureStructure

Royal DucthPetroleum Company

Shell Transport and

Trading Company

Exploration & ProductionGas & Power

Oil Productions

Chemicals

Renew. & Other

60% 40%

BU Spread worldwide

UpstreamExploration & Production

DownstreamRefining & Marketing

BU Spread worldwide

Technology

ExxonMobil

Chemicals

Senior Management ProfileSenior Management Profile

ExxonMobil

Corporate Structure

Lee R. Raymond

Chairman and CEO

(will retire shortly)

Vice Presidents:

Edward G. Galante (Exxon)

Harry J. Longwell (Exxon)

Rex W. Tillerson (Exxon)

Similarities: very high % of executives with engineering background, and with carrier path within the parent company

Differences: Shell possess high number of female top executives

(11 out of 55)

Royal Dutch Shell

Group Managing Directors

Committee of Managing Directors

Sir Philip Watts Jeroen van der Veer

Chairman of Shell TTC President of RDPC

Judy Boynton Malcolm BrindedRob Routs

Walter van de Vijver

Corporate image: Corporate image: CSR TurtleCSR Turtle and and TigerTiger

Phillip Watts: "we can't wait to answer all questions on global warming beyond reasonable doubt",… "there is compelling evidence that climate change is a threat".

14 points (out of 14) on the CCGC

Lee Raymond: "We do not now have sufficient scientific understanding of climate change to make reasonable predictions and/or justify drastic measures… Some reports in the media link climate change to extreme weather and harm to human health. Yet experts see no such pattern.“

4 points on the climate change governance checklist

June 2002: shareholders action 20.3 % vs. 8.9 % in 2001) votes for renewables

November 2002: $100 million/10 year support to Global Climate and Energy Project

it is the power behindBush‘s throne

Source: MORI research 1997

Financial resumeFinancial resume

0

5

10

15

2000 2001 2002

%of Net Income dedicated to exploration

Exxon

Shell

0

2

4

6

2000 2001 2002

% of Net Income dedicated to R&D

Exxon

Shell

0

5

10

15

20

$ Bill.

2000 2001 2002

Net Income

Exxon

Shell

Source of information: Exxon 2002 Annual Report & Shell 2002 Annual Report

Global PresenceGlobal Presence

upstream

downstream

chemicals

political reasons:Iran, Pakistan

historical reasons:Surinam

economical reasons:Cameroon, Gabon, Morocco

Source: www.exxonmobil.comShell Annual Report 2002

Branding

• Shell: unique branding• Exxon Mobil: differentiate branding

Shell 30

BP 2

Esso 3

Mobil 0

Texaco 1

Other 13

Brand Preference Analysis(1)

Source: The Shell Report 2002

First preference:Shell 10

BP 6

Esso 4

Mobil 6Texaco 6

Other 19

Second preference:

Downstream: Downstream: the Refinerthe Refiner and and the Marketerthe Marketer

Nine multinational integrated oil companies supply 40 % of the world’s oil products, but the global spread variesAbout a third of today’s demand and the fastest growing part is in countries where the majors don’t yet have a substantial presenceExxon Mobil is the largest refiner (7% of global capacity)Shell’s strategy assumes relatively low refinery coverShell is the largest marketer (9 % of sales), but with low profitability in USACurrent trend and future challenges:

Clean fuels (EU: 0-S in 2011) => capital investments, loss in productive capacityHypermarkets entering the distribution

Marketing Sales (2001) Refinery cover (2001)

PetrochemicalsPetrochemicals

Streamline and reduce (40 % diversification)

Targeted 10% growth

Growth Strategy

„ close to the refinery gate“

„cracker-end“ (monomer capacity 55% of total)

technology licensing portfolio

Technological Focus

11%12%Size as % of Group Total Net Fixed Assets

RD ShellExxon Mobil

Source: Merrill Lynch, Global Octane October 2002

Upstream: Key IssuesUpstream: Key Issues

Increasing of production costs Biggest companies tends to consolidateTendencies to M&AReplacement of findings

Deepwater & oil sands Key

OPEC quota constrainsGas growth expected to be higher than oil

EU focused on gas growthUSA focused on oil production

0

2

4

6

1998 1999 2000 2001

Price ($/BOE) TIER 1 Group

Source of information: Merrill Lynch: Global Octane 2002/23 Octubre & Wall Stree Journal Europe

DeepwaterDeepwater

Geographic Split of Deepwater Volumes, 2005

Brazil32%

GoM29%

West Africa39%

Geographic Split Deepwater Volumes, 2001

Brazil22%

GoM31%

West Africa35%

Others12%

Growth of Deepwater share in Oil Production

02468

10

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Perc

enta

ge

Deepwater Reserves Under Development

-200

20406080

0 2 4 6Angola, Nigeria, R Africa, GoM,Brazil

perc

enta

ge

Exxon

Shell

Source of information: Merrill Lynch: Global Octane 2002/23 Octubre

LNGLNGGROWTH IN NATURAL GAS DEMAND

US

Europe

Asia

Latin America

Middle EastAfrica

0

10

20

30

40

50

60

70

80

2000 2005 2010 2015 2020

" A grow ing role for natural gas", ExxonMobil Corp. 2003

Forecast LNG Demand Growth

0255075

100125150175200225

1990 1995 2000A 2005E 2010E

Source: Merril Lynch, Global Octane October 2002

mpt

a

Actual and Forecasted Prodcution in 2006

0

5

10

15

20

25

30

RDS BP TFE XOM

Source: Merril Lynch-Global Octane October 2002

million t pa

Net Planned'06

Net Existing

Russia, VenezuelaOman, Nigeria, Brunei, Malaysia, Australia, Shell

Russia, Australia Nigeria, YemenIndonesia,,Qatar, LybiaExxon

FutureActualLocations

Strengths:•Easy transportation for long distance supply.•Growth rate: 2000-2020: 6% p.a.•The largest growing hydrocarbon fuel

Historical markets: Japan(50%) and AP.Emerging markets: Europe, US, China, India.Historic Supply: AsiaNew Supplying countries: Middle East and Russia

Oil SandsOil Sands

Sources&Future:• Athabasca (80%)-Shell Canada (60% in Syncrude)•Cold Lake (12%)-100% Imperial Oil (Exxon subsidiary)•Peace River (8%)-Shell•New Players 2006: Total Fina Elf.

Remaining Ultimate Recoverable Reserves

0

50

100

150

200

250

300

350

billi

on b

arre

ls

Canada Conventional Oil Saudi Arabia Canada Oil Sands

Source: Merril Lynch, Global Octane, October 2002

Oil Sands Production as% of Total WW BOE

0%

20%

40%

60%

80%

100%

SU IMO RD/SC XOMSource: Merril Lynch, Global Octane, October 2002

Production

0

100000

200000

300000

Suncor Imperial Oil ConocoPhilips

ShellCanada

bpd

Source: Web site Canada Ministry of Energy

Renewable Energy SourcesRenewable Energy Sources

Exxon Mobilepioneer, butNOT PRESENT now20.3 % vote

Shell Solarone of the largest global solar enterprises

present in 90 countries

Shell Wind Energyportfolio of 240 MW

1990-2000 Annual Growth

2421

14

0.94 4

0.50

5

10

15

20

25

30

win

d

sola

r

biom

ass

biof

uels

geoth

erm

also

lar t

herm

aloce

an/w

ave

% p

.a.

Growth Forecast

-60

-40

-20

0

20

40

60

80

100

120

140

160

2000-20 2000-40 2000-60

Mb

/d

oe

Source: Shell Renewable Corporate Brochure

renewablesgasoilcoalnuclear

Hydrogen Economy and Fuel CellsHydrogen Economy and Fuel Cells

Investment Funds:

Ballard, BOC, BASF, Duke Energy Mitsubishi, Johnson Matthey

Joint Ventures:

Demonstration:

Fuel ProcessorsH2 storage

solutions

H2 purification technology

FCV refuelling projects

USAIceland

NLJapan

CUTE

Zero emission FCSiemens Westinghouse

Exploring large scale applications

Statkraft & Aker Kvaerner

EE--CommerceCommerce

ShellShellfounding partner of(today is the world's only e-procurement marketplace serving the oil and gas, and chemical industry)

Exxon Mobil Exxon Mobil member of(for petrochemicals, plastics and fuel additives)

GEMS software platform (to make transactions more efficient)

KIT Analysis (1)KIT Analysis (1)

Exposure to Opec - -Estimated growth in oil production + oEstimated growth in gas production o +Average finding and development cost + o/-Reserve replacement Global oils o o/-Worlwide oil equivalent reserves ++ +

LNG production + ++LNG location (demandvs. Production) + ++LNG equipment(ships) + ++Deepwater investment ++ ++Volume growth exposure to deepwater + +Operated Deepwaters fields o/+ ++% of fields in best region (WA) ++ +Oil Sands ++ +

KIT Analysis (2)KIT Analysis (2)

Downstreem:Shifting demand patterns - -Downstreem:hypermarkets entrance + 0Downstreem:cleen fuels + ++

Renowables 0 ++Hydrogen Energy and Fuel Cells + ++

M&A + -Corporate Responsability - +

FUTURE in 2014FUTURE in 2014

FUTUREFUTURE

Economy: •Increasing dependence on OPEC•Strong growth in China, A/P.•Stabilization in Russia.•Increased demand (2015: 80%)•Dual currency in oil market: euro & dollar•Arabic investments in EU companies

Politics:•EU consolidation•Political stability (Russia, Middle East, Venezuela)•Reduce influence of US in favor of the EU.

Technology:•Driving Oil sands production.•Hydrogen and fuel cells•Shift in the key driver:

•Cost reduction/efficiency.•IT: lead to seamless business operations

Environment:•Kyoto ratification•EU regulations•NGOs pressure

Exxon Mobile: Snapshot 2014Exxon Mobile: Snapshot 2014

Upstream: Diversified portfolio (OPEC):12% deepwater, 10% oil sands, 5% (M&A in Russia), 70% OPEC, 3% others.

Improved Corporate Image (due to new CEO appointment)Still lacking the renewables energy focus Fuel cells leadersConsolidated operations in ChinaLNG:

expanded on E&P in Asia-PacificCapitalization on existing sources in North AfricaAmong top five on maritime LNG transportation business.Leaders on supply for US markets.Second suppliers in EU, after TFE.

Leaders in E&P technology

Royal Dutch Shell: Snapshot 2014Royal Dutch Shell: Snapshot 2014

Upstream: Diversified portfolio (OPEC):10% deepwater, 4% oil sands, 1% (M&A in Russia), 82% OPEC, 3% others.

Presence in China. Leaders on hydrogenShell Solar and Shell Wind leaders in renewables.LNG:

Supply leaders in Asia, India and Japan. Leaders on LNG maritime transportation. Strong expansion in India.

State-of-Art technology for E&PE-commerce leader

Thank YouThank You

Questions?Questions?

Global LNG Trading 2001Global LNG Trading 2001

20.9131.809.0010.207.830.7716.547.43

Total Exports

2.603.70------Taiwan

3.045.360.800.08--6.675.30South

Korea

15.2722.748.2010.05--8.300.83Japan

----1.20---Turkey

----1.710.770.780.91Spain

----0.26---Portugal

----3.00---Italy

--------Greece

----0.50-0.15-France

----0.08---Belgium

---0.071.08-0.640.34US

Malay.Indon. BruneiAust.Nig.LibyaQatarOmanTo

Source: Cedigaz

From

Downstream: Downstream: oil demand by market phaseoil demand by market phase