Shell Executive Speech Template

State of the Company Address Houston, Texas Marvin Odum Upstream Americas Director, Royal Dutch Shell plc President, Shell Oil Company October 23, 2014 Marvin Odum on the State of the Company Marvin E. Odum became Director of the Upstream Americas business in 2009. He continues as President of Shell Oil Company. Marvin earned a bachelor’s degree in mechanical engineering from The University of Texas at Austin and a master’s degree in business administration from the University of Houston. He began his Shell career as an engineer in 1982, and has since served in a number of management positions of increasing responsibility in both technical and commercial aspects of energy. Prior to his most recent appointment and in addition to his role as Shell Oil President, he was Executive Vice President for the Americas for Shell Exploration & Production. He was named Shell Oil President in 2008 and had served as Executive Vice President since 2005, with responsibility for Shell exploration and production businesses in the western hemisphere. Marvin is a member of the Council on Foreign Relations and holds positions of board leadership and participation in the Business Roundtable and the American Petroleum Institute. He is on the executive committee of the World Business Council for Sustainable Development. In addition, he is a member of the Dean’s Council of the John F. Kennedy School of Government at Harvard University and the Advisory Board of the Cockrell School of Engineering at The University of Texas at Austin. He is also involved with several charities in the Houston area. Marvin, a US citizen, was born in 1958. He is married to Mariloli, and they have three children. Marvin Odum on the State of the Company In this address, Upstream Americas Director Marvin Odum looks back on the changes made in 2014 and what they mean for the company going forward, examining Shell’s successes and growth opportunities – from deep-water proJects to Alaska. Marvin gives Shell alumni an inside look in the company’s priorities, strategy and active role in the debate around our energy future. Hello everyone. have a strong flow of new projects, many of them here in the Americas. It’s always nice to see you. This continues to be a very important region Loli and I look forward to this every year. for the Royal Dutch Shell group. About It’s such a wonderful opportunity to see the 35% of Shell’s shareholder base is right people who built our company. here in North America. Before I get into my remarks today, I want We have profitable and growing heavy oil to acknowledge the sudden passing earlier and deep-water oil and gas businesses, this month of Phil Carroll, a former Shell Oil which generate healthy returns and cash “Our dividend Company President. flows, and both of which have growth is up. So are profiles. underlying Phil passed away following a short illness. earnings. He had joined Shell in the early 60’s as an We’ve built a significant position in We’re engineer. After serving in a variety of Unconventionals, or what you’ll often hear roles, he led Shell Oil from 1993 to 1998. referred to as resources plays. And for the expecting longer term, we are developing integrated important buy Phil’s legacy continues at Shell today, gas opportunities, such as liquefied natural backs for this particularly through initiatives he gas, and keeping our options open in year and the spearheaded on improving our business Alaska. next. And we through diversity and development of future have a strong leaders. He’s remembered as a visionary So let’s start there…with Alaska. CEO who was always willing to step up flow of new and do the right thing, even when that Keeping our options open projects, many wasn’t the easiest choice. In August we submitted a revised Chukchi of them here in Sea Exploration Plan to the Bureau of the Americas.” He is survived by his wife of 55 years, Ocean and Energy Management. It’s not Charlene, and their children and a final decision to drill next summer but it grandchildren. I’m sure you will join me in does preserve the option. remembering Phil’s family in your prayers. I know they will appreciate it. We’ve taken a critical look at all of the experiences we’ve had in Alaska over the And I thank you for letting me share that last several years and this latest Exploration with you before moving into the company Plan takes those learnings into account. update. If we drill in 2015, there will be two A better, stronger year drilling rigs working simultaneously in the I’m pleased to be able to stand before you Chukchi Sea. today with our financial performance stronger than when I saw you all at this We’re taking a methodical approach to time last year. this program. We need to see progress on a number of fronts – that includes successful Our dividend is up. So are underlying resolution of the legal challenges to the earnings. We’re expecting important buy government’s studies of the potential backs for this year and the next. And we environmental impacts of the project. Marvin Odum on the State of the Company As always, it means receiving all of the Still in the Gulf, front-end engineering and necessary permits. We need the full design is moving forward with the support of the U.S. Government. Appomattox project. Stones, which will host the deepest production facility in the And, of course, we have to have total world, is under construction. confidence that we can execute a program safely. We need to be certain we can A new frontier operate in this region exceptionally well, This is a new frontier in oil and gas deep both technically and environmentally. water. More people have walked on the moon than have been at the depths we’re If we’re not convinced, we won’t do it. exploring. The Stones field is estimated to contain more than 2 billion barrels. We believe offshore Alaska is home to some of the most prolific, undeveloped And we’ve had a series of discoveries hydrocarbon basins in the world. If that since we last spoke: turns out to be true, it could mean billions in tax revenue for the US Treasury and further - Another in the Mars basin – Kaikias -- tip the energy trade balance in favor of the that’s still being appraised. US. It also means the creation of tens of - A third major discovery in the thousands of jobs – careers that would be Norphlet play called Rydberg. We’re measured in decades. completing the full evaluation of the “More well results, but expect the resource people have Talking about decades…some of you may base to be around 100 million walked on recall or may even have been involved with barrels. Rydberg is within 10 miles of the moon Shell’s first entry into the deep water. Appomattox and Vicksburg, bringing the total potential Norphlet discoveries than have Deep water to more than 700 million barrels of oil been at the Auger, our oldest tension-leg platform, equivalent. depths we’re celebrates its 20th anniversary this year. exploring.” It’s a legend, really, in the world of deep Cardamom, Mars B, Appomattox, Stones, water. Rydberg, Kaikias…All landmark moments for Shell’s deep-water activities this Production from its fields started to slow in year…All of them in the Gulf. recent years, but in 2010, its fate took a turn. Using a new breed of seismic In 2014, we also made important technology, our engineers discovered a discoveries in Malaysia, started oil whole untapped field hidden behind a vast production from a deep-water development salt deposit four miles below the sea floor. off the coast of Nigeria, and just drilled the first exploratory wells at Libra, in Brazil, one We drilled one of the world’s longest wells of the largest deep-water fields ever and in September of this year, we began discovered in the world. The recoverable production from that field, which we call resources are estimated between 8 and 12 Cardamom. It’s a fantastic example of billion barrels. using existing infrastructure to increase oil and gas production in a less capital- A long-term outlook intensive way. I don’t want to make it sound like any of this was easy. Last time I saw you, Olympus had just made its way to the Mars field – another In 2013, the world had one of its lowest legend of the deep water. We achieved years on record for proven oil discoveries. first oil at Olympus in January of this year We discovered only half as much oil as we and we expect that production to continue consumed. to at least 2050. Marvin Odum on the State of the Company And of course, I stand in front of you today growth priority for Shell, and an area with oil prices dipping into the low $80- where we have a leadership position in the range after sticking routinely in the $100+ industry. band for a couple of years now. I’ll focus on liquefied natural gas – a fast- We continue to evaluate Shell projects at a growing business. So fast, in fact, that conservative oil price and have a trading global LNG trade has outpaced the gas strategy designed to buffer us from the market as a whole. swings. It’s not an understatement to call this a The oil price situation is always complex, revolution, which started with Shell in 1964 but we continue to believe in the massive when we brought the world’s first global population growth projections that commercial LNG cargo from Algeria to the will bring 9 million people into the world UK.

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