SHELL WORLD AUTUMN 2013
Commemorative issue
50
Shell Centre at
A look at the past, present and future of
the iconic Shell Centre building in London.
Also in this issue...
Slow steam ahead
How Shell’s Marine Products
business is helping shipping firms
weather the downturn.
Invest for success
CEO Peter Voser is named
Petroleum Executive of the Year.
Time for safety
A global round-up of events
for this year’s Safety Day.
1
WelCome
autumn 2013
dear readers,
i’m pleased to be able to welcome you to
this edition of Shell World uK magazine
where we celebrate the 50th anniversary
of Shell Centre, our iconic headquarters on
the South bank in london.
it’s great to be able to take a brief
moment to pause, reflect and look back,
and this special anniversary has given
us all the chance to do that and focus
on the significance of the uK for Shell.
it’s worth remembering that the uK houses
the headquarters of the downstream
organisation, the global headquarters
of the treasury activities and our trading
organisation. no trivial thing.
the celebrations this summer at Shell
Centre and tobacco dock have also been
a chance to look forward. We’re aiming to
redevelop the South bank site and bring the
pioneering spirit of Shell back to this area of
london. the plan is to bring all our london
offices together in a single location, which
i think is really exciting and will create a
vibrant working environment. We want to
recapture the spirit we had 50 years ago
when we first came to the South bank.
as well as celebrating the anniversary
of an iconic building, we have also taken the
opportunity to celebrate that Shell is full of
great people. it is humbling to think of all our
technology ‘firsts’ and businesses successes
over the past 50 years. i often think we’re
standing on the shoulders of giants. i’m
sure we have more to come as we meet the
energy challenge of the 21st century.
ed daniels
uK Country Chair
COntEntS
Shelley hoppe
editor
Shelley.Hoppe@shell.com
+44 (0)20 7934 3100
Sarah robinSon
managing editor
Sarah.robinson@shell.com
+44 (0)20 7934 8786
to contact the magazine
Shell World uK,
CA-CX, Shell Centre,
London SE1 7nA
email
Shellworlduk@shell.com
Website address
www.shell.co.uk/shellworlduk
SubSCriptionS
Add your details to our distribution list via
our website at www.shell.co.uk/signup
or write to us at shellworlduk@shell.com
produCtion
this magazine is printed on Cocoon
100 Offset which is made from 100%
recovered fibre, certified in accordance
with the FSC (Forest Stewardship Council)
and is manufactured to the iSO 14001
international standard, minimising negative
impacts on the environment. it is also a
Carbon Balanced Paper – where the carbon
intensity has been measured through the
production process and an equivalent
carbon credit (offset) has been purchased.
965854–PCOEL–11/2013
© 2013 Shell international B.V.
Shell World uK magazine | auTumn 2013
On ITS COmPLETIOn,
SHELL CEnTrE WAS THE
TALLEST BuILDIng In THE uK.
dear readerS...
This issue is packed with Shell
achievements: Shell Centre turning
50, the new Bank Street Technical
Hub opening, CEO Peter Voser’s
big award and everyone’s efforts
to make this year’s Safety Day
a success.
All reasons to be proud to work
at Shell. If you have any feedback,
we’d love to hear from you. Write
to us at shellworlduk@shell.com
Shelley Hoppe,
Editor
2
03
25
03
SHELL CEntrE At 50
A look at the past, present and future of
the iconic Shell Centre building in London.
07
50 YEArS, 50 PLACEMEntS
Why work experience took on new
meaning this year at Shell Centre.
09
nEWS in BriEf
An update from Lisa Davis and big
thinking at the Offshore Europe event.
11
inVEStinG in
tOMOrrOW’S tALEnt
15
How Shell is funding innovative thinking
at select uK universities.
13
LOnDOn rOCKS
What the new technical hub at Bank Street
means for Shell in the uK.
15
SLOW StEAM AHEAD
21
How Shell’s Marine Products business is
helping shipping firms weather the downturn.
80% Of THE THIngS ArOunD yOu HAVE
BEEn TrAnSPOrTED TO THE uK By SHIP.
21
tiME fOr SAfEtY
A global round-up of events
from this year’s Safety Day.
23
inVESt fOr SuCCESS
CEO Peter Voser is named
Petroleum Executive of the Year.
25
PEArL Of WiSDOM
Station Officer tony O’Hara on
how he helps keeps Pearl GtL safe.
3
CovEr STory
the golden anniverSary oF Shell’S
london headquarterS iS a ChanCe
to reminiSCe and plan For the Future.
4
50
SHELL CEntrE At
Shell World uK magazine | auTumn 2013
5
Golden anniversaries of any sort are a
cause for celebration. 2013 saw Shell Centre
in London turn 50, an event marked in June
by a lunchtime party in the building itself
and a black-tie event at tobacco Dock.
the milestone has been a chance to reminisce.
in 1948, the South Bank in London was
a mess of bomb-damaged and derelict
buildings. the site was levelled in preparation
for the festival of Britain. After the festival
had taken place in 1951, a plan was set in
motion to continue the regeneration of the
South Bank. Shell Centre, designed by
Sir Howard robertson, was a key part of this
plan. robertson’s concept was for a building
the like of which the uK had never seen
before and he looked across the Atlantic
for inspiration. During 1955, representatives
from the group responsible for the construction
of the new Shell Centre building went on a
fortnight’s visit to new York to study the latest
technical developments in office building
construction and mechanics.
a pioneering high rise
On its completion, Shell Centre was the
tallest building in the uK and was the first
major air-conditioned office block to be
constructed in Europe. it was also one of
the first to draw on natural resources to help
reduce energy demands, using water from
the thames to cool the building to limit
demand on the air-conditioning system.
Shell Centre was officially opened in
1963 and offered staff a variety of perks.
Lillian Johns joined Shell in 1971 as a tea
lady and ended her career with Shell as
Head of Events, taking retirement in 2006.
Shell World uK magazine | auTumn 2013
the party at tobacco Dock was a chance
for her to share some of her memories.
“Myself and my colleagues felt incredibly
lucky to work at Shell. We had free meals,
and wine was served with lunch in the
canteen,” she says. “there was a sports club,
theatre and on the first floor a hairdresser,
a travel agent and a branch of Lloyds bank.
“When i joined Shell in 1971, the smoking
policy was that there wasn’t one,” Lillian
continues. “You could smoke where you
liked – in shared offices, in the coffee lounge,
at your desk… We were all given ashtrays
embossed with the Shell pecten. there would
be a disco on friday nights held in the staff
canteen – we’d get DJs who were famous
then, like Emperor rosco, playing the music.”
Future plans
times change. Shell Centre’s Hungerford,
York and Chicheley ‘wings’ now need to
be redeveloped. the long corridors and
small offices are not suitable for the more
open-plan, collaborative environment
essential for Shell’s London workforce.
Major redevelopment plans have been in
the pipeline since as far back as 2004 and
in May 2013 Shell received recommendation
for approval from Lambeth Council.
However, in September the application was
unexpectedly called in by the Secretary
of State. the move had caused a delay
but the company is working with the
government office towards a positive outcome.
Whatever happens, the Shell Centre tower
will remain a key feature of London’s South
Bank – as iconic now as it was when it was
built 50 years ago.
01: Evening entertainers on stilts.
02: nitrogen ice cream, anyone?
03 & 04: Guests enjoyed
retro food and drinks.
05: Wall artwork from each of the decades.
06: Shellissimo, the Shell choir in action.
6
mySELf AnD my COLLEAguES fELT InCrEDIBLy LuCKy
TO WOrK AT SHELL. WE HAD frEE mEALS, AnD WInE
WAS SErVED WITH LunCH In THE CAnTEEn.
LILLIAn JOHnS, rETIrED
04
06
01
Shell Centre
at Completion
WaS the
talleSt
building in the uK
the FirSt
02
major airConditioned
03
oFFiCe bloCK to be
ConStruCted in europe
one oF the FirSt to draW on
natural
reSourCeS
05
to help reduCe energy demandS
uSing Water From the thameS
to Cool the building
Shell World uK magazine | auTumn 2013
7
SHEll In THE uk
50 YEArS
50 PLACEMEntS
Shell World uK magazine | auTumn 2013
8
01
02
03
04
01: naomi Walters.
02: Kory Williams.
03: Peter Sequeira.
As part of the 50-year anniversary celebrations at Shell Centre,
50 young students had the opportunity throughout the summer
to take part in work placements across the business.
Shell has offered work experience to young
students for the past four years, targeting
students from ethnic minority backgrounds in
London. this year, however, something a little
different has taken place. to tie in with the
50th anniversary of Shell Centre, Sounez
Charles was tasked with finding work
placements for 50 youngsters aged between
16 and 21 from a range of different schools
and institutions, during the summer months.
“Previously, we invited groups of
eight students to work together on a single
project,” says Sounez. “this year, they
were placed individually to take on real
work and to develop skills in areas they
have an interest in.
“finding the Shell teams to participate
was the hardest challenge but i had some
good support from Human resources.”
On their first day, each student had a
half-day induction with Sounez and Hr
colleagues who volunteered to attend.
“We talked about ways of working, the
importance of confidentiality, how to send
an email or schedule a meeting with the
normal pleasantries you’d use – using
business language not SMS language.
these are all new skills for the students.”
Once the youngsters had spent two
weeks with their teams, they spent the final
week focusing on soft skills and personal
development before giving a presentation
in front of senior leaders on their last day.
it was an eye-opener for many of the
students. “A lot of them are so shy on their
first day but during their placement they
really come out of themselves,” says Sounez.
the feedback from Shell staff has also
been positive. “Sometimes the young people
ask a question that sparks something the
staff member has never thought of before.
it’s been a real win-win.”
THE WHOLE ExPErIEnCE
WAS BrILLIAnT AnD IT’S
grEAT TO HAVE SHELL
On my CV.
DEnzEL JACK, STuDEnT
04: Denzel Jack.
THE STuDEnT PErSPECTIVE
naomi Walters, 16, recently completed her
gCSEs at St martin-in-the-fields High School
for girls in London and worked in the uK
Country Chair office. “I helped to prepare the
briefing documents for the opening of the Bank
Street Technical Hub. It was great because I
felt like I was making a real contribution to
Shell – I was able to stand back and think
‘I did that!’”
Peter Sequeira, 16, is a pupil at the
Haberdashers’ Aske’s Boys’ School in
Hertfordshire. He’s torn between a career in
engineering or law. His placement was with
the Commercial Aviation team. “my placement
taught me that it’s possible to do a degree in
one thing and end up doing a job in something
else. Whatever I choose I will still have other
options open.”
kory Williams is 21 and recently graduated
with a performing arts degree from Edge Hill
university, Liverpool. He worked in the Shell
Enterprise Services Data Architecture Team.
“People were always happy to help or answer
questions. I found it interesting to hear how
people at Shell can alter their career path
and try different things within the company.”
Denzel Jack, 15, recently completed his
gCSEs at Chadwell Heath Academy in
romford, Essex, and worked with the pensions
team. “The whole experience was brilliant and
it’s great to have Shell on my CV. I’m going to
do A-levels, go to uni, and if I’m lucky enough
I’ll do the Shell grad recruitment programme.”
Shell World uK magazine | auTumn 2013
9
neWS in brieF
autumn 2013
SPEAKIng TO THE LArgEST OffSHOrE EurOPE
COnfErEnCE On rECOrD, SHELL LEADErS OuTLInED THE
ImPOrTAnCE Of THE uK TO mEETIng EnErgy CHALLEngES.
POSitiVE
EnErGY
01: Andy Brown,
upstream international Director.
02: Glen Cayley,
upstream VP uK and ireland.
Shell World uK magazine | auTumn 2013
Offshore Europe is a bi-annual event for people
in the oil and gas industry. it’s a chance for
attendees to meet suppliers, discover the latest
technological innovations and gain insight from
industry leaders. this year’s event was the largest
in its history, attracting around 60,000 visitors –
an increase of over 25% on 2011. During the
four-day show in September more than
2,000 people visited the Shell stand, with
the recruitment zone proving a key attraction.
upstream international Director Andy Brown
and upstream VP uK and ireland Glen Cayley
were there to provide some thought leadership.
they took the opportunity to highlight the
importance of the uK oil and gas industry and
Shell’s north Sea experience to meet current
and future energy demand.
Andy joined a discussion on the role of the
international oil companies (iOCs), national oil
companies (nOCs) and independents over the
next 50 years.
He said iOCs had played a pivotal role in
globalising the oil and gas industry, beginning
five decades ago with the unlocking of the
north Sea.
“in the late 1960s and early 1970s, we
conquered the rough and inhospitable north
Sea, and the challenges we faced then were
just as unsurpassable as the ones we face today
with ever deeper, more remote and challenging
locations,” he said. “today, the scale and
complexity in engineering and project
management are unprecedented. And unlocking
new resources from complex, high-pressure,
deepwater or extreme environments demands
pioneering technology innovation.
“the ability to innovate and the confidence
and capability to execute at scale continues to
differentiate iOCs.”
Meanwhile, Glen Cayley chaired a panel
session on Oil and Gas in the future Energy Mix,
exploring the role of hydrocarbons and examining
some of the issues faced by the industry.
“Demand for oil and gas has never been
higher and our industry has a vital contribution
to make in unlocking available and affordable
energy supplies,” he told the audience. “the uK
is here to play its part but needs to address a
number of challenges including lower production
rates and aging infrastructure.”
10
tHE futurE’S BriGHt
LiSA DAViS iS EXECutiVE ViCE PrESiDEnt, DOWnStrEAM StrAtEGY,
POrtfOLiO, CO2 AnD ALtErnAtiVE EnErGiES; SHE tOOK On tHE LAttEr
PArt Of tHE rOLE WHEn GrAHAM VAn’t HOff MOVED On frOM HiS
rOLE AS uK COuntrY CHAir.
01
02
DEmAnD fOr OIL
AnD gAS HAS nEVEr
BEEn HIgHEr AnD Our
InDuSTry HAS A VITAL
COnTrIBuTIOn TO mAKE
In unLOCKIng AVAILABLE
AnD AffOrDABLE
EnErgy SuPPLIES.
gLEn CAyLEy, uPSTrEAm VP uK AnD IrELAnD
nearly a year into the job, the CO2 aspect
of the role has been restructured leaving Lisa
with the none-too-small task of Downstream
Strategy and Portfolio and Alternative Energies
to focus on.
She explained: “Strategy and Portfolio
is about having a broad overview of the
downstream business and trying to understand,
from a forward-looking perspective, what it
takes to be successful and positioning the
portfolio to achieve that success. Alternative
Energies involves looking at the energies that
will be required by society years from now and
growing the businesses to meet those needs.”
Lisa has a wealth of experience in the oil
industry, beginning in Exxon as a production
engineer in the Alaska team 20 years ago.
Before taking up her current role at Shell,
Lisa was responsible for delivering the growth
strategy for Shell’s bulk fuels and lubricants
businesses in the Americas, including the uS,
the world’s largest lubricants market.
it’s an industry that still excites her.
“Whether you look at upstream or downstream,
the energy industry continues to achieve new
levels of competitiveness and to leverage
technology to create new value. it’s an industry
that continues to seek out opportunities in
new locations and new ways of recovering
hydrocarbons and bringing them to market.
And i expect that to continue.
“Within downstream we are working hard
to ensure we engage more seamlessly across
different areas of the business and realise much
more success,” she said.
Lisa is excited about the future for Shell in
the uK and around the world: “there’s a lot
of good stuff happening in the business today
and if you look at our performance versus our
potential there’s still a lot of room to create even
more value and be even more successful.”
WHETHEr yOu LOOK uPSTrEAm
Or DOWnSTrEAm, THE EnErgy
InDuSTry COnTInuES TO ACHIEVE
nEW LEVELS Of COmPETITIVEnESS
AnD TO LEVErAgE TECHnOLOgy
TO CrEATE nEW VALuE.
LISA DAVIS,
ExECuTIVE VP, DOWnSTrEAm STrATEgy
Shell World uK magazine | auTumn 2013
11
SHEll In THE uk
inVEStinG in
tOMOrrOW’S
tALEnt
Shell is strengthening
its relationship with
a number of key
universities in the uK –
it’s a long-term strategy
that aims to benefit
both the company
and the institutions.
01: Professor nigel Brandon,
Director of the Energy futures Lab at imperial.
Shell World uK magazine | auTumn 2013
in October, Shell and the university of
Cambridge signed an agreement that will
enable them to collaborate on a wide range
of new research projects. the work will focus
on how to make energy more affordable
and environmentally sustainable, capitalising
on Cambridge’s expertise as a centre
for energy research and building on the
relationship between Shell and the university
that has existed for decades. Back in 1945,
Shell made an Endowment available to the
university of Cambridge to support Chemical
Engineering. today, Professor Lynn Gladden
currently holds the position of Shell Chair
of Chemical Engineering at the university.
this latest announcement is part of a
wider strategy that began in 2010, when
Shell undertook a global review of how
it interacted with universities both as a
research partner and as a graduate recruiter.
While Shell’s relationships with further
education institutions in the uK were sound,
it was felt that the company was spreading
itself a bit ‘thin’. “We came to the conclusion
that we were working with too many
research institutions,” says Malcolm Salisbury,
Manager, External research innovation.
Part of his role is to foster collaborations
and seek new areas of research that could
turn into fruitful partnerships. “We developed
a new strategy after the review in order to
get maximum value from our expenditure
and attract quality recruits as well.”
the strategy focuses investment, in terms
of finance and relationship building, on a
smaller list of uK universities to allow for
deeper connections to be made. the uK
is a key market for top-class facilities and
graduates: it has 10 universities in the top
12
100 in the world and three in the top 10
(second only to the uS in terms of the number
of leading universities).
the revised strategy also involves a new
way of thinking. recently within Shell, there
has been a shift in attitude to a model of
‘open innovation’. “What this means is
recognising that there are people in the
outside world who may have better expertise
than we have in Shell, and then leveraging
that expertise to help drive our internal
technology development,” explains Malcolm.
“Historically, companies would do all of
their research in-house, which is the closed
innovation model.”
Taking the long view
Shell is taking a long-term view with its
recent investments in Cambridge, Oxford,
Heriot-Watt and imperial. Professor nigel
Brandon is Director of the Energy futures
Lab at imperial. Shell sponsors the Energy
Lab. “the sponsorship supports us in terms
of what we are trying to do to develop
PhD training,” says nigel. “One of our
big aims is to provide additional context
and learning opportunities for all our PhD
students interested in the energy sector –
give them a chance to do additional things
that they wouldn’t normally do but that are
still relevant.” in September 2013, Shell
announced plans for a new university
technology Centre at imperial to focus on
the research, development, education and
application of scientific knowledge relating
to lubricants and fuels.
Professor Joe Cartwright explains how
Shell funds will be put to use at the new
Geoscience Laboratory at Oxford: “We’re
trying to tackle some of the more fundamental
problems about how fluids migrate
through basins, and we’re working on
a novel research avenue that could have
implications for shale gas developments.”
Another key aspect of the partnership
between Shell and Oxford is a mutual
desire to attract top talent from China.
“the people that we have attracted for our
research group are stellar, because of the
Shell brand,” says Joe.
the new Shell Centre for Exploration
Geoscience at Heriot-Watt in Edinburgh
will provide an opportunity to undertake new,
fundamental, geoscientific research, according
to Professor John underhill, who will head up
the centre. “the results will help further our
understanding of the development, evolution
and deformation of sedimentary basins,”
he says. this is industry relevant research
in a key area of hydrocarbon exploration.
Investing in the future
today’s relationship between Shell and the
uK universities is managed in a very structured
way. A senior manager heads up a small team
that is dedicated to each of the universities.
for example, uK Country Chair Ed Daniels
heads up the team for imperial; Executive Vice
President, Shell Chemicals Graham Van’t Hoff
heads up the Oxford team; and upstream
international Director Andy Brown heads
up the Cambridge team.
the recent agreement with Cambridge
and the other top uK institutions illustrates Shell’s
commitment to a more sustained approach to
research. the company is working to strengthen
long-term relationships with the world’s top
universities to deliver – at speed – future
technologies that could be a benefit to all.
Sounds like a sound investment.
WE DEVELOPED A nEW STrATEgy In
OrDEr TO gET mAxImum VALuE frOm
Our ExPEnDITurE AnD ATTrACT quALITy
rECruITS AS WELL.
mALCOLm SALISBury, mAnAgEr, ExTErnAL rESEArCH InnOVATIOn
Shell World uK magazine | auTumn 2013
13
InnovaTIon
LOnDOn
rOCKS
introduCing the neW Shell banK Street
teChniCal hub: bringing Shell CloSer to
itS CuStomerS and aCademiC partnerS.
A flick of a switch on the 3D glasses and the
slice of ocean floor on the big screen immediately
sharpens into focus. the group of bespectacled
visitors that are gathered in the ‘data visualisation
room’ comprises academics, civil servants
and business leaders. Everyone is here to
celebrate the launch of Shell’s new Bank
Street technical Hub and to get a taste of
some of the advanced technology that Shell’s
geologists and geoscientists use to explore for
new sources of oil and gas from the heart of
London’s financial district.
Talent under one roof
the decision to locate the hub in London is a
strategic one. Shell uK Chairman Ed Daniels
explains: “the capital houses many of our
most important customers and our partners in
academia. not only that, it offers graduates
science and technology careers here in the heart
of London, and brings together approximately
100 of Shell’s best technical talent under
one roof, which allows for collaboration
between employees.”
Ceri Powell, Executive Vice President,
Shell Exploration, co-hosted the opening of
the new technical hub: “the uK is an important
recruitment arena for Shell Exploration
because some of the very best geologists and
geoscientists are educated at uK universities.
Shell World uK magazine | auTumn 2013
Plus, London is considered by many to be the
oil and gas hub of Europe and our presence
here will further increase our competitiveness
and growth opportunities.”
the new hub will also bring together
people from different parts of Shell’s business.
from upstream, explorers will look after most
of the company’s exploration activity in the
uK, Europe and russia – from developing
an exploration investment concept to handing
over a fully appraised discovery to Shell
development staff.
for the downstream business, the hub will
serve as a base for some of Shell’s leading
scientists and specialists, allowing for closer
collaboration with London-based business
partners and academics.
Shell Projects and technology Director
Matthias Bichsel believes this will facilitate an
exchange of ideas. “it’s a great opportunity to
create new relationships between colleagues
with both upstream and downstream teams under
one roof. An informal chat over a cup of coffee
may be all it takes to spark an idea or make a
connection that leads to something valuable.”
Strengthening our future
the opening of the new hub is designed to
strengthen Shell’s position in Europe, and in
particular the north Sea – one of the mature
businesses that Ceri says “will underpin our
financial performance to at least the end of
this decade. Shell has been a leading player
in the north Sea for over 30 years, using
our technology to maximise production from
existing oil and gas fields and to develop
new resources.”
it is cutting-edge technology of the kind
experienced by the audience at the launch
that is crucial to Shell’s future. Ceri says:
“using technical it as a critical competitive
enabler, we are able to find new energy
resources in challenging geologies and
geographies, and optimise production across
our global assets to create more value for
customers and partners.”
And those customers and partners are now
a bit closer possibly than they were before.
As Matthias said at the launch: “Don’t hesitate
to beat a path to our door. We’re in the
neighbourhood now.”
14
DID yOu KnOW?
Shell WaS the
largEST
EnErgy
InvESTor
in reSearCh and
development betWeen
2008 and 2012, Spending
about $1.3bn laSt year.
Shell iS one oF the
WorlD’S largEST
EnErgy ExPlorErS.
it iS Currently ConduCting
SeiSmiC SurveyS and drilling
WellS in more than 40 CountrieS.
Shell maKeS an important
Contribution to energy Supply
in the uK through itS operationS
in the north Sea. it produCeS
12% oF uk
oIl anD gaS
and operateS inFraStruCture
that CarrieS 35% oF the gaS
Coming into the uK.
IT’S A grEAT OPPOrTunITy TO CrEATE nEW rELATIOnSHIPS
BETWEEn COLLEAguES WITH BOTH uPSTrEAm AnD
DOWnSTrEAm TEAmS unDEr OnE rOOf.
mATTHIAS BICHSEL, SHELL PrOJECTS & TECHnOLOgy DIrECTOr
Shell World uK magazine | auTumn 2013
15
FuTurE EnErgy
SLOW StEAM AHEAD
the Shipping induStry SuFFered during the reCeSSion but Shell marine produCtS
ContinueS to innovate to help itS CuStomerS Cope With the ChallengeS.
Shell World uK magazine | auTumn 2013
16
PEOPLE STOPPED BuyIng AS mAny TELEVISIOnS, CArS Or nEW SOfAS,
SO THE SHIPS WErEn’T nEEDED TO TrAnSPOrT THOSE THIngS frOm THE
fACTOrIES Or TO SHIP THE rAW mATErIALS TO THE mAnufACTurErS.
DAVID HILL, KEy ACCOunT mAnAgEr, mArInE LuBrICAnT SALES
looK around you.
Whether you are in your
oFFiCe at WorK or the
KitChen at home, 80% oF
the thingS around you
have been tranSported
to the uK by Ship.
And the price we pay for consumer goods in
this country is affected by what is happening
to the global shipping industry. in part, you
can measure the health of the global economy
by looking at the state of the companies that
operate the vessels that get our stuff from A to B.
“the shipping industry had a fantastic time
leading up to the financial crisis in 2008,” says
David Hill, Key Account Manager for Marine
Lubricant Sales in the uK. “then, in simple terms,
people stopped buying as many televisions, cars
or new sofas, so the ships weren’t needed to
transport those things from the factories or to
ship the raw materials to the manufacturers.”
the problem of lack of demand was
compounded by a surfeit of supply. “in the
10 years leading up to the crash, shipping
companies expected that the good times would
go on forever,” says Jan toschka, Manager,
Marine Products Europe/Africa. “they ordered
more and more vessels. if a shipyard is busy it
can take three to four years to build a new ship,
so companies were ordering in advance.
then the crash happened and suddenly there
were all these new vessels in the water that
nobody really needs right now.”
the industry saw a 50% drop in freight rates
but running costs remained the same. to cope,
shipping firms turned to what is known as ‘slow
steaming’. the economy slowed down and so
did the ships – literally.
“the ship owners needed to find as many
ways as possible to cut costs,” explains Jan.
“Just as an example, if your large container
Shell World uK magazine | auTumn 2013
17
FuTurE EnErgy
01
If yOu OnLy OPErATE THE EngInE AT VEry LOW
PErCEnTAgE Of ITS CAPACITy (uLTrA SLOW STEAmIng),
THE TImE BETWEEn TWO rEfrESHmEnTS Of LuBE OIL
CAn THEOrETICALLy BE uP TO TWO mInuTES.
JAn TOSCHKA, mAnAgEr, mArInE PrODuCTS EurOPE/AfrICA
02
vessel sails with 22 knots (close to full steam)
it consumes some 150 tonnes of fuel per day.
if you reduce speed down to 18 knots (slow
steam), the same vessel consumes half of
the fuel. Most operators slow steam these
days; increasingly more even do ‘ultra
slow steaming’.”
the result is a significant saving on fuels
and lubricants, but the engine is put under
a particular kind of stress.
“if a ship is operating at full steam the engine
will make 80 revolutions per minute. typically
the quantity of lubricant injections depends
on engine load and number of revolutions,”
explains Jan. “if you only operate the engine at
very low percentage of its capacity (ultra slow
steaming), the time between two refreshments of
lube oil can theoretically be up to two minutes.
“the ability of the lubricant to neutralise
sulphur depends on the refreshment rate, which
means that during these two minutes, ability
deteriorates remarkably.”
Shell World uK magazine | auTumn 2013
How is Shell helping?
So, where does Shell Marine Products fit
into all this? the company develops and
sells lubricants around the world – Shell has
been developing marine lubricants since the
beginning of the last century. these days Shell
has the Marine and Power innovation Centre,
based in Hamburg, where new products are
tested and developed. in particular the factors
that contribute to the ‘oil stress’ of a lubricant,
heat or humidity for example, are tested to see
how they impact on performance. in 2012,
Shell scientists developed a new product called
Shell Alexia S4 that could combat all the types
of stress created by ships going slowly.
Sulphur content in marine fuel is also a key
issue for shipping companies. new regulation
governing sulphur levels in fuel used in some
areas, including the north Sea, is due to
come into force in January 2015, with
reduced sulphur levels required for ships
globally by 2020.
18
Shipping:
in numberS
10,000+
veSSelS aCroSS the globe
have lubriCantS Supplied
by Shell marine produCtS
80%
oF the thingS
around you have
been tranSported
to the uK by Ship
Shell marine produCtS
uSeS a netWorK oF...
500
portS in...
Ship operatorS Will have to
burn loW Sulphur Fuel, and that
requireS diFFerent lubriCation.
03
“Ship operators will have to burn low
sulphur fuel, and that requires different
lubrication because the neutralisation capacity
doesn’t have to be as high,” says Jan. “this is
where Shell is leading technologically because
we have developed a new additive technology
able to cope with a wide range of different
sulphur contents. this reduces complexity for
the crew on board the vessel.”
A new product is currently in development,
due to launch in 2014, that will be able to
cope with the low levels of sulphur content
required by the new 2015 regulations.
it should help to reduce costs for shipping
firms still smarting from the financial crash.
“there are small signs of recovery but it will
be a while before we see a return to the boom
times of 2005/2006,” says David Hill.
47
CountrieS
10 million
running hourS CloCKed
up in the paSt year For
Shell alexia S4 lubriCant
20-yEar
heritage in the
underStanding oF
oil StreSS in Fourand tWo-StroKe
engineS helped
build Shell
alexia S4
01: Shell PAE Laboratory, Hamburg, Germany 2009.
02: Checking the sample collected in the modified marine diesel engine.
03: Observing grease in the rheometer, a device for testing the flow and
elastic characteristics of complicated fluids like grease and many oils.
Shell World uK magazine | auTumn 2013
19
SHEll In THE uk
CLEAn, LEAn
AnD GrEEn
the St fergus Gas Plant has won a respected
environmental award for its comprehensive
approach to waste management.
in 2009, the Shell St fergus gas plant in
Aberdeenshire produced nearly 3,500 tonnes
of waste – a significant increase on the
previous two years caused by an extensive
rejuvenation project. it would have been easy
enough to see the spike as a blip due to the
renovations. However the plant’s management
team decided to use it as an opportunity
to overhaul St fergus’s entire approach to
waste management.
Alex Baird, Operations and Maintenance
Manager for northern Systems and Plants
(nSP) and formerly the Plant Manager for
St fergus, says: “the biggest change we made
was appointing a dedicated waste coordinator
to understand all the waste streams, help us
reduce what we produced and identify what
could be recycled instead of going into landfill.
“We embarked on a systematic Waste
Minimisation Project to make sure we fully
adopted the waste hierarchy: reduce,
reuse, recycle.”
the results have been impressive.
in 2010, the total amount of waste went
down to 2,598 tonnes and last year the
figure was 1,512 tonnes.
additional savings
Savings have also been made by reusing
166 tonnes of MEG (the glycol used to remove
hydrates produced during gas production)
from the subsea Goldeneye pipeline at Shell’s
Bacton plant; by reducing waste in effluent
tanker loads through better management,
sampling and reporting; and by reusing
soil resulting from borehole excavation
work at St fergus.
All staff have been trained in waste
awareness across their work, from avoiding
industrial spills to recycling food waste.
Shell World uK magazine | auTumn 2013
Alex says: “instead of going to landfill our
food waste and canteen consumables are now
fully compostable and collected by a local firm.
they turn it into compost within 12 weeks,
diverting 150 tonnes of food waste away
from landfill in 2012.”
General waste is now packaged up
and shipped to Shetland where it is burnt as
fuel to heat homes, businesses and schools.
Since the start of this initiative in April 2012,
more than 30 tonnes of general waste have
been diverted from landfill.
the improvements recently earned the plant
Scottish Gold Winner of the uK Green Apple
Awards, which were launched in 1994 by
the Green Organisation, an independent not-forprofit group that recognises environmental best
practice around the world. “We’ve also been
awarded an ‘excellent’ rating by the Scottish
Environmental Protection Agency for the past
two years,” says Alex, “and we are on track
to get it again this year.”
20
gEnErAL WASTE IS nOW PACKAgED
uP AnD SHIPPED TO SHETLAnD WHErE
IT IS BurnT AS fuEL TO HEAT HOmES.
WaSte not, Want not:
helping the Community
St Fergus donated several electric motors
to a local college for training purposes.
At the time of going to press, St fergus
had reached the final for the green
Apple uK awards, held at the
Houses of Parliament on 11 november.
The remaining waste is dealt with
either via waste to energy, treatment,
incineration or discharge under consent.
the plant’s toner cartridges are now
sent for reuse and the money raised is
donated to ChaS (Children’s hospice
association Scotland).
St Fergus supports Can do in
Fraserburgh and Wood recyclability
in pitmedden, both charitable organisations
employing people with physical or
mental disabilities. in 2012 a staggering
1,550 tonnes of drinks cans were sent
to Can do and almost 55,000 tonnes of
wood were sent to Wood recyclability.
ST FErguS
InSTEAD Of gOIng
TO LAnDfILL Our fOOD
WASTE AnD CAnTEEn
COnSumABLES ArE nOW
fuLLy COmPOSTABLE AnD
COLLECTED By A LOCAL fIrm.
ALEx BAIrD,
OPErATIOnS AnD mAInTEnAnCE mAnAgEr nSP
Shell World uK magazine | auTumn 2013
21
InnovaTIon
I WAS EnCOurAgED By THE LEVEL Of EngAgEmEnT
AnD CrEATIVITy I SAW DurIng THE rECEnT SAfETy DAy
ACTIVITIES – On BOTH PErSOnAL AnD PrOCESS SAfETy.
PETEr VOSEr, CEO
Shell World uK magazine | auTumn 2013
22
Safety in action
Among a wide range of activities, Shell Centre
in London hosted three first aid training sessions,
with employees from finance receiving first-hand
CPr (cardiopulmonary resuscitation) training
for use in the event of an emergency, such as
someone choking or drowning.
there was a safety brainstorming session
at a Shell service site in Deptford, London.
Shell’s General Manager for network Planning
richard Jory attended the event. “i was impressed
how each person stated how their attitude to
safety had changed over the years; in particular
how rushing was no longer part of their routine,”
he says. “Watching the group assess practical
risks and then deal with them was also a good
education for me.”
Across the world, Shell teams responded
with creative and insightful ways to highlight
safety. in tunisia, staff held role-playing
exercises focusing on the three Golden rules
of safety (Comply, intervene and respect).
in Malaysia, staff took part in quizzes on the
Life-Saving rules and other safety requirements
on site. Meanwhile, a safety booth contest and
an online educational game based on safety
practices took place in the Philippines.
S.
AK
O LE
.N
RM
HA
NO
it’s an annual homage to safety – Shell Safety
Day. Since its launch in 2007, Safety Day has
become a key fixture in Shell’s calendar and
a major driver for the company’s Goal Zero –
no Harm and no Leaks policy, which targets
‘no harm’ to people and the environment,
and ‘no leaks’ from Shell’s operations.
this year’s Safety Day activities saw tens of
thousands of employees and contractors gather
in locations around the world to share ideas
and best practice. the day was a chance for
everyone to take part in light-hearted activities
that hammer home a very serious safety message.
ZERO
AKS.
NOLE
A series of interactive
events highlighted a serious
message at this year’s
global Shell Safety Day.
GOAL
RM.
NOHA
tiME fOr
SAfEtY
ZERO
GOAL
GOAL ZERO
HAR
NO
M.
NO
KS.
LEA
it is hoped that Shell staff will take what
they’ve learned as a result of Safety Day in
June and apply it to their jobs on a daily basis.
Shell CEO Peter Voser says: “i was encouraged
by the level of engagement and creativity i saw
during the recent Safety Day activities – on both
personal and process safety.”
While Shell has a good safety track
record, there is more to be done. Goal Zero
is still just a goal. But with Safety Day at the
forefront of people’s minds, the aim is to
make it a reality.
SaFety day eventS
around the World
dozens of Shell staff and contractors
took part in sessions in ankara,
turkey, including one on fire safety,
which discussed how Shell addresses
this in offices and other locations with
smoke detectors, sprinklers and
emergency response plans.
at the qatar pearl gtl site more than
1,000 staff and contractors signed
a copy of the pearl goal zero vision
and Commitments and stuck it to giant
‘goal zero’ letters (pictured opposite).
Shell russia’s upstream and
downstream locations and joint
venture offices embraced Safety
day in a discussion about the
12 life-Saving rules, including
how individual actions can have
unintended consequences for
the safety of others.
Shell World uK magazine | auTumn 2013
23
SHEll In THE uk
inVESt fOr SuCCESS
$37
THE WorlD WILL nEED TO InVEST
TrILLIOn
In global EnErgy InfrASTruCTurE
BETWEEn 2012 AnD 2035*
THE gLOBAL EnErgy SySTEm IS In THE EArLy STAgES
Of A HISTOrIC TrAnSfOrmATIOn. THE BEST WAy TO
rESPOnD IS By InVESTIng In THE fuTurE.
Shell World uK magazine | auTumn 2013
*According to the iEA
24
aS peter voSer iS named petroleum exeCutive oF the year, he deliverS
a Keynote SpeeCh on the induStry’S role in ‘Keeping the lightS on’
and itS partiCular inveStment prioritieS – the biggeSt oF WhiCh iS people.
01
02
03
01: Peter Voser, CEO accepting his award.
02 & 03: A render of the fLnG and a
picture of the Oil Sands project in Canada,
two examples of Shell investing in the future.
CEO Peter Voser found himself in the spotlight
on 30 September 2013 when, in London,
he was named Petroleum Executive of the Year.
the award, administered by Energy intelligence
Group, recognises outstanding executive
leadership in the energy forum. the selection
process for the award begins when Energy
intelligence asks the heads of the 100 largest oil
companies for their nominations. A committee of
previous award winners, including fu Chengyu
from Sinopec Corp. and J.S. Gabrielli from
Petrobras, and other former senior oil executives,
then vote on the nominations.
“it is an honour to receive the award,
especially since the recipient is chosen by one’s
peers,” said Peter, speaking at the presentation,
where he accepted the award “on behalf of the
thousands of dedicated people who work for
Shell around the world”.
He continued: “theodore roosevelt once
said: ‘far and away the best prize that life has
to offer is the chance to work hard… at work
worth doing.’ We should never lose sight of the
vital importance of the work we do – providing
the energy that powers the world.”
thomas Wallin, Editor-in-Chief and Executive
Vice President of Energy intelligence, said:
“Peter Voser has delivered on his aims of
streamlining the Shell organisation, getting
costs under control, and further restoring the
company’s reputation for project management.”
Peter’s leadership was cited as a key factor
in Shell’s commitment to the growing importance
of natural gas in the global energy mix and he
was also lauded for staying steady and focused
during the last few turbulent years.
Peter received the award at the Oil & Money
conference, where he delivered a keynote
speech. He expanded on the importance of
the role that the energy industry has to play in
‘keeping the lights on’ for future generations,
in particular its responsibility to invest to meet
the growing global demand for energy.
“According to the iEA, the world will need
to invest some $37 trillion in the global energy
infrastructure between 2012 and 2035.
that works out at an average of $1.6 trillion
a year or around $30 billion a week.”
Peter continued by outlining the priorities
for the energy industry in light of these figures.
“Our first priority must be to invest heavily in new
supplies and to maintain [the industry] through
economic and political turbulence. failing to
do so would be a sure path to another supply
crunch and major price volatility.
“the cornerstone of this investment must be
a sound balance sheet – one strong enough to
withstand volatile energy prices and revenues
and flexible enough to underpin billions of
dollars of investment in new energy sources.”
Part of any investment, Peter said, must
be made in innovation and new technology:
“During difficult times, it’s possible to lose sight
of why this matters. this is especially true in our
industry, where scaling up technologies can take
decades. But innovation is a precious investment
in our future competitiveness.”
Investing in the future
However Peter acknowledged that without the
right people, innovation would not be possible.
“Perhaps the best way to invest in the future is
to invest in our people. We need people with
the technical and operational skills to build and
manage difficult projects. And safety management
must be at the core of their expertise. it’s vital to
restoring public trust and confidence in our industry.
“it’s true that our industry faces strong short-term
pressures,” he concluded. “But we also face an
inescapable reality: the global energy system
is in the early stages of a historic transformation.
the best way to respond is by investing in
the future – in new supplies, in new
technology and in our people.”
IT IS An HOnOur TO
rECEIVE THE AWArD,
ESPECIALLy SInCE THE
rECIPIEnT IS CHOSEn
By OnE’S PEErS.
PETEr VOSEr, CEO
Shell World uK magazine | auTumn 2013
25 SHELL JOBS
PEArL Of WiSDOM
I WOuLD nOT ASK Any Of THE
CrEW TO DO AnyTHIng THAT
I WOuLD nOT BE PrEPArED TO
DO mySELf, AnD I WOuLD nEVEr
PuT THE guyS AT rISK.
TOny O’HArA, STATIOn OffICEr, PEArL gTL
Shell World uK magazine | auTumn 2013
26
from Middlesbrough to russia,
to Libya and now Qatar, meet
Station Officer tony O’Hara who
helps keep the mammoth Pearl
Gas-to-Liquids (GtL) Plant safe.
Station Officer tony O’Hara has a cool head.
He needs it to oversee safety at Pearl GtL in
Qatar. it’s the largest gas-to-liquids plant in
the world using extreme pressure to convert
natural gas into cleaner-burning fuels.
tony draws on decades of safety and
fire-fighting expertise in one of the world’s
toughest petrochemical environments to
carry out his job. He oversees a continuous
training programme designed to prevent
incidents. tony has coached thousands of
supervisors who in turn train the workforce;
by early 2011, employees had followed
some 367,500 training sessions in practical
subjects such as working at heights.
tony also trains and supervises Pearl GtL’s
Emergency response division, a unit he
helped establish shortly after joining the
multi-billion dollar project in 2010.
“the crews are trained to handle any
scenario,” says tony. “this means making
sure they’re ready to respond in the event
of an incident that might involve rescue
operations or fire-fighting.”
Career path
tony almost began his career as a police
dog handler but instead followed in his
father’s footsteps, joining chemicals firm
iCi in Middlesbrough in 1975. “in its
day iCi was very similar to Shell in that you
were treated like you belonged to a family
and not just a person working for them.”
His career has since included stints in
Libya and braving the freezing temperatures
in russia.
“Before i joined Shell i’d been involved
in serious toxic gas leaks and major fires.
My most dangerous moment was a fire
in Libya in 2003 when a pipeline failure
resulted in a large gas pipeline catching
fire under pressure.”
Working in ras Lanuf for the VEBA Oil
Company at the time, tony helped save the
facility and keep his crews safe. “Being in
the desert dealing with a large fire with no
additional assistance or support was quite
scary,” he says.
in russia, at Shell’s Onshore Processing
facility (OPf) Sakhalin 2 project, tony was
QaTar
the safety advisor during the construction
and commissioning of the OPf at Lunskoy.
“things are totally different now in Qatar.
i went from working in minus 30 degrees in
russia to working in the plus 40s in the desert.”
Despite the risks, tony enjoys the excitement
of his job. “My favourite part is without doubt
meeting people while travelling between the
uK and Doha offices, chatting to them and
trying to help them if they need assistance.”
At Pearl, safety records are enviable.
the unit’s hard work earned Pearl 77 million
hours without an injury leading to time off
work in 2010 – a record for Shell.
So what’s tony’s secret? “i am easy to
talk to and people can trust me if they have
a problem,” he says. “i would not ask any
of the crew to do anything that i would not
be prepared to do myself, and i would never
put the guys at risk.”
my fAVOurITE PArT IS
WITHOuT DOuBT mEETIng
PEOPLE WHILE TrAVELLIng
BETWEEn THE uK AnD DOHA
OffICES, CHATTIng TO THEm
AnD TryIng TO HELP THEm
If THEy nEED ASSISTAnCE.
TOny O’HArA,
STATIOn OffICEr, PEArL gTL
Shell World uK magazine | auTumn 2013