ExxonMobil Royal Dutch Shell - Rodenberg 6 Mobil 6 Other 19 Second preference: Downstream: the...
-
Upload
truongtuyen -
Category
Documents
-
view
215 -
download
1
Transcript of ExxonMobil Royal Dutch Shell - Rodenberg 6 Mobil 6 Other 19 Second preference: Downstream: the...
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