Transcript Challenges and Opportunities in the Oil & Gas Industry

ENERGY-WATER-FOOD
STRESS NEXUS
Olivier Gantois
Société des Pétroles Shell
WARNING: UNCERTAINTIES AHEAD
This scenarios presentation contains forward-looking
targets, and successful negotiation and completion of such
statements that may affect Shell’s financial condition, results of transactions; (i) the risk of doing business in developing
operations,
countries and countries subject to international sanctions; (j)
and businesses of Royal Dutch Shell. All statements other than legislative, fiscal, and regulatory developments including
statements of historical fact are, or may be deemed to be,
regulatory measures addressingclimate change; (k) economic
forward-looking statements. Forward-looking statements are
and financial market conditions in various countries and
statements of future expectations that are based on
regions; (l) political risks, including the risks of expropriation and
management’s current expectations and assumptions and
renegotiation of the terms of contracts with governmental
involve known and unknown risks and uncertainties that could entities, delays or advancements in the approval of projects,
cause actual results, performance or events to differ materially and delays in the reimbursement for shared costs; and
from those expressed or implied in these statements.
(m) changes in trading conditions. All forward-looking
Forward-looking statements include, among other things,
statements contained in this presentation are expressly
statements concerning the potential exposure of Royal Dutch qualified in their entirety by the cautionary statements contained
Shell to market risks and statements expressing management’s or referred to in this section. Readers should not place undue
expectations, beliefs, estimates, forecasts, projections, and
reliance on forward-looking statements. Additional factors that
assumptions. These forward-looking statements are identified may affect future results are contained in Royal Dutch Shell’s
by their use of terms and phrases such as ‘‘anticipate’’,
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forward-looking statement speaks only as of the date of this
future operations of Royal Dutch Shell and could cause those scenarios presentation, November 2014. Neither Royal Dutch
results to differ materially from those expressed in the forward- Shell nor any of its subsidiaries undertake any obligation to
looking statements included in this scenarios book, including
publicly update or revise any forwardlooking statement as a
(without limitation):(a) price fluctuations in crude oil and natural result of new information, future events or other information. In
gas; (b) changes in demand for Shell’s products; (c) currency light of these risks, results could differ materially from those
fluctuations; (d) drilling and production results;(e) reserves
stated, implied or inferred from the forward-looking statements
estimates; (f) loss of market share and industry competition; (g) contained in this scenarios presentation.
environmental and physical risks; (h) risks associated with the
identification of suitable potential acquisition properties and
WE HAVE ALREADY ENTERED
AN ERA OF VOLATILITY & TRANSITIONS
Intensified
economic
cycles
Political &
social
instability
Demographi
c transitionsurbanisation
Challenged
environment
al boundaries
Building a
‘mini-lateral’
world
Emerging
resources:
Tight/shale
gas
AN ENERGY-WATER-FOOD NEXUS
THE WORLD WILL NEED BETWEEN 40% AND 50%
MORE ENERGY, WATER, AND FOOD BY 2030
Energy
Water
Food
5
EVERYTHING IS
CONNECTED
EVERYTHING
IS
MANY LINKS IN STRESS NEXUS
CONNECTED
BUT SOME FACTORS ARE MORE INFLUENTIAL
MANY LINKS IN STRESS NEXUS
BUT SOME FACTORS ARE MORE INFLUENTIAL
Emissions
Regulation &
Resource
Pricing
Smart/
Sustainable
Urban Design
HOW ARE WE RESPONDING?
Frontline
expressions
Practical
collaboration
Developing
knowledge
HOW ARE WE RESPONDING?
Frontline
expressions
Raizen
Groundbirc
h
HOW ARE WE RESPONDING?
Developing
knowledge
Water
accounting
HOW ARE WE RESPONDING?
Resilience
action
initiative
Practical
collaboration
WHAT ARE WE LEARNING?
CONCLUDING REMARKS
Essential to appreciate the interactions between
environment, markets, politics & technology
Stresses are deeply troubling, but progress is feasible…
…if political & social choices can harness technology and
markets to improve “resilience”
Requires “and/and” instead of “either/or” mindset
Energy future – Efficient and Clean and Green all
important
Tomorrow’s success depends on how well Business,
Government, & Civil Society collaborate today