OIL AND GAS COMPANY PROFILE:

ROYAL DUTCH SHELL

What the Company Does

 Operations are divided into your businesses: Upstream, Integrated Gas and New Energies,
Downstream. Our Projects & Technology organization manages the delivery of Shell’s major
projects and drives our research and innovation.
 Integrated Gas organization manages our liquefied natural gas (LNG) activities and the
production of gas-to-liquids (GTL) fuels and other products. It includes natural gas
exploration and extraction, and the operation of the upstream and midstream infrastructure
necessary to deliver gas to market. It markets and trades natural gas, LNG, crude oil,
electricity, carbon-emission rights and also markets and sells LNG as a fuel for heavy-duty
vehicles and marine vessels.
 Shell chemicals companies have a global manufacturing base, with some assets operated by
Shell chemicals companies, some by other Shell Group companies, and others by joint
ventures.
 Africa
 Americas
 Asia Pacific
 Europe
 Middle East

 The following facts show why company is more dependent on demand for crude oil as
compared to raw natural gas:

 Largest producer of oil in the Permian Basin in West Texas and southeast
New Mexico.
 Largest independent oil producer in Oman.
 Oil producer in offshore Qatar

 By market value, it is among the top 10 US-based oil and gas companies with the total size
of its operations greater as compared to other competitors like Devon Energy, Valero
Energy and Marathon Petroleum. (Source: as reported by Statista)

How the Company Has Performed

Royal Dutch Shell PLC
It is one of the oil and gas "supermajors" and the third-largest company in the world measured by
2018 revenues (and the largest based in Europe). In the 2019 Forbes Global 2000, Shell was ranked
as the ninth-largest company in the world (and the largest outside China and the United States), and
the largest energy company. Shell was first in the 2013 Fortune Global 500 list of the world's largest
companies, in that year its revenues were equivalent to 84% of the Dutch national $556 billion GDP.]
Shell is vertically integrated and is active in every area of the oil and gas industry,
including exploration and production, refining, transport, distribution and
marketing, petrochemicals, power generation and trading. It also has renewable energy activities,
including biofuels, wind, energy-kite systems, and hydrogen. Shell has operations in over 70
countries, produces around 3.7 million barrels of oil equivalent per day and has 44,000 service
stations worldwide. As of 31 December 2014, Shell had total proved reserves of 13.7 billion barrels
(2.18×109 m3) of oil equivalent. Shell Oil Company, its principal subsidiary in the United States, is
one of its largest businesses. Shell holds 50% of Roizen, a joint venture with Cosan, which is the
third-largest Brazil-based energy company by revenues and a major producer of ethanol.

What the Successes Have Been for the Company

 Shell refreshes strategy for the energy future as it builds on strong foundation
 The company is on track to deliver on its 2020 commitments; now increases organic free
cash flow outlook to around $35 billion for 2025 at $60 per barrel (real terms, 2016)
 Shell’s expected cash delivery creates the potential to distribute $125 billion or more to
shareholders (dividends and share buybacks) over the five-year period of 2021-2025

Shell highlighted its delivery on commitments since the last Management Day in 2017:

 achieved $10 billion additional cash flow from operations from new projects started up
since 2014;
 demonstrated capital discipline within committed capital range;
 delivered $30 billion of divestments from 2016-2018;
 cancelled the scrip dividend; and
 started the $25 billion share buyback programme.

Shell also plans to:

 fully sustain the Upstream business through the next decades, and grow the company’s
market-facing businesses;
 increase organic free cash flow to around $35 billion in 2025 at $60 per barrel (real terms,
2016);
 achieve a return on average capital employed of more than 12% in 2025;
 maintain gearing of 15-25% through the cycle; and
 invest, on average, $30 billion of cash capex a year over 2021-2025 (excluding major
inorganic opportunities, but including minor acquisition spend of up to $1 billion), with a
ceiling of $32 billion a year.

Strategy updates

Shell presents a refreshed strategy that reflects the next step in delivering the world class investment
case and thriving through the energy transition. Its strategic themes are re-focused into three
categories to shape the portfolio and drive capital allocation for value growth and resiliency: Core
Upstream, Leading Transition and Emerging Power.

BIBLIOGRAFY
 https://www.shell.com/business-customers/chemicals/manufacturing-locations.html

 https://www.shell.com/energy-and-innovation/the-energy-future/shell-energy-transition-
report/_jcr_content/par/toptasks.stream/1524757699226/3f2ad7f01e2181c302cdc453c5642c77a
cb48ca3/web-shell-energy-transition-report.pdf
 https://www.shell.com/media/news-and-media-releases/2019/management-day-2019-shell-
strongly-positioned-for-the-future-of-energy.html
 https://www.reuters.com/companies/RDSa