1. Western Regional Air Partnership Voluntary Green House Gas Emissions Registry Workshop 18 July 2006 Denver, Co Randy Armstrong – Shell Oil Company

2. A Bridge to the Future of Energy “Meeting the “Energy Challenge” is Shell’s largest contribution to Sustainable Development” Jeroen Van Der Veer CEO – Royal Dutch Shell

3. Solution Boundaries Energy supply must meet demand (available & secure) Real costs of energy must constantly decrease Solutions to the “Energy Challenge” must be acceptable to society

4. Present Energy Supply Hydrocarbon Based Underpins the Economy and Lifestyle of the Developed World

5. Future Energy Supply Increased Demand Conventional Energy More Difficult to Find Hydrocarbon Energy Sources Are More Carbon Intensive New Technologies Supply the Bulk of the New Demand

6. How long will it take us to get to the future?

7. CLEAN AIR ACT (CAA) CLIMATE CHANGE ACCEPT (Emotional) QUESTION ACCEPT (Understand ) ACCEPT (Unconscious) No Actions Research Ineffective Action Develop Effective Action Deploy Effective Control Maintain 1947 19651990? 1988 ? PHASE U.S. Environmental History PHASES OF DEVELOPMENT FOR ENVIRONMENTAL REGULATIONS

10. Which policies will best support the activities required to meet the “Energy Challenge” R&D support Voluntary reduction efforts Demonstration projects Tax policy Mandatory controls Cap and Trade Cogen Education Adaptation support - - -

11. Role of Emission Inventories Scorecard Focuses controls Means of trading

12. Shell Position on GHG Registries Although we prefer national programs, we recognize the desire of some states to start now Believe reporting is the right place to start Registries must be consistent with international protocols (WRI/WBCSD) API Compendium should used to calculate emissions for the Oil and Gas industry California Climate Action Registry (CCAR) meets all of Shell’s desires

13. 1605(b) Comments No comment on project specific reductions and early credit Reporting – Does recognize use of API Compendium – Some inconsistencies with international protocols Entity boundaries Deminimus quantity (3% vs. 5%) Data quality requirement

14. Shell Activities Exploration LNG Heavy hydrocarbon production (tar sands/shale oil) Efficiency improvements Gas to liquids Wind Solar Hydrogen Clean coal Sequestration