Title of each class | Name of each exchange on which registered | |
American Depositary Receipts representing Class A ordinary shares of the
issuer of an aggregate nominal value 0.07 each
|
New York Stock Exchange | |
American Depositary Receipts representing Class B ordinary shares of the
issuer of an aggregate nominal value of 0.07 each
|
New York Stock Exchange | |
5.625% Guaranteed Notes due 2011 4.95% Guaranteed Notes due 2012 5.2% Guaranteed Notes due 2017 |
New York Stock Exchange New York Stock Exchange New York Stock Exchange |
Indicate the number of outstanding shares of each of the issuers classes of capital or common
stock as of the close of the period covered by the annual report. |
||||
Outstanding as of December 31, 2007: 3,486,221,746 RDS Class A ordinary shares of the nominal value of 0.07 each. 2,724,135,015 RDS Class B ordinary shares of the nominal value of 0.07 each. |
||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of
the Securities Act.
|
þ Yes | o No | ||
If this report is an annual or transition report, indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
|
o Yes | þ No | ||
Note Checking the box above will not relieve any registrant required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those
Sections. |
||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
|
þ Yes | o No | ||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
or a non-accelerated filer. |
||||
See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange
Act. (Check one): |
||||
Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o |
||||
Indicate by check mark which basis of accounting the registrant has used to prepare the financial
statements included in this filing: |
||||
U.S. GAAP
o International Financial Reporting Standards as issued by the International Accounting Standards Board
|
þ | Other o | ||
If Other has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. |
Item 17 o | Item 18 o | ||
If this is an annual report, indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). |
o Yes | þ No |
PART I |
PAGES | |||||||
Item 1. | Identity of Directors, Senior Management and Advisers | N/A | ||||||
Item 2. | Offer Statistics and Expected Timetable | N/A | ||||||
Item 3. | Key Information | |||||||
A. | Selected financial data | 4-5, 207 | ||||||
B. | Capitalisation and indebtedness | N/A | ||||||
C. | Reasons for the offer and use of proceeds | N/A | ||||||
D. | Risk factors | 13-15 | ||||||
Item 4. | Information on the Company | |||||||
A. | History and development of the company | 4-5, 10, 17-18, 21-22, 29-33, 35-40, 42-43, 45-48, 55-57, 117, 174-175 | ||||||
B. | Business overview | 10-12, 16-61, 66-75, 163-170 | ||||||
C. | Organisational structure | 3, E2-E4 | ||||||
D. | Property, plant and equipment | 10-12, 16-58, 68-71 | ||||||
Item 4A. | Unresolved Staff Comments | N/A | ||||||
Item 5. | Operating and Financial Review and Prospects | |||||||
A. | Operating results | 4-5, 10-12, 16-61 | ||||||
B. | Liquidity and capital resources | 62-65 | ||||||
C. | Research and development, patents and licences, etc. | 22, 36, 42, 46, 55, 59, 82, 121, 126 | ||||||
D. | Trend information | 10-12, 16-21, 34-36, 41-42, 44-45, 54-55 | ||||||
E. | Off-balance sheet arrangements | 64 | ||||||
F. | Tabular disclosure of contractual obligations | 65 | ||||||
G. | Safe harbour | ii | ||||||
Item 6. | Directors, Senior Management and Employees | |||||||
A. | Directors and senior management | 80-85, 175 | ||||||
B. | Compensation | 93, 95-98 | ||||||
C. | Board practices | 82-92 | ||||||
D. | Employees | 66-67 | ||||||
E. | Share ownership | 76-77, 83 | ||||||
Item 7. | Major Shareholders and Related Party Transactions | |||||||
A. | Major shareholders | 84, 173, 179 | ||||||
B. | Related party transactions | 83,134-135, 181, 203 | ||||||
C. | Interests of experts and counsel | N/A | ||||||
Item 8. | Financial Information | |||||||
A. | Consolidated Statements and Other Financial Information | 50-52, 62, 110-161, 182-194, 195-203, 204-206 | ||||||
B. | Significant Changes | 82,161 | ||||||
Item 9. | The Offer and Listing | |||||||
A. | Offer and listing details | 173, 204 | ||||||
B. | Plan of distribution | N/A | ||||||
C. | Markets | 173, 204 | ||||||
D. | Selling shareholders | N/A | ||||||
E. | Dilution | N/A | ||||||
F. | Expenses of the issue | N/A | ||||||
Item 10. | Additional Information | |||||||
A. | Share capital | N/A | ||||||
B. | Memorandum and articles of association | 86, 106-107, 174-181 | ||||||
C. | Material contracts | 84, 103-104 | ||||||
D. | Exchange controls | 180 | ||||||
E. | Taxation | 180-181 | ||||||
F. | Dividends and paying agents | N/A | ||||||
G. | Statement by experts | N/A | ||||||
H. | Documents on display | ii | ||||||
I. | Subsidiary Information | N/A | ||||||
Item 11. | Quantitative and Qualitative Disclosures About Market Risk | 90-91, 120, 145-149, 171-172 | ||||||
Item 12. | Description of Securities Other than Equity Securities | N/A | ||||||
PART II |
PAGES | |||||||
Item 13. | Defaults, Dividend Arrearages and Delinquencies | N/A | ||||||
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds | N/A | ||||||
Item 15. | Controls and Procedures | 90-92 | ||||||
Item 16. | [Reserved] | |||||||
Item 16A. | Audit committee financial expert | 87 | ||||||
Item 16B. | Code of Ethics | 86 | ||||||
Item 16C. | Principal Accountant Fees and Services | 77, 88, 158, 203 | ||||||
Item 16D. | Exemptions from the Listing Standards for Audit Committees | 86 | ||||||
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers | 64 | ||||||
PART III |
PAGES | |||||||
Item 17. | Financial Statements | N/A | ||||||
Item 18. | Financial Statements | 111-161, 196-203 | ||||||
Item 19. | Exhibits | 208 |
UNITS OF MEASUREMENT |
||
acre |
approximately 0.4 hectares | |
bcf/d
|
billion cubic feet per day | |
boe(/d)
|
barrels of oil equivalent (per day) | |
b/d
|
barrels per day | |
Btu
|
British thermal units | |
(k)dwt
|
(thousand) deadweight tonnes | |
mtpa
|
million tonnes per annum | |
MW
|
megawatts | |
scf
|
standard cubic feet | |
PRODUCTS |
||
BTX
|
benzene, toluene, xylene | |
GTL
|
gas to liquids | |
LNG
|
liquefied natural gas | |
LPG
|
liquefied petroleum gas | |
NGL
|
natural gas liquids | |
MEG
|
mono-ethylene glycol | |
PTT
|
polytrimethylene terephthalate | |
SM/PO
|
styrene monomer/propylene oxide | |
MISCELLANEOUS |
||
ADR
|
American Depositary Receipt | |
AGM
|
Annual General Meeting | |
CO2
|
carbon dioxide | |
EPC
|
engineering, procurement and construction | |
FEED
|
front-end engineering design | |
GHG
|
greenhouse gas | |
HSE
|
health, safety and environment | |
HSSE
|
health, safety, security and environment | |
IFRIC |
International Financial Reporting Interpretations Committee | |
IFRS
|
International Financial Reporting Standards | |
NGO
|
non-governmental organisation | |
NOC
|
national oil company | |
OFR
|
Operating and Financial Review | |
OPEC
|
Organization of the Petroleum Exporting Countries | |
PSA
|
production-sharing agreement | |
PSC
|
production-sharing contract | |
R&D
|
research and development | |
REMCO
|
Remuneration Committee | |
SEC
|
United States Securities and Exchange Commission | |
TRCF
|
total recordable case frequency | |
US GAAP |
United States Generally Accepted Accounting Principles | |
USGC
|
United States Gulf Coast | |
WTI
|
West Texas Intermediate |
CONSOLIDATED STATEMENT OF INCOME DATA | $ million | |||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
Revenue |
355,782 | 318,845 | 306,731 | 266,386 | ||||||||||||
Income from continuing
operations |
31,926 | 26,311 | 26,568 | 19,491 | ||||||||||||
Income/(loss) from
discontinued operations |
| | (307 | ) | (234 | ) | ||||||||||
Income for the period |
31,926 | 26,311 | 26,261 | 19,257 | ||||||||||||
Income attributable
to minority
interest |
595 | 869 | 950 | 717 | ||||||||||||
Income attributable
to shareholders of
Royal Dutch Shell plc |
31,331 | 25,442 | 25,311 | 18,540 | ||||||||||||
CONSOLIDATED BALANCE SHEET DATA | $ million | |||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
Total assets |
269,470 | 235,276 | 219,516 | 187,446 | ||||||||||||
Share capital |
536 | 545 | 571 | 604 | ||||||||||||
Equity attributable to
shareholders
of Royal Dutch Shell plc |
123,960 | 105,726 | 90,924 | 86,070 | ||||||||||||
Minority interest |
2,008 | 9,219 | 7,000 | 5,313 | ||||||||||||
CAPITAL INVESTMENT | $ million | |||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
Capital expenditure[A]: |
||||||||||||||||
Exploration & Production |
13,723 | 15,773 | 10,584 | 8,559 | ||||||||||||
Gas & Power |
2,951 | 2,009 | 1,573 | 1,370 | ||||||||||||
Oil Sands |
1,931 | 865 | 274 | 140 | ||||||||||||
Oil Products |
3,671 | 3,363 | 2,810 | 2,761 | ||||||||||||
Chemicals |
1,415 | 821 | 387 | 529 | ||||||||||||
Corporate |
414 | 265 | 288 | 207 | ||||||||||||
Total |
24,105 | 23,096 | 15,916 | 13,566 | ||||||||||||
Exploration expenses (excluding
depreciation and release of
currency translation differences) |
1,115 | 949 | 815 | 651 | ||||||||||||
New equity in equity-accounted
investments |
1,472 | 598 | 390 | 681 | ||||||||||||
New loans to equity-accounted
investments |
380 | 253 | 315 | 377 | ||||||||||||
Total capital investment* |
27,072 | 24,896 | 17,436 | 15,275 | ||||||||||||
*comprising |
||||||||||||||||
Exploration & Production |
15,919 | 17,079 | 11,772 | 9,569 | ||||||||||||
Gas & Power |
3,532 | 2,351 | 1,656 | 1,652 | ||||||||||||
Oil Sands |
1,931 | 865 | 274 | 139 | ||||||||||||
Oil Products |
3,856 | 3,457 | 2,844 | 2,823 | ||||||||||||
Chemicals |
1,419 | 877 | 599 | 868 | ||||||||||||
Corporate |
415 | 267 | 291 | 224 | ||||||||||||
Total |
27,072 | 24,896 | 17,436 | 15,275 | ||||||||||||
[A] | The difference between capital expenditure in this table and capital expenditure in the adjacent table (other consolidated data) relates to non-cash effects from new finance leases, the acquisition of assets with non-cash consideration and the pre-funding of working capital within jointly controlled assets. |
EARNINGS PER SHARE | $ | |||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
Basic earnings per 0.07 ordinary share |
5.00 | 3.97 | 3.79 | 2.74 | ||||||||||||
from continuing operations |
5.00 | 3.97 | 3.84 | 2.77 | ||||||||||||
from discontinued operations |
| | (0.05 | ) | (0.03 | ) | ||||||||||
Diluted earnings per 0.07 ordinary share |
4.99 | 3.95 | 3.78 | 2.74 | ||||||||||||
from continuing operations |
4.99 | 3.95 | 3.83 | 2.77 | ||||||||||||
from discontinued operations |
| | (0.05 | ) | (0.03 | ) | ||||||||||
Basic weighted average number of Class A and B shares |
6,263,762,972 | 6,413,384,207 | 6,674,179,767 | 6,770,458,950 | ||||||||||||
Diluted weighted average number of Class A and B
shares |
6,283,759,171 | 6,439,977,316 | 6,694,427,705 | 6,776,396,429 | ||||||||||||
QUARTERLY INCOME DATA (unaudited) | $ million | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | 2007 Year | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | 2006 Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue |
73,480 | 84,896 | 90,703 | 106,703 | 355,782 | 75,964 | 83,127 | 84,254 | 75,500 | 318,845 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales |
60,666 | 68,715 | 76,713 | 90,603 | 296,697 | 61,922 | 67,838 | 70,383 | 62,846 | 262,989 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit |
12,814 | 16,181 | 13,990 | 16,100 | 59,085 | 14,042 | 15,289 | 13,871 | 12,654 | 55,856 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, distribution
and administrative
expenses |
3,778 | 4,120 | 3,843 | 4,880 | 16,621 | 3,413 | 4,429 | 4,126 | 4,648 | 16,616 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exploration |
272 | 450 | 608 | 382 | 1,712 | 281 | 250 | 401 | 630 | 1,562 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share of profit of
equity-accounted
investments |
1,808 | 2,138 | 1,912 | 2,376 | 8,234 | 1,823 | 1,829 | 1,358 | 1,661 | 6,671 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and other income |
1,125 | 747 | 340 | 486 | 2,698 | 441 | 228 | 346 | 413 | 1,428 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense |
224 | 270 | 302 | 312 | 1,108 | 286 | 275 | 286 | 302 | 1,149 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before taxation |
11,473 | 14,226 | 11,489 | 13,388 | 50,576 | 12,326 | 12,392 | 10,762 | 9,148 | 44,628 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxation |
4,032 | 5,415 | 4,448 | 4,755 | 18,650 | 5,310 | 4,865 | 4,507 | 3,635 | 18,317 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income for the period |
7,441 | 8,811 | 7,041 | 8,633 | 31,926 | 7,016 | 7,527 | 6,255 | 5,513 | 26,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income attributable to
minority interest |
160 | 144 | 125 | 166 | 595 | 123 | 203 | 313 | 230 | 869 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income attributable to
shareholders |
7,281 | 8,667 | 6,916 | 8,467 | 31,331 | 6,893 | 7,324 | 5,942 | 5,283 | 25,442 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CONSOLIDATED DATA | $ million | |||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
Cash flow from
operating
activities |
34,461 | 31,696 | 30,113 | 26,537 | ||||||||||||
Capital expenditure |
24,576 | 22,922 | 15,904 | 13,566 | ||||||||||||
Cash flow used in investing
activities |
14,570 | 20,861 | 8,761 | 5,964 | ||||||||||||
Dividends paid |
9,204 | 8,431 | 10,849 | 7,655 | ||||||||||||
Cash flow used in financing
activities |
19,393 | 13,741 | 18,573 | 13,592 | ||||||||||||
Increase/(decrease) in
cash and
cash equivalents |
654 | (2,728 | ) | 2,529 | 7,094 | |||||||||||
Income by segment |
||||||||||||||||
Exploration &
Production |
14,686 | 14,544 | 13,577 | 9,522 | ||||||||||||
Gas & Power |
2,781 | 2,633 | 1,378 | 1,774 | ||||||||||||
Oil Sands |
582 | 651 | 661 | 301 | ||||||||||||
Oil Products |
10,439 | 7,125 | 9,982 | 7,597 | ||||||||||||
Chemicals |
2,051 | 1,064 | 991 | 1,148 | ||||||||||||
Corporate |
1,387 | 294 | (328 | ) | (1,085 | ) | ||||||||||
Minority interest |
(595 | ) | (869 | ) | (950 | ) | (717 | ) | ||||||||
Total |
31,331 | 25,442 | 25,311 | 18,540 | ||||||||||||
Gearing ratio[A] |
16.6 | % | 14.8 | % | 13.6 | % | 17.5 | % | ||||||||
Dividends declared
$/share[B] |
1.44 | 1.27 | 1.13 | 1.07 | [C] | |||||||||||
[A] | See Note 19[D] to the Consolidated Financial Statements on page 138. | |
[B] | From 2007 onwards, dividends are declared in US dollars. 2005 and 2006 dividends were declared in euros and translated, for comparison purposes, to US dollars (based on the dollar dividend of American Depositary Receipts converted to ordinary shares in the applicable period). | |
[C] | Comprises Royal Dutch interim dividend of 0.75 made payable in September 2004 and a second interim dividend of 1.04 made payable in March 2005 as well as a Shell Transport interim dividend of 6.25 pence and a second interim dividend of 10.7 pence that are used to calculate the equivalent dividend on a Royal Dutch Shell basis. |
CAPITALISATION TABLE | $ million | |||||||
Dec 31, 2007 | Dec 31, 2006 | |||||||
Total equity |
123,960 | 105,726 | ||||||
Short-term debt |
5,736 | 6,060 | ||||||
Long-term debt[A] |
9,659 | 7,005 | ||||||
Total debt[B] |
15,395 | 13,065 | ||||||
Total capitalisation |
139,355 | 118,791 | ||||||
[A] | Long-term debt excludes $2.7 billion of certain tolling commitments (2006: $2.7 billion). | |
[B] | As of December 31, 2007, Shell had outstanding guarantees of $1.9 billion (2006: $2.8 billion), of which $0.6 billion (2006: $2.0 billion) related to project financing. |
Chairmans message
It has been another dynamic year for the energy
industry, and it will be fascinating to see how it
develops in the years to come. There has been a
step-change in the worlds energy demand, along with
rising concern for the environmental impact of fossil
fuel use. Many wonder whether energy can be
affordable, clean and secure in the coming decades.
For Shell, three hard truths will determine our
business environment. Firstly: demand growth for
energy, driven by rising population and living
standards. Savings through energy efficiency will
help, but net demand growth will be very substantial.
Secondly: access to easy oil or gas is getting more
difficult. It is either already produced or not
easily open to international oil companies. Thirdly:
the increased use of
fossil fuels, especially coal, means emissions of carbon dioxide (CO2)
will rise, making it essential to develop solutions
to tackle greenhouse gases. Energy from renewable
sources will grow, but it is typically more costly
than energy generated from fossil fuels.
In this business environment Shell has a strong
strategy based on technology, project management and
applying our experience in how to operate with
excellence in a responsible way. This enables us to
increase our focus on unconventionals, which offer
large potential resources but often in
environmentally sensitive places. We also continue
to focus on downstream refining, base chemicals,
clean coal technology and developing at least one
substantial business in renewable energy.
Shell has a clear long-term strategy, an ability to
use technology and innovation to find and produce
oil and gas sometimes in highly challenging
environments and to turn them into products that
are essential to our everyday lives. Technology and
good work practice, quite simply, are part of the
DNA of Shell people.
As Chairman of Royal Dutch Shell plc, I have visited
a number of our major projects and operations and
seen how we apply our strategy, technology and
imagination to meet the challenges I have described.
For example, our efforts to get the most from the
worlds abundant natural gas resources were clear
when I visited a North Sea gas production platform,
200 kilometres offshore Aberdeen. Onshore, I met
teams from the vast Ormen Lange gas field in Norway
and the Corrib gas field project in Ireland. I also
saw our real time operations centre at work one of
the advanced ways we keep up round-the-clock
monitoring of our global oil and gas production.
At Sakhalin, I was amazed at the complexity of the
worlds largest integrated oil and gas project in one
of the harshest environments we face. I visited the
Athabasca Oil Sands Project in Canada now part of
our downstream operations and important to our plans
to increase production from unconventional sources
and saw the mine expansion under construction. And in
Qatar, I was impressed by the scale of the Pearl GTL
construction site, which will eventually employ
40,000 workers.
On another front, the year has seen record high oil
prices and volatility. Our spending on key projects
has continued to rise. Our shareholders, of course,
want to see good returns on our major investments,
such as Pearl GTL and Sakhalin II. They expect Shell
to be a first-quartile performer in all areas. And
they want to see growth in our company, especially in
the upstream. I feel we have a capital investment
programme and the people to make good progress
towards meeting these expectations.
By continuing to follow our strategy, I believe we
can keep delivering what our shareholders want in
2007, for example, our dividend to shareholders
increased 13% on 2006. Equally importantly, we can
continue to deliver energy to help the world grow
and prosper.
Jorma Ollila
Chairman 6 Royal Dutch Shell plc
|
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Chief Executives review
Fittingly for our centenary year, Shell made important strides forward
on many fronts in 2007. Our strong focus on delivery and growth again
paid off. Our financial performance was satisfactory, with record
income of $31.9 billion and the return of $13.4 billion to
shareholders. Our reputation generally improved and I would like to
express my appreciation to all Shell staff for achieving this.
Safety, however, is the starting point for everything we do. In 2007,
we had the fewest number of recordable incidents ever. We continue to
strive for continuous improvement in this area. We suffered fewer
fatalities among employees and contractors than the year before, but
our aim is to achieve zero fatalities. Our improvements to our safety
culture during the year including two global safety days and a major
drive to further improve process safety should help us towards that
goal. But constant effort and awareness are needed too.
Our strategy of More Upstream, Profitable Downstream is on track. We
pushed ahead with major, integrated long-life projects that once in
operation will generate cash for decades to come. Of course, we take
into account sustainability, including biodiversity and respect for
local communities, when constructing and operating all our assets.
During the year we also sold assets that did not fit our strategy.
We welcomed Shell Canada fully into our family with the acquisition of
its minority shares. As easy-to-access oil gets rarer, unconventional
resources such as Canadas oil sands will become increasingly important
sources of energy. The move will help the Oil Sands business to better
integrate bitumen upgrading with our manufacturing operations across
North America.
In Nigeria, bright spots were the performance of our
offshore operations and the completion of a sixth liquefied natural gas
(LNG) train. In the Delta region onshore, however, much of our
production again remained shut in because of the security situation.
Faced with security and funding problems in our onshore joint venture
company, we may have to streamline this operation.
The Sakhalin II venture progressed well and is on course to be a
successful mega-project, as we have always believed it would be.
Our Exploration & Production earnings were slightly up on the year
before at $14.7 billion. We made 11 notable discoveries of potential
resources and secured rights to more than 43,000 square kilometres
of acreage, an area around the size of the Netherlands.
Our Gas & Power earnings were $2.8 billion, up 6% on the previous
year. Sales of LNG were up 9% at 13.18 million tonnes. In Qatar,
construction of our major integrated projects, Pearl GTL and Qatargas
4 LNG, made good progress. We are also well under way with new LNG
projects in Australia. In the USA, we decided to proceed with the 100
MW phase II expansion of the Mount Storm wind project.
Our downstream business is hugely important to us, with two out of
three Shell people working in our many refineries, chemical plants,
supply and distribution, retail operations and, of course, Oil Sands.
They performed well in 2007, with total earnings for Oil Sands, Oil
Products and Chemicals of $13.1 billion, considerably up on 2006.
Trading and Shipping continued to provide significant support to our
key businesses.
We continued to invest in major downstream projects such as the
325,000 barrels per day expansion of the Motiva Port Arthur
refinery. In China, our Nanhai petrochemical complex enjoyed a
successful first full year of operations.
Two new partnerships in next-generation biofuels added an exciting
momentum to our work in this area. One is to work on developing
super-fast enzymes that can speed up the conversion of organic non-food
material into ethanol; the other to work on developing algae as a
source of vegetable oil for transport fuel.
Operational excellence, technology and good project management remain
central to our efforts to produce more energy from conventional oil and
gas and unconventional sources such as oil sands. We must also work to
further improve energy efficiency in all our operations, upstream and
downstream. Our differentiated fuels, such as V-Power, will continue to
help us lead in the products we offer our retail customers. We aim to
develop our ability to capture and safely store carbon dioxide
underground, and we are working with governments to establish the
incentives and policies needed to make this technology viable.
Our performance in 2007 leaves us in good health and shows our ability
to deliver results to our shareholders and partners. We have recruited
many new people as an investment for our future, knowing that some of
our experienced people will be retiring in the coming years. I would
like to thank our people for their hard work and dedication. I am proud
of their contribution.
To meet the challenges we see in our business environment, I believe we
have good people and assets, a healthy financial position and a clear
strategy. Delivery is on track. My wish is that 2008 is again one of
further delivery and growth, achieved in a responsible way.
Jeroen van der Veer
Chief Executive Royal Dutch Shell plc 7
|
![]() |
REVENUE BY BUSINESS SEGMENT (including intersegment sales) | $ million | ||||||||||||
2007 | 2006 | 2005 | |||||||||||
EXPLORATION & PRODUCTION |
|||||||||||||
Third parties |
14,963 | 16,750 | 22,865 | ||||||||||
Intersegment |
38,345 | 35,796 | 20,416 | ||||||||||
53,308 | 52,546 | 43,281 | |||||||||||
GAS & POWER |
|||||||||||||
Third parties |
15,982 | 16,035 | 14,014 | ||||||||||
Intersegment |
1,056 | 1,303 | 1,858 | ||||||||||
17,038 | 17,338 | 15,872 | |||||||||||
OIL SANDS
|
|||||||||||||
Third parties |
1,069 | 1,159 | 1,105 | ||||||||||
Intersegment |
1,785 | 1,340 | 1,359 | ||||||||||
2,854 | 2,499 | 2,464 | |||||||||||
OIL PRODUCTS |
|||||||||||||
Third parties[A] |
282,665 | 248,581 | 237,210 | ||||||||||
Intersegment |
3,407 | 2,728 | 16,643 | ||||||||||
286,072 | 251,309 | 253,853 | |||||||||||
CHEMICALS |
|||||||||||||
Third parties[B] |
41,046 | 36,306 | 31,018 | ||||||||||
Intersegment |
4,865 | 4,444 | 3,978 | ||||||||||
45,911 | 40,750 | 34,996 | |||||||||||
CORPORATE |
|||||||||||||
Third parties |
57 | 14 | 519 | ||||||||||
Intersegment |
| | | ||||||||||
57 | 14 | 519 | |||||||||||
[A] | The figures in this table, which include crude oil
sales and non-fuel revenue, are different from the table shown on page 52, which excludes these sales and revenues. |
|
[B] | The figures in this table, which includes chemical
feedstock trading, are different from the table shown on page 56, which excludes chemical feedstock trading. |
REVENUE BY GEOGRAPHICAL AREA (including intersegment sales) | $ million | |||||||||||||||||||||||||
2007 | % | 2006 | % | 2005 | % | |||||||||||||||||||||
Europe |
148,465 | 41.8 | 136,307 | 42.8 | 122,684 | 40.0 | ||||||||||||||||||||
Africa, Asia, Australia/Oceania[A] |
90,141 | 25.3 | 76,898 | 24.1 | 61,388 | 20.0 | ||||||||||||||||||||
USA |
87,548 | 24.6 | 80,974 | 25.4 | 101,308 | 33.0 | ||||||||||||||||||||
Other Americas[B] |
29,628 | 8.3 | 24,666 | 7.7 | 21,351 | 7.0 | ||||||||||||||||||||
Total |
355,782 | 100.0 | 318,845 | 100.0 | 306,731 | 100.0 | ||||||||||||||||||||
[A] | Also referred to as Other Eastern Hemisphere in this Report. | |
[B] | Also referred to as Other Western Hemisphere in this Report. |
| Earnings per share increased 26%. | |
| Dividends to shareholders increased by 13% compared with 2006. | |
| Return on average capital employed of 24.4%. | |
| Cash flow from operations improved by 9% reaching $34.5 billion. | |
| Gross proceeds from divestments were $9.9 billion. | |
| Acquisition of the Shell Canada minority interest for a cash payment of $7.1 billion. | |
| Cash returned to shareholders of $13.4 billion. |
EARNINGS | $ million | ||||||||||||
2007 | 2006 | 2005 | |||||||||||
Income from continuing operations |
31,926 | 26,311 | 26,568 | ||||||||||
Income/(loss) from discontinued operations |
| | (307 | ) | |||||||||
Income for the period |
31,926 | 26,311 | 26,261 |
SEGMENT EARNINGS[A] | $ million | ||||||||||||
2007 | 2006 | 2005 | |||||||||||
Exploration & Production |
14,686 | 14,544 | 13,577 | ||||||||||
Gas & Power |
2,781 | 2,633 | 1,378 | ||||||||||
Oil Sands |
582 | 651 | 661 | ||||||||||
Oil Products |
10,439 | 7,125 | 9,982 | ||||||||||
Chemicals |
2,051 | 1,064 | 991 | ||||||||||
Corporate |
1,387 | 294 | (328 | ) | |||||||||
Total |
31,926 | 26,311 | 26,261 |
[A] | With effect from 2007, wind and solar activities, which were previously reported within Other industry segments, are reported within the Gas & Power segment and Oil Sands activities, which were previously reported within the Exploration & Production segment, are reported as a separate segment. Prior period financial statements have been reclassified accordingly. During 2007, the hydrogen and CO2 coordination activities were moved from Other industry segments to the Oil Products segment and all other activities within Other industry segments are now reported within the Corporate segment. |
[A] | ROACE is defined as income attributable to shareholders adjusted for Shells share of interest expense, after tax, as a percentage of Shells share of average capital employed for the period. Capital employed consists of total equity, current debt and non-current debt. For more information on ROACE see key performance indicators on pages 60 and 61. |
| the divestment of 27.5% of our interest in the Sakhalin II project; and | |
| our acquisition of the 22% minority interest in Shell Canada. |
| We reduced the minority interest in our proved oil and gas reserves and our proven minable oil sands reserves from 999 million boe to 17 million boe, mainly as a result of the elimination of the minority interest in Shell Canada (including net proven minable oil sands reserves, 322 million boe) and the minority interest in Sakhalin (658 million boe). The figures quoted above between parentheses are before taking account of 2007 production. | |
| While proved oil and gas reserves attributable to Royal Dutch Shell shareholders reflected the net reduction of 402 million boe of proved reserves relating to Sakhalin, this was offset by our development programme that yielded organic reserves additions of 1,315 million boe of additional proved oil and gas reserves (comprised of 228 million boe in relation to Shell subsidiaries and 1,087 million boe in relation to Shells share of equity-accounted investments) and 6 million boe of additional minable oil sands reserves. |
PROVED AND PROVEN RESERVES (At December 31) | million barrels of | ||||||||||||
oil equivalent[C] | |||||||||||||
2007 | 2006 | 2005 | |||||||||||
Total net proved oil and
gas reserves |
|||||||||||||
Shell subsidiaries |
6,686 | 8,452 | 7,761 | ||||||||||
Shell share of equity-accounted
investments |
4,140 | 3,355 | 3,705 | ||||||||||
Total net proven minable oil
sands reserves |
1,111 | 1,134 | 746 | ||||||||||
Total net minority interests share
of Shell subsidiaries[A] |
17 | 999 | 900 | ||||||||||
Total net proved oil and gas and
net proven minable oil sands
reserves attributable to Royal Dutch
Shell shareholders [B] |
11,920 | 11,942 | 11,312 | ||||||||||
[A] | Total of minority interest associated with both net proved oil and gas reserves and net proven minable oil sands reserves. | |
[B] | Total of net proved oil and gas reserves and net proven minable oil sands reserves net of minority interests. | |
[C] | For this purpose, natural gas has been converted to barrels of oil equivalent using a factor of 5,800 standard cubic feet per barrel. |
| Record segment earnings of $14.7 billion. | |
| Production of 3.2 million barrels of oil equivalent (boe) per day (excluding oil sands) despite the continuing security issues in Nigeria. | |
| Another successful year for exploration: 11 notable discoveries. | |
| Began execution of several major projects, including Gumusut-Kakap, Shells first deep-water project in Malaysia, and Qarn Alam in Oman, one of the worlds largest thermal enhanced oil recovery projects. | |
| New flagship upstream projects (Perdido in the Gulf of Mexico; BC-10 in Brazil; Qatar GTL and Qatargas 4) progressing well. | |
| Started production from a number of new fields, including Ormen Lange in Norway, Deimos in the Gulf of Mexico and Changbei in China. | |
| Stabilised future of Sakhalin II and Kashagan projects and continuity of production-sharing agreements, agreeing partial divestments to Gazprom and KazMunaiGas respectively, along with some modification of future terms. | |
| Sustained portfolio rationalisation, reaching agreement on divestments in Norway, Austria, the North Sea in the UK and the USA. |
EARNINGS[A] | $ million | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenue (including intersegment sales) |
53,308 | 52,546 | 43,281 | |||||||||
Purchases (including change in inventories) | (3,935 | ) | (2,710 | ) | (1,121 | ) | ||||||
Exploration |
(1,712 | ) | (1,562 | ) | (1,286 | ) | ||||||
Depreciation |
(9,338 | ) | (8,672 | ) | (7,973 | ) | ||||||
Operating expenses |
(11,458 | ) | (11,000 | ) | (8,631 | ) | ||||||
Share of profit of equity-accounted investments |
3,583 | 3,075 | 4,112 | |||||||||
Other income/(expense) |
(390 | ) | (316 | ) | (282 | ) | ||||||
Taxation |
(15,372 | ) | (16,817 | ) | (14,523 | ) | ||||||
Segment earnings from continuing operations |
14,686 | 14,544 | 13,577 | |||||||||
Income/(loss) from discontinued operations |
| | | |||||||||
Segment earnings |
14,686 | 14,544 | 13,577 |
[A] | As from 2007, the Oil Sands earnings are disclosed separately. Previously these were reported as part of Exploration & Production earnings. For comparison purposes, 2006 and 2005 earnings have been reclassified accordingly, resulting in a reduction of $651 million in 2006 and $661 million in 2005. |
COUNTRIES IN WHICH EXPLORATION & PRODUCTION HAS OPERATIONS | ||||||||
Europe
|
Africa | Middle East | Asia Pacific | USA | ||||
Denmark
|
Algeria | Russia, CIS[A] | Australia | |||||
Germany
|
Cameroon | Abu Dhabi | Brunei | Other | ||||
Ireland
|
Gabon | Azerbaijan | China | Western | ||||
Italy
|
Libya | Egypt | Malaysia | Hemisphere | ||||
The Netherlands
|
Nigeria | Iran | New Zealand | Argentina | ||||
Norway
|
Tunisia | Kazakhstan | Philippines | Brazil | ||||
Ukraine
|
Oman | Canada | ||||||
UK
|
Pakistan | Colombia | ||||||
Qatar | Venezuela | |||||||
Russia | ||||||||
Saudi Arabia | ||||||||
Syria |
[A] | Commonwealth of Independent States. |
| Sustaining our heartlands, i.e. our core countries that have the available infrastructure, expertise and remaining growth potential for Shell to sustain strong operational performance and support continued investment; | |
| Focusing on new oil and gas projects where technology is a differentiator; | |
| Building integrated gas opportunities; and | |
| Unlocking unconventional oil and gas resources. |
| Licences (or concessions), which entitle the holder to explore for hydrocarbons and exploit any commercial discoveries. Under a licence, the holder bears the risk of exploration, development and production activities and of financing these activities. In principle, the licence holder is entitled to the totality of production minus any royalties in kind. The state or state oil company may sometimes enter as a joint venture partner sharing the rights and obligations of the licence but usually without sharing the exploration risk. In a few cases, the state oil company or agency has an option to purchase a certain share of production. The lease agreement, typical in North America, is generally the same except for treatment of royalties paid in cash. | |
| PSCs entered into with a state or state oil company oblige the oil company, as contractor, to provide all the financing generally, and bear the risk of exploration, development and production activities in exchange for a share of the production. Usually this share consists of a fixed or variable part, which is reserved for the recovery of contractors cost (cost oil); the remainder is split with the state or state oil company on a fixed or volume/revenue-dependent basis. In some cases, the state oil company will participate in the rights and obligations of the contractor and will share in the costs of development and production. Such participation can be across the venture or on a per field basis. Additionally, as the price of oil or gas increases above certain pre-determined levels, the Shell groups entitlement share of production would normally decrease. |
PROVED DEVELOPED AND UNDEVELOPED RESERVES (At December 31) | million barrels of oil equivalent[A] | |||||||||||||||||||||||||||
2007 | 2006 | 2005 | ||||||||||||||||||||||||||
Shell subsidiaries |
6,686 | 8,452 | 7,761 | |||||||||||||||||||||||||
Shell share of equity-accounted investments |
4,140 | 3,355 | 3,705 | |||||||||||||||||||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | million barrels of oil equivalent[A] | |||||||||||||||||||||||||||
Eastern Hemisphere | Western Hemisphere | 2007 | ||||||||||||||||||||||||||
Middle East, | ||||||||||||||||||||||||||||
Europe | Africa[B] | Asia Pacific[C] | Russia, CIS[D] | USA | Other | Total | ||||||||||||||||||||||
Proved developed and undeveloped reserves |
||||||||||||||||||||||||||||
Shell subsidiaries |
||||||||||||||||||||||||||||
At January 1 |
1,565 | 1,135 | 1,102 | 3,424 | 851 | 375 | 8,452 | |||||||||||||||||||||
At December 31 |
1,460 | 841 | 1,064 | 2,176 | 801 | 344 | 6,686 | |||||||||||||||||||||
Shell share of equity-accounted investments |
||||||||||||||||||||||||||||
At January 1 |
2,064 | | 558 | 387 | 313 | 33 | 3,355 | |||||||||||||||||||||
At December 31 |
2,022 | | 542 | 1,247 | 299 | 30 | 4,140 | |||||||||||||||||||||
Proved developed reserves |
||||||||||||||||||||||||||||
Shell subsidiaries |
||||||||||||||||||||||||||||
At January 1 |
1,089 | 478 | 482 | 409 | 463 | 238 | 3,159 | |||||||||||||||||||||
At December 31 |
1,019 | 456 | 477 | 303 | 413 | 229 | 2,897 | |||||||||||||||||||||
Shell share of equity-accounted investments |
||||||||||||||||||||||||||||
At January 1 |
1,705 | | 349 | 350 | 257 | 24 | 2,685 | |||||||||||||||||||||
At December 31 |
1,653 | | 381 | 343 | 239 | 25 | 2,641 | |||||||||||||||||||||
[A] | For this purpose natural gas has been converted to barrels of oil equivalent using a factor of 5,800 standard cubic feet per barrel. | |
[B] | Excludes Egypt. | |
[C] | Excludes Sakhalin. | |
[D] | Includes Caspian region, Egypt and Sakhalin. |
CAPITAL EXPENDITURE AND EXPLORATION EXPENSE OF SHELL SUBSIDIARIES BY GEOGRAPHICAL AREA[A] | $ million | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Europe |
2,767 | 2,684 | 1,991 | |||||||||
Africa[B] |
1,895 | 1,840 | 1,937 | |||||||||
Asia Pacific[C] |
1,326 | 1,264 | 1,067 | |||||||||
Middle East, Russia, CIS[D] |
3,515 | 4,528 | 3,844 | |||||||||
USA |
3,873 | 2,306 | 1,486 | |||||||||
Other Western Hemisphere |
1,462 | 4,100 | 1,074 | |||||||||
Total |
14,838 | 16,722 | 11,399 | |||||||||
[A] | Capital expenditure is the cost of acquiring property, plant and equipment, and following the successful efforts method in accounting for exploration costs includes exploration drilling costs capitalised pending determination of commercial reserves. In the case of major capital projects, the related interest cost is included until these are placed in service. Exploration expense is the cost of geological and geophysical surveys and of other exploratory work charged to income as incurred. Exploration expense excludes depreciation and release of currency translation differences. | |
[B] | Excludes Egypt. | |
[C] | Excludes Sakhalin. | |
[D] | Includes Caspian region, Egypt and, up to April 2007, Sakhalin. |
AVERAGE PRODUCTION COSTS OF SHELL SUBSIDIARIES BY GEOGRAPHICAL AREA[A][E] | $/barrel of oil equivalent | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Europe |
9.15 | 7.56 | 6.03 | |||||||||
Africa[B] |
7.85 | 5.60 | 4.13 | |||||||||
Asia Pacific[C] |
4.31 | 3.35 | 2.94 | |||||||||
Middle East, Russia, CIS[D] |
8.79 | 7.83 | 6.21 | |||||||||
USA |
8.35 | 8.08 | 6.57 | |||||||||
Other Western Hemisphere |
14.35 | 11.03 | 8.45 | |||||||||
Total |
8.27 | 6.95 | 5.54 | |||||||||
[A] | Natural gas has been converted to crude oil equivalent using a factor of 5,800 standard cubic feet per barrel. | |
[B] | Excludes Egypt. | |
[C] | Excludes Sakhalin. | |
[D] | Includes Caspian region, Egypt and, up to April 2007, Sakhalin. | |
[E] | Production costs exclude royalty payments of $1,804 million in 2007, $1,569 million in 2006 and $1,940 million in 2005. |
CRUDE OIL AND NATURAL GAS LIQUIDS PRODUCTION[A] |
thousand barrels/day | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Europe |
||||||||||||
UK |
183 | 223 | 250 | |||||||||
Denmark |
126 | 134 | 143 | |||||||||
Norway |
69 | 85 | 107 | |||||||||
Italy |
35 | 44 | 30 | |||||||||
The Netherlands |
6 | 6 | 7 | |||||||||
Germany |
4 | 4 | 4 | |||||||||
Total Europe |
423 | 496 | 541 | |||||||||
Other Eastern Hemisphere |
||||||||||||
Africa |
||||||||||||
Nigeria |
287 | 293 | 324 | |||||||||
Gabon |
31 | 32 | 36 | |||||||||
Cameroon |
14 | 14 | 13 | |||||||||
Total Africa |
332 | 339 | 373 | |||||||||
Asia Pacific |
||||||||||||
Brunei |
92 | 104 | 95 | |||||||||
Australia |
58 | 57 | 53 | |||||||||
Malaysia |
42 | 42 | 41 | |||||||||
China |
17 | 20 | 20 | |||||||||
New Zealand |
13 | 14 | 15 | |||||||||
Others |
5 | 5 | 4 | |||||||||
Total Asia Pacific |
227 | 242 | 228 | |||||||||
Middle East, Russia, CIS |
||||||||||||
Oman |
191 | 202 | 214 | |||||||||
Abu Dhabi |
146 | 147 | 134 | |||||||||
Russia |
51 | 52 | 35 | |||||||||
Syria |
24 | 30 | 36 | |||||||||
Egypt |
10 | 11 | 14 | |||||||||
Others |
11 | 13 | 10 | |||||||||
Total Middle East, Russia, CIS |
433 | 455 | 443 | |||||||||
Total Other Eastern Hemisphere |
992 | 1,036 | 1,044 | |||||||||
USA |
324 | 322 | 333 | |||||||||
Other Western Hemisphere |
||||||||||||
Canada |
47 | 38 | 39 | |||||||||
Venezuela |
9 | 31 | 14 | |||||||||
Brazil |
22 | 25 | 26 | |||||||||
Others |
1 | [B] | 1 | |||||||||
Total Other Western Hemisphere |
79 | 94 | 80 | |||||||||
Grand total |
1,818 | 1,948 | 1,998 | |||||||||
million tonnes a year | ||||||||||||
Metric equivalent |
91 | 97 | 100 | |||||||||
[A] | Of Shell subsidiaries, plus share of equity-accounted investments, and including natural gas liquids (share of equity-accounted investments is assumed to be equivalent to Shell interest). Oil sands and royalty purchases are excluded. In those countries where PSCs operate, the figures shown represent the entitlements of the subsidiaries concerned under those contracts. | |
[B] | Fewer than 1,000 barrels per day. |
NATURAL GAS PRODUCTION AVAILABLE FOR SALE[A] | million standard cubic feet/day | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Europe |
||||||||||||
The Netherlands |
1,518 | 1,525 | 1,562 | |||||||||
UK |
663 | 775 | 925 | |||||||||
Germany |
390 | 421 | 428 | |||||||||
Denmark |
369 | 416 | 410 | |||||||||
Norway |
357 | 325 | 298 | |||||||||
Others |
53 | 61 | 36 | |||||||||
Total Europe |
3,350 | 3,523 | 3,659 | |||||||||
Other Eastern Hemisphere |
||||||||||||
Africa |
||||||||||||
Nigeria |
584 | 455 | 377 | |||||||||
Total Africa |
584 | 455 | 377 | |||||||||
Asia Pacific |
||||||||||||
Malaysia |
865 | 956 | 858 | |||||||||
Brunei |
553 | 574 | 544 | |||||||||
Australia |
542 | 529 | 525 | |||||||||
New Zealand |
230 | 241 | 234 | |||||||||
China |
106 | 36 | | |||||||||
Others |
109 | 85 | 89 | |||||||||
Total Asia Pacific |
2,405 | 2,421 | 2,250 | |||||||||
Middle East, Russia, CIS |
||||||||||||
Egypt |
167 | 201 | 238 | |||||||||
Pakistan |
76 | 79 | 75 | |||||||||
Syria |
7 | 11 | 15 | |||||||||
Total Middle East, Russia, CIS |
250 | 291 | 328 | |||||||||
Total Other Eastern Hemisphere |
3,239 | 3,167 | 2,955 | |||||||||
USA |
1,130 | 1,163 | 1,150 | |||||||||
Other Western Hemisphere |
||||||||||||
Canada |
402 | 425 | 413 | |||||||||
Others |
93 | 90 | 86 | |||||||||
Total Other Western Hemisphere |
495 | 515 | 499 | |||||||||
Grand total |
8,214 | 8,368 | 8,263 | |||||||||
[A] | By country of origin from gas produced by Shell subsidiaries and equity-accounted investments (Shell share). In those countries where PSCs operate, the figures shown represent the entitlements of the subsidiaries concerned under those contracts. |
LOCATION OF ACTIVITIES[A][B] (At December 31, 2007) | ||||||||||||
Development and/ | ||||||||||||
Location | Exploration | or production | Shell Operator[C] | |||||||||
Europe |
||||||||||||
Denmark |
■ | ■ | ||||||||||
Germany |
■ | ■ | ||||||||||
Ireland |
■ | ■ | ■ | |||||||||
Italy |
■ | ■ | ||||||||||
The Netherlands |
■ | ■ | ■ | |||||||||
Norway |
■ | ■ | ■ | |||||||||
UK |
■ | ■ | ■ | |||||||||
Ukraine |
■ | |||||||||||
Africa |
||||||||||||
Algeria |
■ | ■ | ||||||||||
Cameroon |
■ | ■ | ■ | |||||||||
Gabon |
■ | ■ | ■ | |||||||||
Libya |
■ | ■ | ||||||||||
Nigeria |
■ | ■ | ■ | |||||||||
Tunisia |
■ | ■ | ||||||||||
Asia Pacific |
||||||||||||
Australia |
■ | ■ | ■ | |||||||||
Brunei |
■ | ■ | ■ | |||||||||
China |
■ | ■ | ■ | |||||||||
Malaysia |
■ | ■ | ■ | |||||||||
New Zealand |
■ | ■ | ■ | |||||||||
Philippines |
■ | ■ | ■ | |||||||||
Middle East,
Russia, CIS |
||||||||||||
Abu Dhabi |
■ | ■ | ||||||||||
Azerbaijan |
■ | |||||||||||
Egypt |
■ | ■ | ■ | |||||||||
Iran |
■ | |||||||||||
Kazakhstan |
■ | ■ | ||||||||||
Oman |
■ | ■ | ||||||||||
Pakistan |
■ | ■ | ■ | |||||||||
Qatar |
■ | ■ | ||||||||||
Russia |
■ | ■ | ||||||||||
Saudi Arabia |
■ | |||||||||||
Syria |
■ | ■ | ■ | |||||||||
USA |
||||||||||||
USA |
■ | ■ | ■ | |||||||||
Other Western
Hemisphere |
||||||||||||
Argentina |
■ | ■ | ||||||||||
Brazil |
■ | ■ | ■ | |||||||||
Canada |
■ | ■ | ■ | |||||||||
Colombia |
■ | |||||||||||
Venezuela |
■ | |||||||||||
[A] | Including equity-accounted investments. | |
[B] | Where an equity-accounted investment has properties outside its base country, those properties are not shown in this table. | |
[C] | In several countries where Shell Operator is indicated, Shell is the operator of some but not all exploration and/or production ventures. |
OIL AND GAS ACREAGE[A][B][C] (At December 31) | thousand acres | |||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||||||||
Developed | Undeveloped | Developed | Undeveloped | Developed | Undeveloped | |||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||
Europe |
10,253 | 2,894 | 10,384 | 3,007 | 9,850 | 3,225 | 12,860 | 4,025 | 9,852 | 3,110 | 14,507 | 4,415 | ||||||||||||||||||||||||||||||||||||
Africa[D] |
7,160 | 2,317 | 26,910 | 18,407 | 7,159 | 2,318 | 24,396 | 15,351 | 7,175 | 2,382 | 27,206 | 14,806 | ||||||||||||||||||||||||||||||||||||
Asia Pacific[E] |
7,578 | 3,265 | 96,078 | 27,556 | 7,228 | 3,277 | 125,421 | 34,290 | 7,292 | 3,313 | 123,829 | 34,455 | ||||||||||||||||||||||||||||||||||||
Middle East, Russia, CIS[F] |
27,520 | 9,614 | 74,666 | 31,176 | 32,238 | 10,284 | 66,579 | 30,321 | 32,125 | 10,302 | 66,839 | 30,467 | ||||||||||||||||||||||||||||||||||||
USA |
1,067 | 620 | 4,825 | 3,542 | 1,234 | 665 | 3,962 | 3,280 | 1,250 | 563 | 4,359 | 3,069 | ||||||||||||||||||||||||||||||||||||
Other Western Hemisphere |
917 | 598 | 31,795 | 21,077 | 945 | 569 | 30,413 | 20,328 | 872 | 551 | 30,097 | 20,314 | ||||||||||||||||||||||||||||||||||||
Total |
54,495 | 19,308 | 244,658 | 104,765 | 58,654 | 20,338 | 263,631 | 107,595 | 58,566 | 20,221 | 266,837 | 107,526 | ||||||||||||||||||||||||||||||||||||
NUMBER OF PRODUCTIVE WELLS[A][B] (At December 31) | ||||||||||||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||||||||
Oil | Gas | Oil | Gas | Oil | Gas | |||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||
Europe |
1,638 | 427 | 1,334 | 452 | 1,647 | 475 | 1,487 | 461 | 1,762 | 491 | 1,355 | 448 | ||||||||||||||||||||||||||||||||||||
Africa[D] |
1,006 | 356 | 35 | 11 | 945 | 333 | 40 | 13 | 1,234 | 413 | 36 | 12 | ||||||||||||||||||||||||||||||||||||
Asia Pacific[E] |
1,096 | 517 | 286 | 117 | 1,095 | 520 | 259 | 109 | 1,076 | 480 | 264 | 100 | ||||||||||||||||||||||||||||||||||||
Middle East, Russia, CIS[F] |
4,609 | 1,414 | 44 | 38 | 4,333 | 1,364 | 50 | 44 | 4,128 | 1,279 | 45 | 40 | ||||||||||||||||||||||||||||||||||||
USA |
15,493 | 7,825 | 1,040 | 765 | 15,977 | 8,077 | 1,069 | 830 | 16,159 | 8,270 | 873 | 636 | ||||||||||||||||||||||||||||||||||||
Other Western Hemisphere |
427 | 332 | 351 | 268 | 355 | 264 | 326 | 250 | 122 | 117 | 303 | 284 | ||||||||||||||||||||||||||||||||||||
Total |
24,269 | 10,871 | 3,090 | 1,651 | 24,352 | 11,033 | 3,231 | 1,707 | 24,481 | 11,050 | 2,876 | 1,520 | ||||||||||||||||||||||||||||||||||||
NUMBER OF NET PRODUCTIVE WELLS AND DRY HOLES DRILLED[A][B] (At December 31) | ||||||||||||||||||||||||
2007 | 2006 | 2005 | ||||||||||||||||||||||
Productive | Dry | Productive | Dry | Productive | Dry | |||||||||||||||||||
Exploratory |
||||||||||||||||||||||||
Europe |
10 | 1 | 7 | 7 | 5 | 3 | ||||||||||||||||||
Africa[D] |
3 | 1 | 7 | 1 | 9 | 1 | ||||||||||||||||||
Asia Pacific[E] |
5 | 11 | 8 | 4 | 6 | 3 | ||||||||||||||||||
Middle East, Russia, CIS[F] |
47 | 9 | 18 | 7 | 5 | 3 | ||||||||||||||||||
USA |
23 | 3 | 30 | 3 | 9 | 3 | ||||||||||||||||||
Other Western Hemisphere[G] |
48 | 11 | 22 | 3 | 3 | 4 | ||||||||||||||||||
Total |
136 | 36 | 92 | 25 | 37 | 17 | ||||||||||||||||||
Development |
||||||||||||||||||||||||
Europe |
18 | 1 | 32 | 1 | 25 | | ||||||||||||||||||
Africa[D] |
19 | | 15 | | 13 | | ||||||||||||||||||
Asia Pacific[E] |
32 | 1 | 27 | | 20 | 1 | ||||||||||||||||||
Middle East, Russia, CIS[F] |
159 | 1 | 155 | 2 | 173 | 4 | ||||||||||||||||||
USA |
475 | 2 | 478 | | 446 | | ||||||||||||||||||
Other Western Hemisphere[G] |
44 | | 76 | 2 | 26 | | ||||||||||||||||||
Total |
747 | 5 | 783 | 5 | 703 | 5 | ||||||||||||||||||
[A] | Including equity-accounted investments. | |
[B] | The term gross relates to the total activity in which Shell subsidiaries and equity-accounted investments have an interest, and the term net relates to the sum of the fractional interests owned by Shell subsidiaries plus the Shell share of equity-accounted investments fractional interest. | |
[C] | One thousand acres equals approximately four square kilometres. | |
[D] | Excludes Egypt. | |
[E] | Excludes Sakhalin. | |
[F] | Includes Caspian region, Egypt and Sakhalin. | |
[G] | A revision has been made to 2006 data to correctly reflect the effect of the BlackRock acquisition in Canada. |
| Segment earnings up 6%. | |
| Liquefied natural gas (LNG) sales volume up 9%. | |
| Record LNG volumes, high plant reliability and strong pricing delivered robust LNG operational earnings. | |
| Nigeria LNG Train 6 declared ready for start up in December 2007. | |
| Five LNG trains under construction at year end in ventures located in Russia, Qatar and Australia. | |
| Progress on development of major new LNG projects such as Gorgon in Australia. | |
| Divestment of the remaining common units in Enterprise Products Partners LP in the USA. |
EARNINGS[A] | $ million | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenue (including intersegment sales) |
17,038 | 17,338 | 15,872 | |||||||||
Purchases (including change in inventories) |
(12,870 | ) | (12,778 | ) | (13,114 | ) | ||||||
Depreciation |
(315 | ) | (284 | ) | (372 | ) | ||||||
Operating expenses |
(3,466 | ) | (3,083 | ) | (2,251 | ) | ||||||
Share of profit of equity-accounted investments |
1,852 | 1,509 | 1,007 | |||||||||
Other income/(expense) |
739 | 230 | 221 | |||||||||
Taxation |
(197 | ) | (299 | ) | 15 | |||||||
Segment earnings from continuing operations |
2,781 | 2,633 | 1,378 | |||||||||
Income/(loss) from discontinued operations |
| | | |||||||||
Segment earnings |
2,781 | 2,633 | 1,378 |
[A] | As from 2007, the Gas & Power earnings include earnings generated by the wind and solar businesses, which were previously reported as part of Other industry segments. For comparison purposes, the 2006 and 2005 earnings have been reclassified accordingly, resulting in a reduction of $17 million in 2006 and $195 million in 2005. |
COUNTRIES IN WHICH GAS & POWER HAS OPERATIONS | ||||||||
Europe
|
Africa | Middle East, | Asia Pacific | USA | ||||
Denmark
|
Ghana | Russia, CIS[A] | Australia | |||||
Germany
|
Libya | Egypt | Brunei | Canada | ||||
Greece
|
Nigeria | Iran | China | |||||
Hungary
|
Oman | India | Other Western | |||||
Italy
|
Qatar | Japan | Hemisphere | |||||
The Netherlands
|
Russia | Malaysia | Bolivia | |||||
Norway
|
United Arab | Singapore | Brazil | |||||
Spain
|
Emirates | South Korea | Mexico | |||||
Turkey |
||||||||
UK |
||||||||
Ukraine |
[A] | Commonwealth of Independent States. |
Shell interest, | 100% capacity million | |||||||||
direct and indirect (%) | tonnes per annum[A] | |||||||||
Australia North West Shelf |
Karratha | 22 | 11.9 | |||||||
Brunei LNG |
Lumut | 25 | 7.2 | |||||||
Malaysia LNG (Dua and Tiga) |
Bintulu | 15 | 14.6 | [B] | ||||||
Nigeria LNG |
Bonny | 26 | 21.6 | |||||||
Oman LNG |
Sur | 30 | 7.1 | |||||||
Qalhat (Oman) LNG |
Sur | 11 | 3.7 | |||||||
[A] | As reported by the operator. | |
[B] | Our interests in the Dua and Tiga plants are due to expire in 2015 and 2023 respectively. |
Shell interest, | 100% capacity million | |||||||||
direct and indirect (%) | tonnes per annum[A] | |||||||||
Australia NWS Train 5 |
Karratha | 22 | 4.4 | |||||||
Sakhalin II Train 1&2 |
Sakhalin Island | 27.5 | 9.6 | |||||||
Qatargas IV |
Ras Laffan | 30 | 7.8 | |||||||
Australia Pluto I |
Karratha | 31 | [B] | 4.3 | ||||||
[A] | As reported by the operator. | |
[B] | Based on 90% Woodside shareholding in the Pluto I plant. |
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Australia |
2.6 | 2.6 | 2.6 | 2.0 | 1.8 | |||||||||||||||
Brunei |
1.9 | 1.9 | 1.7 | 1.8 | 1.8 | |||||||||||||||
Malaysia |
2.3 | 2.1 | 2.0 | 1.9 | 1.5 | |||||||||||||||
Nigeria |
4.2 | 3.3 | 2.3 | 2.4 | 2.1 | |||||||||||||||
Oman |
2.2 | 2.2 | 2.1 | 2.1 | 2.1 | |||||||||||||||
Total |
13.2 | 12.1 | 10.7 | 10.2 | 9.3 | |||||||||||||||
LNG REGASIFICATION TERMINAL CAPACITY (At December 31, 2007) | 100% capacity (million tonnes per annum) | |||||||||||||||||||
Shell capacity rights | Capacity right | |||||||||||||||||||
Project name | Location | (million tonnes per annum) | period | Status | Start-up date | |||||||||||||||
Huelva |
Huelva, Spain | 0.2 | [A] | 2001-2008 | In operation | 1988 | ||||||||||||||
Cartagena |
Cartagena, Spain | 0.0 | [A] | 2002-2034 | In operation | 1989 | ||||||||||||||
Barcelona |
Barcelona, Spain | 0.9 | [A] | 2005-2020 | In operation | 1969 | ||||||||||||||
Hazira |
Gujarat, India | 1.5 | from 2005 | In operation | 2005 | |||||||||||||||
Altamira |
Altamira, Mexico | 3.3 | from 2006 | In operation | 2006 | |||||||||||||||
Cove Point |
Lusby, MD, USA | 1.8 | 2003-2023 | In operation | 2003 | |||||||||||||||
Elba Island |
Elba Island, GA, USA | 2.8 | 2006-2036 | [B] | In operation | 2006 | ||||||||||||||
Elba Expansion |
Elba Island, GA, USA | 4.5 | 2010-2035 | In construction | 2010 | |||||||||||||||
Costa Azul |
Baja California, Mexico | 3.8 | 2008-2028 | In construction | 2008 | |||||||||||||||
[A] | Capacity rights as at end 2007, which will change over capacity right period. | |
[B] | Capacity leased to third party until 2010. |
LNG GAS CARRIERS (At December 31)[A] | ||||||||||||||||||||||||||||||||||||||||
number of ships | thousand cubic metres | |||||||||||||||||||||||||||||||||||||||
Contract | 2007 | 2006 | 2005 | 2004 | 2003 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||||||||||||
Owned/demise-hire (LNG) |
6 | [A] | 6 | 6 | 6 | 5 | 797 | 797 | 797 | 797 | 662 | |||||||||||||||||||||||||||||
Time-Charter (LNG)[C] |
5 | [B] | 4 | [B] | 1 | 1 | | 849 | 573 | 145 | 145 | | ||||||||||||||||||||||||||||
Total |
11 | 10 | 7 | 7 | 5 | 1,646 | 1,370 | 942 | 942 | 662 | ||||||||||||||||||||||||||||||
[A] | One of these ships with a capacity of 139,000 cubic metres was held for sale at the end of 2007. | |
[B] | Three of these were on flexible charter based on market demand. | |
[C] | Excludes LNG ships owned or chartered by LNG joint ventures. |
Location | Shell interest % | 100% capacity (bbl/day) | Status | |||||||||||
Malaysia |
Bintulu | 72 | % | 14,700 | In operation | |||||||||
Pearl Train 1 |
Qatar | 100 | % | 70,000 | In construction | |||||||||
Pearl Train 2 |
Qatar | 100 | % | 70,000 | In construction | |||||||||
100% capacity | ||||||||||||
Location | Shell interest % | (tonnes/day) | ||||||||||
China |
Yueyang | 50 | 2,000 | |||||||||
Project name | Location | Capacity (MW) | Shell interest (%) | Status | ||||||||||||
Cabazon Pass |
California, USA | 41 | 50 | % | In operation | |||||||||||
Whitewater Hill |
California, USA | 62 | 50 | % | In operation | |||||||||||
Rock River |
Wyoming, USA | 50 | 50 | % | In operation | |||||||||||
Top of Iowa |
Iowa, USA | 80 | 50 | % | In operation | |||||||||||
White Deer |
Texas, USA | 80 | 50 | % | In operation | |||||||||||
Colorado Green |
Colorado, USA | 162 | 50 | % | In operation | |||||||||||
Brazos |
Texas, USA | 160 | 50 | % | In operation | |||||||||||
Harburg |
Harburg, Germany | 4 | 100 | % | In operation | |||||||||||
La Muela |
La Muela, Spain | 99 | 40 | % | In operation | |||||||||||
NoordzeeWind |
Egmond aan Zee, Netherlands | 108 | 50 | % | In operation | |||||||||||
Mount Storm Phase I |
West Virginia, USA | 164 | 50 | % | In construction | |||||||||||
Mount Storm Phase II |
West Virginia, USA | 100 | 50 | % | In construction | |||||||||||
| Segment earnings of $582 million. | |
| Filed regulatory permits to increase production to 462,000 (Shell share) barrels per day. | |
| Filed regulatory permits to increase upgrading capacity to 574,000 (Shell share) barrels per day. | |
| Completed integration of Shell Canadas oil sands activities into Shells downstream business. |
EARNINGS[A] | $ million | ||||||||||||
2007 | 2006 | 2005 | |||||||||||
Revenue (including intersegment sales) |
2,854 | 2,499 | 2,464 | ||||||||||
Purchases (including change in inventories) |
(1,010 | ) | (830 | ) | (623 | ) | |||||||
Depreciation |
(166 | ) | (172 | ) | (179 | ) | |||||||
Operating expenses |
(967 | ) | (722 | ) | (664 | ) | |||||||
Share of profit of equity-accounted investments |
| | | ||||||||||
Other income/(expense) |
(5 | ) | (1 | ) | 10 | ||||||||
Taxation |
(124 | ) | (123 | ) | (347 | ) | |||||||
Segment earnings from continuing operations |
582 | 651 | 661 | ||||||||||
Income/(loss) from discontinued operations |
| | | ||||||||||
Segment earnings |
582 | 651 | 661 |
[A] | As from 2007, the Oil Sands earnings are disclosed separately. Previously these were reported as part of Exploration & Production earnings. For comparison purposes, 2006 and 2005 earnings were reclassified accordingly. |
MINED OIL SANDS NET PRODUCTION[A] | thousand barrels/day | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Athabasca Oil Sands Project |
81 | 82 | 95 | |||||||||
[A] | Volumes represent Shells share of production (60%) net of royalty payments. |
PROVEN AND PROBABLE MINABLE OIL SANDS RESERVES | ||||||||||||
(At December 31) |
million barrels | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Shell subsidiaries |
||||||||||||
Net proven reserves[A] |
1,111 | 1,134 | 746 | |||||||||
Net probable reserves[B] |
362 | 341 | 119 | |||||||||
Net proven and probable reserves |
1,473 | 1,475 | 865 | |||||||||
[A] | Proven minable oil sands reserves are computed from dimensions revealed in drill holes and the bitumen grades are computed from the results of detailed sampling. The sites for inspection, sampling, and measurement are spaced so closely and the geological character is so well defined that size, shape, depth, and bitumen content of the reserves are well established. | |
[B] | Probable minable oil sands reserves are computed from information similar to that used for proven reserves, however, the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. Although the degree of assurance is less than that for proven reserves, it is sufficient to assume continuity between points of observation. |
| Segment earnings of $10.4 billion. | |
| Final investment decision taken to proceed with the 325,000 barrels per day expansion of the Motiva Port Arthur Refinery in the USA. | |
| Acquisition of Shell Canada minority interest. | |
| Retail growth in Ukraine, Malaysia and Scandinavia. | |
| Completion of the sale of the Los Angeles refinery and 250 service stations in the USA. | |
| Progress on the sale of three French refineries. | |
| Launch of Shell Sulphur Solutions. | |
| Creation of a new Future Fuels and CO2 business unit. |
EARNINGS | $ million | |||||||||||
2007 | 2006 | 2005 | ||||||||||
Revenue (including intersegment sales) |
286,072 | 251,309 | 253,853 | |||||||||
Purchases (including change in inventories) |
(252,763 | ) | (222,962 | ) | (223,482 | ) | ||||||
Depreciation |
(2,440 | ) | (2,580 | ) | (2,622 | ) | ||||||
Operating expenses |
(19,551 | ) | (18,389 | ) | (16,141 | ) | ||||||
Share of profit of equity-accounted investments |
2,221 | 1,712 | 1,713 | |||||||||
Other income/(expense) |
13 | 7 | 69 | |||||||||
Taxation |
(3,113 | ) | (1,972 | ) | (3,408 | ) | ||||||
Segment earnings from continuing operations |
10,439 | 7,125 | 9,982 | |||||||||
Income/(loss) from discontinued operations |
| | | |||||||||
Segment earnings |
10,439 | 7,125 | 9,982 |
COUNTRIES IN WHICH OIL PRODUCTS HAS OPERATIONS
|
||||||||
Europe
|
Africa | Sudan | Laos | Mexico | ||||
Austria
|
Algeria | Swaziland | Malaysia | Nicaragua | ||||
Belgium
|
Benin | Tanzania | New Zealand | Panama | ||||
Bulgaria
|
Botswana | Togo | Pakistan | Peru | ||||
Croatia
|
Burkina Faso | Tunisia | Philippines | Surinam | ||||
Czech Republic
|
Cape Verde | Uganda | Singapore | Venezuela | ||||
Denmark
|
Islands | Zimbabwe | South Korea | |||||
Finland
|
Cote dIvoire | Sri Lanka | The Caribbean | |||||
France
|
Djibouti | Middle East, | Taiwan | Dominican | ||||
Germany
|
Egypt | Russia, CIS[A] | Thailand | Republic | ||||
Gibraltar
|
Ethiopia | Iran | Vietnam | French Antilles & | ||||
Greece
|
Gabon | Oman | Guiana | |||||
Hungary
|
The Gambia | Russia | USA | Jamaica | ||||
Ireland
|
Ghana | Saudi Arabia | Puerto Rico | |||||
Italy
|
Guinea | Ukraine | Canada | Trinidad & | ||||
Luxembourg
|
Kenya | United Arab | Tobago | |||||
The Netherlands
|
Lesotho | Emirates | Latin America | |||||
Norway
|
Madagascar | Argentina | ||||||
Poland
|
Mali | Asia Pacific | Bolivia | |||||
Portugal
|
Mauritius | Australia | Brazil | |||||
Slovakia
|
Morocco | Brunei | Chile | |||||
Slovenia
|
Mozambique | China (including | Colombia | |||||
Spain
|
Namibia | Hong Kong) | Costa Rica | |||||
Sweden
|
Nigeria | Guam | Ecuador | |||||
Switzerland
|
La Réunion | India | El Salvador | |||||
Turkey
|
Senegal | Indonesia | Guatemala | |||||
UK
|
South Africa | Japan | Honduras |
[A] | Commonwealth of Independent States. |
| process safety; | |
| personal safety; | |
| environment; | |
| product quality; and | |
| costs and margin maximisation. |
| Ensure continued asset integrity and operational safety; | |
| Continue reshaping our portfolio by investing selectively in key markets and divesting non-strategic assets; | |
| Enhance focus on delivering operational excellence and being a cost leader in the downstream businesses; | |
| Reinforce our leading global brand position across the downstream businesses by focusing on initiatives such as differentiated fuels and second-generation biofuels; | |
| Continue to maximise the value of our integrated hydrocarbon supply chain by working towards a tighter integration of the Oil Products and Chemicals businesses; | |
| Discipline our capital spending; and | |
| Continue to develop our people. |
[A] | Source Kline Competitive Intelligence from the Global Lubricants Industry, 2006-2016. |
COST OF CRUDE OIL PROCESSED OR CONSUMED | $ per barrel | ||||||||||||||||||||
Cost of crude oil processed or consumed (including upstream margin on crude supplied by | |||||||||||||||||||||
Shell and equity-accounted investment exploration and production companies) | 2007 | 2006 | 2005 | 2004 | 2003[A] | ||||||||||||||||
Total |
71.83 | 60.46 | 48.24 | 37.22 | 26.75 | ||||||||||||||||
OPERABLE CRUDE OIL DISTILLATION CAPACITY [B] | thousand barrels/calendar day [C] | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Europe |
1,815 | 1,823 | 1,822 | 1,835 | 1,808 | ||||||||||||||||
Other Eastern Hemisphere |
953 | 927 | 899 | 1,050 | 1,072 | ||||||||||||||||
USA |
835 | 893 | 893 | 964 | 1,014 | ||||||||||||||||
Other Western Hemisphere |
350 | 348 | 350 | 350 | 361 | ||||||||||||||||
Total |
3,953 | 3,991 | 3,964 | 4,199 | 4,255 | ||||||||||||||||
CRUDE OIL PROCESSED [D] | thousand barrels daily [C] | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Europe |
1,644 | 1,641 | 1,701 | 1,688 | 1,712 | ||||||||||||||||
Other Eastern Hemisphere |
765 | 751 | 802 | 943 | 916 | ||||||||||||||||
USA |
789 | 874 | 855 | 951 | 974 | ||||||||||||||||
Other Western Hemisphere |
299 | 303 | 315 | 319 | 323 | ||||||||||||||||
Total |
3,497 | 3,569 | 3,673 | 3,901 | 3,925 | ||||||||||||||||
Shell share of equity-accounted investments |
392 | 417 | 455 | 451 | 515 | ||||||||||||||||
REFINERY PROCESSING INTAKE [E] | thousand barrels daily [C] | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Crude oil |
3,496 | 3,617 | 3,722 | 3,946 | 3,949 | ||||||||||||||||
Feedstocks |
283 | 245 | 259 | 216 | 218 | ||||||||||||||||
3,779 | 3,862 | 3,981 | 4,162 | 4,167 | |||||||||||||||||
Europe |
1,731 | 1,732 | 1,804 | 1,770 | 1,776 | ||||||||||||||||
Other Eastern Hemisphere |
811 | 808 | 849 | 962 | 956 | ||||||||||||||||
USA |
879 | 956 | 953 | 1,055 | 1,079 | ||||||||||||||||
Other Western Hemisphere |
358 | 366 | 375 | 375 | 356 | ||||||||||||||||
Total |
3,779 | 3,862 | 3,981 | 4,162 | 4,167 | ||||||||||||||||
REFINERY PROCESSING INTAKE | million tonnes per year | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Metric equivalent |
185 | 189 | 195 | 204 | 204 | ||||||||||||||||
REFINERY PROCESSING OUTTURN [F] | thousand barrels daily [C] | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Gasolines |
1,363 | 1,444 | 1,492 | 1,542 | 1,575 | ||||||||||||||||
Kerosenes |
366 | 368 | 382 | 424 | 418 | ||||||||||||||||
Gas/Diesel oils |
1,190 | 1,215 | 1,256 | 1,297 | 1,312 | ||||||||||||||||
Fuel oil |
348 | 346 | 391 | 414 | 378 | ||||||||||||||||
Other |
593 | 597 | 567 | 557 | 550 | ||||||||||||||||
Total |
3,860 | 3,970 | 4,088 | 4,234 | 4,233 | ||||||||||||||||
[A] | Cost figures for 2003 are provided on a US GAAP basis. | |
[B] | Shell average operating capacity for the year and excluding mothballed capacity. | |
[C] | One barrel daily is equivalent to approximately 50 tonnes a year, depending on the specific gravity of the crude oil. | |
[D] | Including natural gas liquids; includes processing for others and excludes processing by others. | |
[E] | Including crude oil and natural gas liquids plus feedstocks processed in crude oil distillation units and in secondary conversion units. | |
[F] | Excluding own use and products acquired for blending purposes. |
OIL SALES[A] | thousand barrels per day | |||||||||||||||||||
Product volumes | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Europe |
||||||||||||||||||||
Gasolines |
501 | 563 | 569 | 576 | 616 | |||||||||||||||
Kerosines |
205 | 207 | 223 | 220 | 194 | |||||||||||||||
Gas/Diesel oils |
834 | 859 | 920 | 934 | 936 | |||||||||||||||
Fuel oil |
178 | 153 | 196 | 179 | 184 | |||||||||||||||
Other products |
168 | 191 | 185 | 203 | 207 | |||||||||||||||
Total |
1,886 | 1,973 | 2,093 | 2,112 | 2,137 | |||||||||||||||
Other
Eastern
Hemisphere[B][C] |
||||||||||||||||||||
Gasolines |
368 | 356 | 318 | 337 | 315 | |||||||||||||||
Kerosines |
168 | 167 | 174 | 168 | 166 | |||||||||||||||
Gas/Diesel oils |
455 | 450 | 470 | 511 | 489 | |||||||||||||||
Fuel oil |
141 | 140 | 151 | 168 | 180 | |||||||||||||||
Other products |
151 | 114 | 119 | 136 | 138 | |||||||||||||||
Total |
1,283 | 1,227 | 1,232 | 1,320 | 1,288 | |||||||||||||||
USA[D] |
||||||||||||||||||||
Gasolines |
851 | 845 | 1,068 | 1,372 | 1,343 | |||||||||||||||
Kerosines |
166 | 168 | 236 | 258 | 212 | |||||||||||||||
Gas/Diesel oils |
257 | 232 | 368 | 430 | 430 | |||||||||||||||
Fuel oil |
39 | 51 | 107 | 209 | 189 | |||||||||||||||
Other products |
174 | 175 | 234 | 247 | 218 | |||||||||||||||
Total |
1,487 | 1,471 | 2,013 | 2,516 | 2,392 | |||||||||||||||
Other Western Hemisphere |
||||||||||||||||||||
Gasolines |
260 | 247 | 263 | 293 | 296 | |||||||||||||||
Kerosines |
71 | 71 | 74 | 73 | 72 | |||||||||||||||
Gas/Diesel oils |
242 | 237 | 251 | 249 | 243 | |||||||||||||||
Fuel oil |
63 | 65 | 77 | 85 | 86 | |||||||||||||||
Other products |
36 | 37 | 43 | 44 | 52 | |||||||||||||||
Total |
672 | 657 | 708 | 744 | 749 | |||||||||||||||
Export
sales[E] |
||||||||||||||||||||
Gasolines |
198 | 195 | 186 | 182 | 193 | |||||||||||||||
Kerosines |
146 | 136 | 104 | 114 | 154 | |||||||||||||||
Gas/Diesel oils |
507 | 328 | 287 | 274 | 213 | |||||||||||||||
Fuel oil |
283 | 338 | 313 | 208 | 181 | |||||||||||||||
Other products |
163 | 160 | 121 | 130 | 138 | |||||||||||||||
Total |
1,297 | 1,157 | 1,011 | 908 | 879 | |||||||||||||||
Total
product
sales[D] |
||||||||||||||||||||
Gasolines |
2,178 | 2,206 | 2,404 | 2,760 | 2,763 | |||||||||||||||
Kerosines |
756 | 749 | 811 | 833 | 798 | |||||||||||||||
Gas/Diesel oils |
2,295 | 2,106 | 2,296 | 2,398 | 2,311 | |||||||||||||||
Fuel oil |
704 | 747 | 844 | 849 | 820 | |||||||||||||||
Other products |
692 | 677 | 702 | 760 | 753 | |||||||||||||||
Total |
6,625 | 6,485 | 7,057 | 7,600 | 7,445 | |||||||||||||||
[A] | Sales figures exclude deliveries to other companies under reciprocal sale and purchase arrangements, which are in the nature of exchanges. Sales of condensate and natural gas liquids are included. | |
[B] | Since 1966, a Shell entity has a 25% interest in Pars Oil Company, a joint venture that blends and markets lubricants. Pars Oil Company owns 51% in Pars and Shell Company (PASH), which markets and distributes Shell branded lubricants in Iran. A Shell entity also has a 49% in PASH. | |
[C] | Shell operates in Sudan through The Shell Company of the Sudan Limited (Shell Sudan), which is an indirect wholly owned subsidiary of Royal Dutch Shell. Shell Sudans activities consist of the sale of fuels and lubricants to retail and commercial customers. Shell Sudan also sold aviation fuels prior to the disposition of this activity in 2005. Shell does not hold any oil or gas reserves in Sudan. | |
[D] | Certain contracts are held for trading purposes and reported net rather than gross with effect from Q3 2005. The effect in 2007 is a reduction in oil product sales of approximately 805 thousand b/d, 844 thousand b/d in 2006 and 424 thousand b/d in 2005. | |
[E] | Export sales as a percentage of total oil sales amounts to 19.6% in 2007, 17.8% in 2006, 14.3% in 2005, 11.9% in 2004 and 11.8% in 2003. |
SALES BY PRODUCT AS PERCENTAGE OF TOTAL PRODUCT SALES | % | |||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Gasolines |
32.9 | 34.0 | 34.1 | 36.3 | 37.1 | |||||||||||||||
Kerosines |
11.4 | 11.6 | 11.5 | 10.9 | 10.7 | |||||||||||||||
Gas/Diesel oils |
34.7 | 32.5 | 32.5 | 31.6 | 31.1 | |||||||||||||||
Fuel oil |
10.6 | 11.5 | 12.0 | 11.2 | 11.0 | |||||||||||||||
Other products |
10.4 | 10.4 | 9.9 | 10.0 | 10.1 | |||||||||||||||
Total |
100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||
TOTAL OIL SALES VOLUMES[A] | thousand barrels per day | |||||||||||||||||||
Oil products by geographical area | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Europe |
||||||||||||||||||||
Germany |
667 | 732 | 771 | 772 | 785 | |||||||||||||||
France |
266 | 280 | 268 | 275 | 283 | |||||||||||||||
UK and Republic of Ireland |
250 | 252 | 323 | 311 | 313 | |||||||||||||||
The Netherlands |
187 | 183 | 199 | 191 | 180 | |||||||||||||||
Others |
516 | 526 | 532 | 563 | 576 | |||||||||||||||
Total |
1,886 | 1,973 | 2,093 | 2,112 | 2,137 | |||||||||||||||
Other Eastern Hemisphere |
||||||||||||||||||||
Australia |
242 | 221 | 222 | 215 | 190 | |||||||||||||||
Others |
1,041 | 1,006 | 1,010 | 1,105 | 1,098 | |||||||||||||||
Total |
1,283 | 1,227 | 1,232 | 1,320 | 1,288 | |||||||||||||||
USA[A] |
1,487 | 1,471 | 2,013 | 2,516 | 2,392 | |||||||||||||||
Other Western Hemisphere |
||||||||||||||||||||
Canada |
288 | 288 | 300 | 287 | 276 | |||||||||||||||
Brazil |
197 | 180 | 179 | 170 | 168 | |||||||||||||||
Others |
187 | 189 | 229 | 287 | 305 | |||||||||||||||
Total |
672 | 657 | 708 | 744 | 749 | |||||||||||||||
Export sales |
1,297 | 1,157 | 1,011 | 908 | 879 | |||||||||||||||
Total oil
products[A] |
6,625 | 6,485 | 7,057 | 7,600 | 7,445 | |||||||||||||||
[A] | Certain contracts are held for trading purposes and reported net rather than gross with effect from Q3 2005. The effect in 2007 is a reduction in oil product sales of approximately 805 thousand b/d, in 2006 844 thousand b/d and in 2005 424 thousand b/d. |
REVENUE |
$ million | |||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003[A] | ||||||||||||||||
by product |
||||||||||||||||||||
Gasolines |
75,387 | 65,910 | 62,189 | 55,594 | 44,830 | |||||||||||||||
Kerosines |
26,060 | 23,485 | 21,775 | 16,308 | 10,826 | |||||||||||||||
Gas/Diesel oils |
80,458 | 68,899 | 63,357 | 48,304 | 35,344 | |||||||||||||||
Fuel oil |
14,972 | 13,948 | 13,218 | 9,688 | 8,424 | |||||||||||||||
Other products |
23,160 | 20,182 | 17,505 | 15,279 | 13,834 | |||||||||||||||
Total oil products |
220,037 | 192,424 | 178,044 | 145,173 | 113,258 | |||||||||||||||
by
geographical
area[B] |
||||||||||||||||||||
Europe |
65,697 | 60,755 | 55,968 | 44,010 | 35,618 | |||||||||||||||
Other Eastern Hemisphere |
43,986 | 37,869 | 31,705 | 25,725 | 19,957 | |||||||||||||||
USA |
49,598 | 44,370 | 49,574 | 46,500 | 34,533 | |||||||||||||||
Other Western Hemisphere |
23,679 | 21,465 | 19,957 | 15,116 | 12,751 | |||||||||||||||
Export
sales[B] |
37,077 | 27,965 | 20,840 | 13,822 | 10,399 | |||||||||||||||
Total oil products |
220,037 | 192,424 | 178,044 | 145,173 | 113,258 | |||||||||||||||
[A] | Figures for 2003 are provided on a US GAAP basis. | |
[B] | By country of destination, except where the ultimate destination is not known at the time of sale, in which case the sales are shown as export sales. |
AVERAGE PRODUCT REVENUE |
$ per barrel | |||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003[A] | ||||||||||||||||
by product |
||||||||||||||||||||
Gasolines |
94.81 | 81.85 | 70.88 | 55.03 | 44.46 | |||||||||||||||
Kerosines |
94.44 | 85.97 | 73.52 | 53.52 | 37.18 | |||||||||||||||
Gas/Diesel oils |
96.04 | 89.61 | 75.61 | 55.04 | 41.90 | |||||||||||||||
Fuel oil |
58.29 | 51.20 | 42.91 | 31.17 | 28.14 | |||||||||||||||
Other products |
91.51 | 81.64 | 68.29 | 54.95 | 50.30 | |||||||||||||||
Total oil products |
90.97 | 81.30 | 69.12 | 52.19 | 41.68 | |||||||||||||||
by geographical area |
||||||||||||||||||||
Europe |
95.42 | 84.36 | 73.21 | 56.93 | 45.67 | |||||||||||||||
Other Eastern Hemisphere |
93.91 | 84.55 | 70.52 | 53.30 | 42.45 | |||||||||||||||
USA |
91.35 | 82.65 | 67.48 | 50.48 | 39.56 | |||||||||||||||
Other Western Hemisphere |
96.60 | 89.47 | 77.28 | 55.51 | 46.64 | |||||||||||||||
Export sales |
78.25 | 66.25 | 56.48 | 41.57 | 32.41 | |||||||||||||||
Total oil products |
90.97 | 81.30 | 69.12 | 52.19 | 41.68 | |||||||||||||||
[A] | Figures for 2003 are provided on a US GAAP basis. |
OIL
TANKERS[A]
(At December 31) |
||||||||||||||||||||||||||||||||||||||||
number of ships | million deadweight tonnes | |||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||||||||||||||
Owned/demise-hired |
||||||||||||||||||||||||||||||||||||||||
VLCCs (very large crude carriers over 160,000 dwt) |
| | 4 | 5 | 7 | | | 1.2 | 1.5 | 2.1 | ||||||||||||||||||||||||||||||
Large range (45,000 to 160,000 dwt) |
8 | 11 | 13 | 11 | 13 | 0.7 | 0.9 | 0.8 | 0.7 | 0.9 | ||||||||||||||||||||||||||||||
Medium range (25,000 to 45,000 dwt) |
5 | 5 | 5 | 5 | 5 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||||||||||||||
General
purpose (10,000 to 25,000 dwt)/ Specialist |
4 | 5 | 5 | 2 | 3 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||
Total |
17 | 21 | 27 | 23 | 28 | 1.0 | 1.2 | 2.3 | 2.5 | 3.3 | ||||||||||||||||||||||||||||||
Time-chartered[B][C] |
||||||||||||||||||||||||||||||||||||||||
VLCCs (very large crude carriers over 160,000 dwt)[D] |
7 | 7 | 1 | 1 | 1 | 2.1 | 2.1 | 0.3 | 0.3 | 0.3 | ||||||||||||||||||||||||||||||
Large range (45,000 to 160,000 dwt) |
31 | 22 | 18 | 19 | 15 | 2.6 | 1.9 | 1.6 | 1.7 | 1.3 | ||||||||||||||||||||||||||||||
Medium range (25,000 to 45,000 dwt) |
14 | 14 | 14 | 8 | 13 | 0.5 | 0.5 | 0.5 | 0.3 | 0.5 | ||||||||||||||||||||||||||||||
General
purpose (10,000 to 25,000 dwt)/ Specialist |
25 | 24 | 13 | 12 | 10 | 0.4 | 0.4 | 0.3 | 0.2 | 0.2 | ||||||||||||||||||||||||||||||
Total |
77 | 67 | 46 | 40 | 39 | 5.6 | 4.9 | 2.7 | 2.5 | 2.3 | ||||||||||||||||||||||||||||||
Total oil tankers |
94 | 88 | 73 | 63 | 67 | 6.6 | 6.1 | 5.0 | 5.0 | 5.6 | ||||||||||||||||||||||||||||||
Owned/demise-hired
under construction or on
order[E] |
1 | 1 | 1 | 3 | | 0.1 | | 0.1 | 0.3 | | ||||||||||||||||||||||||||||||
LPG GAS CARRIERS[A][F]
(At December 31) |
||||||||||||||||||||||||||||||||||||||||
number of ships | thousand cubic metres | |||||||||||||||||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||||||||||||||
Owned/demise-hired (LPG) |
| | | 1 | 1 | | | | 60 | 59 | ||||||||||||||||||||||||||||||
Time-chartered (LPG) |
3 | 2 | 2 | 2 | 2 | 212 | 166 | 136 | 136 | 136 | ||||||||||||||||||||||||||||||
Total |
3 | 2 | 2 | 3 | 3 | 212 | 166 | 136 | 196 | 195 | ||||||||||||||||||||||||||||||
[A] | Oil tankers, ocean going articulated tug barges and gas carriers of 10,000 dwt and above which are owned/chartered by subsidiaries where the equity shareholding is at least 50%. | |
[B] | Time-chartered oil tankers include consecutive voyage charters. | |
[C] | Contracts of affreightment are not included. | |
[D] | Four of the time-chartered VLCCs are directly manned and managed by subsidiaries. | |
[E] | Owned/demise hired new building contracts not in service but due for delivery post December 31, 2007. | |
[F] | LNG shipping is covered under the Gas & Power Operating and Financial Review. |
| Strong financial performance with segment earnings of $2.1 billion. | |
| Full year of operations at the Nanhai petrochemical complex with high operating rate. | |
| Construction on schedule of the new world-scale ethylene cracker and mono-ethylene glycol (MEG) plant in Singapore. |