Profile: Royal Dutch Shell PLC (RDSb.N)
9 Dec 2016
Royal Dutch Shell plc (shell), incorporated on February 5, 2002, is an independent oil and gas company. The Company explores for crude oil and natural gas across the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company is engaged in the principal aspects of the oil and gas industry in approximately 70 countries. The Company operates in three segments: Upstream, Downstream and Corporate. Its Upstream segment focuses on exploration for new crude oil and natural gas reserves and on developing new projects. In Downstream, the Company focuses on turning crude oil into a range of refined products, which are moved and marketed around the world for domestic, industrial and transport use. The Company sells various products, which include gasoline, diesel, heating oil, aviation fuel, marine fuel, liquefied natural gas (LNG) for transport, lubricants, bitumen and sulfur. It also produces and sells ethanol from sugar cane in Brazil.
The Company's Upstream segment combines the operating segments Upstream International and Upstream Americas. The Company extracts bitumen from mined oil sands, which the Company converts into synthetic crude oil. The Company liquefies natural gas by cooling it and transports LNG to customers around the world. It also converts natural gas to liquids (GTL) to provide fuels and other products, and it markets and trades crude oil and natural gas (including LNG) in support of its Upstream businesses. Shell subsidiaries, joint ventures and associates are involved in all aspects of upstream activities, including matters, such as land tenure, entitlement to produced hydrocarbons, production rates, royalties, pricing, environmental protection, social impact, exports, taxes and foreign exchange. The conditions of the leases, licenses and contracts under, which oil and gas interests are held vary from country to country.
The Company's Upstream International business manages Shell's Upstream activities outside the Americas. The Company explores for and extracts crude oil, natural gas and natural gas liquids, transports oil and gas, and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream International also manages the LNG and GTL businesses outside the Americas, and markets and trades natural gas, including LNG, outside the Americas. It manages its operations primarily by line of business, with this structure overlaying country organizations. The Company's Upstream Americas business manages Shell's Upstream activities in North and South America. Upstream Americas also extracts bitumen from oil sands that is converted into synthetic crude oil. It manages the LNG business in the Americas, including assets in Peru and Trinidad and Tobago. It also markets and trades natural gas in the Americas. In addition, it manages the United States wind business.
The Company's Downstream business manages Shell's oil products activities, consisting refining, trading and supply, pipelines and marketing, and chemicals activities. In addition, the Company produces and sells petrochemicals for industrial use across the world. Its marketing activities include retail, lubricants, business-to-business (B2B) and alternative energies. In trading and supply, the Company trades crude oil, oil products and petrochemicals, to optimize feedstock for refining and chemicals, to supply its marketing businesses and third parties. The Company has interests in over 20 refineries across the world with the capacity to process a total of approximately 3.1 million barrels of crude oil per day. Trading and supply trades in physical and financial contracts, lease storage and transportation capacities, and manages shipping and wholesale commercial fuel activities globally. Across approximately 100 countries, the Company produces, markets or sells lubricants for passenger cars, motorcycles, trucks and coaches, and for industrial machinery in the manufacturing, mining, power generation, agriculture and construction sectors.
The Company has a global lubricants supply chain with a network of over eight base oil manufacturing plants, 40 lubricant blending plants, 10 grease plants and four gas-to-liquids base oil storage hubs. Through its marine activities, the Company primarily provides lubricants along with fuels and related technical services, to the shipping and maritime sectors. Its B2B activities encompass the sale of fuels and specialty products and services to a range of commercial customers. Its plants produce a range of base chemicals, including ethylene, propylene and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide and ethylene glycol. It has capacity to produce approximately six million tons of ethylene a year.
Royal Dutch Shell PLC
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