2%Our share of the world’s oil production
3%Our share of the world’s gas production
$14.7 BILLIONIncome in 2014
$45 BILLIONCash flow from operating activities
$37.3 BILLIONNet capital investment
$14.3 BILLIONPaid globally in income taxes
$3.9 BILLIONRoyalties paid to governments
$72.7 BILLIONCollected excise duties and sales tax
Our income in 2014 was $14.7 billion and we returned $11.8 billion to our shareholders through dividends. Our total capital investment of $37.3 billion will help to build and sustain our business for the future and we made divestments of $14 billion from our non-core portfolio. We also spent $1.2 billion on our research and development programme.
Shell generated $45.0 billion of cash flow from its operating activities in 2014. Our SEC proved reserves replacement ratio (RRR) was 26% for 2014 and our three-year average RRR was 67% from 2012 to 2014. Our average organic RRR was around 85% over the last three years. The organic RRR excludes volume changes due to acquisitions, divestments and price effects and represents our ability to internally maintain and grow production.
In 2014, we started up Bonga North West (Shell interest 55%), off the coast of Nigeria. The Gumusut-Kakap platform in Malaysia (Shell interest 29%) started exporting oil to shore. In the Gulf of Mexico, first oil flowed from our Cardamom project (Shell interest 100%) and Olympus, our largest floating deep-water platform in the Gulf of Mexico, began production of oil from Mars B (Shell interest 71.5%). These four projects combined have the potential to deliver around 300,000 barrels of oil a day at peak production (100%).
We successfully integrated the part of the Repsol LNG portfolio that we acquired into our business.
Shell’s oil and gas production in 2014 was 3.1 million barrels of oil equivalent a day, down 4% from 2013. Our sales of liquefied natural gas increased to around 24 million tonnes: this increase of 22% from 2013 mainly reflects the contribution from the acquisition of part of the Repsol LNG portfolio. Exploration and commercial activities continued to add potential resources. This underpins our long-term growth plan.
Shell scorecard
In 2014, sustainable development continued to account for 20% of the company scorecard, which helps determine the annual bonus levels for all our employees. In 2014, the Shell Executive Committee’s sustainable development measures also accounted for 20% of their scorecard. This was split evenly between Shell’s safety and environmental performance, including targeted measures covering operational spills, energy intensity and use of fresh water. From 2015, Process Safety Tier 1 events will be introduced as a new measure, receiving the same percentage weighting as personal safety. Process safety and personal safety will receive a weighting of 5% each, the volume of operational oil spills and energy intensity will be weighted at 4% each, and fresh water use will be weighted at 2%.
Targets are set each year by the Board’s Remuneration Committee taking into account the performance achieved in the last three years, to incentivise continuous and sustained improvement. In 2014, our performance was better than the target for all sustainable development measures and our strongest results to date.
