socially responsible investors briefing in london, april 14, 2015

1 Copyright 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.

http://www.shell.com/investor

http://www.sec.gov/


ANNUAL ROUNDTABLE FOR SOCIALLY RESPONSIBLE INVESTORS

BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC


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 ROYAL DUTCH SHELL PLC


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 ZALM

PATRICIA WOERTZ

SIR 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


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 delivery Capital 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 delivery Capital 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 stream Explore 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

http://www.shell.com/ghg


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

OML 4

OML 40

OML 41 OML 38

OML 42 OML 34

OML 30 OML 26

OML 21

OML20

OML 79

OML 43

OML 27

OML 28

OML 31

OML 35

OML 46

OML 32

OML 36 OML 23 OML 11

OML 29

OML 18

OML 72

OML 24 OML 33

OML 25

OML 77 OML 74 OML 71

Forcados Yokri Integrated project OML 45

Southern Swamp Associated Gas

Gbaran Ubie Phase 2 OML 22 OML 17

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 ROYAL DUTCH SHELL PLC


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/ KWh2 GtCO2/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 Otway Cansolv

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 stream CCS

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 Operate Technology Efforts

Shell Technology Ventures

Technology demonstration/research

Future energy technologies

Used in Shell operations

Solar PV

Commercial operation*

Gas

LNG 24mtpa GTL LNG 7.4mtpa LNG 6.5mtpa

LNG 7.7mtpa

Exploration

B

C

A

* Volumes in Shell share


CLIMATE CHANGE ANGUS GILLESPIE VICE PRESIDENT CO2 ROYAL DUTCH SHELL PLC


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


Q&A

14 APRIL 2015 ROYAL DUTCH SHELL PLC


14 APRIL 2015 ROYAL DUTCH SHELL PLC

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

THRE

ATS

CO

NSEQ

UEN

CES

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 remediation Number 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

Majnoon Basrah 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)

Met

hane

Em

issi

ons

(Gg)

-636

225 80 34

-1000

-500

0

500

Com

plet

ions

with

HF

Pneu

mat

icC

ontro

llers

Equi

pmen

tLe

aks

Che

mic

alPu

mps

Met

hane

Em

issi

ons

Diff

eren

ce (G

g/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

Met

hane

leak

age

rate

s (%

of

gros

s pr

oduc

tion)

Estim

ate

vs. t

hres

hold

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%


ANNUAL ROUNDTABLE FOR SOCIALLY RESPONSIBLE INVESTORS 14 APRIL 2015 ROYAL DUTCH SHELL PLC

socially responsible investors briefing in london, april 14, 2015

Investor Relations