Reporting centre 2013

Annual Report
and form 20-F

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Sustainability
Report

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Investors’
Handbook


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our year in brief

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What do we do?

Building an energy future

Global energy demand is rising and so are consumer expectations – more people want energy from cleaner sources. At Shell we work with others to unlock new energy sources and squeeze more from what we have. We do this in responsible and innovative ways. In building a better energy future we all have a part to play. Shell is doing its part.

About Shell

Shell is an innovation-driven global group of energy and petrochemical companies. Our aim is to help meet the energy needs of society in ways that are economically, environmentally and socially responsible.

Read more about building a sustainable energy future

Our businesses

We find and extract crude oil, natural gas and bitumen, and transform them into products for sale to retail and commercial customers.

We provide gas for cooking, heating and electrical power; fuels and lubricants for transport; and chemical products for plastics, coatings, detergents and many other applications.

Read more about our businesses

What is our strategy?



Our strategy seeks to reinforce our position as a leader in the oil and gas industry.

Our aim

We aim to grow our cash flow and deliver competitive returns through economic cycles, to finance a competitive dividend and fund investment for future growth. Safety and environmental and social responsibility are at the heart of our activities.

Our focus

We are using a clear set of strategic themes to guide decisions about investment and technology:

  • our upstream and downstream “engines”, mature businesses that generate the bulk of our cash flow.
  • our growth priorities: integrated gas and deep water, that play to our strengths in technology.
  • our opportunities for the longer term, including gas and oil in tight rock and shale, heavy oil, and in the Arctic, Iraq, Kazakhstan and Nigeria.
Read more about our strategy and outlook

Read more about sustainability and our business strategy

What is happening
in our markets?

Rising demand for energy

30-40%
Growth in energy demand by 2035

LNG demand
is set for strong growth

Global primary energy demand is set to grow by between 30% and 40% by 2035, according to projections by the International Energy Agency. Large numbers of people in emerging economies are expected to benefit from higher incomes, and the world’s population will continue to expand, increasing total energy consumption.

When it comes to developing new energy supplies, integrated gas remains a core priority. In particular, global demand for liquefied natural gas (LNG) is set for strong growth, as more governments around the world recognise the environmental advantages of gas-fired power. When used to replace coal, gas can sharply reduce emissions of pollutants such as nitrogen oxides and particulates, as well as CO2.

This can make a real difference, especially in Asia's rapidly expanding cities.

Read more about our market overview

Who are our people?

Investing in our people

2013 employees by geographical area
Average numbers in thousand

To help meet the world's rising energy needs, we have continued to invest in new supplies, in technology and in our people.

During 2013, Shell employed an average of 92,000 people in more than 70 countries. We continued to recruit externally to execute our strategy and growth plans for the future, hiring approximately 1,200 graduates and 3,200 experienced professionals.

The majority of each came from technical disciplines. More than 30% of our graduate recruits came from universities outside Europe and the Americas in response to increasing demand for skilled people in other regions.

We have a culture that embraces diversity and fosters inclusion. We actively monitor representation of women and local nationals in senior leadership positions.

Read more about our people

What are our
sustainability priorities?



Our success in business depends on our ability to meet a range of environmental and social challenges.

We must show we can operate safely and manage the effect our activities can have on neighbouring communities and society as a whole. If we fail to do this, we may incur liabilities or sanctions, lose opportunities to do business, our reputation as a company may be harmed, and our licence to operate may be impacted.

The Shell General Business Principles include a commitment to sustainable development that involves balancing short- and long-term interests, and integrating economic, environmental and social aspects into our business decisions.

We have rigorous standards and a firm governance structure in place to help manage potential impacts. We also work with communities, business partners, non-governmental organisations and other bodies to address potential impacts and share the benefits of our operations and projects.

Read more about our environment and society

Read more about our social investment

How did our projects develop?



In 2013, we delivered several important new projects.

Downstream

In Downstream, for example, we took further steps to meet growing long-term demand for chemical and lubricant products in Asia’s growth markets. In China, we opened a grease manufacturing plant, while in Singapore we decided to expand our Jurong Island petrochemicals plant.

Read more about our projects in Downstream


Upstream

Our portfolio of deep-water oil and gas projects went from strength to strength. In Brazil, we bid successfully with partners for the Libra field, and started production at the second phase of Parque das Conchas (BC-10), which Shell operates and which is one of the world’s most challenging deep-water projects.

We had exploration success in the deep waters of the Gulf of Mexico, with our Vicksburg exploratory well making a notable oil discovery. Also in the Gulf of Mexico, we worked towards the start of production in early 2014 at our new Mars B development.

With demand for LNG set for rapid growth, we moved to strengthen our leadership position within the industry. In January 2014, we completed the purchase from Repsol of new LNG positions in the Atlantic and Pacific regions, increasing Shell’s worldwide equity LNG capacity by around one-fifth.

There were also significant developments in Iraq, including the Majnoon field, one of the world’s largest oil fields. With our partners, we reached commercial production. We also began operations at the Basrah Gas Company, the biggest natural gas project in the country’s history, as well as the world’s largest flare-reduction project. It captures gas that is being flared from three oil fields in southern Iraq.

We will continue to invest in new projects. These will not only be the foundation of our future competitiveness, but also help to supply the world's growing energy needs.

Read more about our projects in Upstream