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Transcription
sHeLL IN ALAsKA
ALUMNInews Published for SHELL ALUMNI IN THE AMERICAS | www.SHELL.US/ALUMNI december 2012 LEVERAGING EXPERTISE REDUCING FRESHWATER USE QUEST A GO! Employees celebrate launch of Shell Technology Center Houston. Reclaimed water flows at Dawson Creek. CCS project in Athabasca moves forward. SHELL IN ALASKA PAge 4 SHELL NEWS A WORD FROM OUR EDITORS Contents 2 When AlumniNews arrives in your mailbox or inbox, what do you flip to first? Do we keep you informed on Shell business activities? Are you interested in our alumni profiles? Are there sections you can’t do without and others you’d rather see gone? We want to hear from you! Help make AlumniNews your go-to publication for everything Shell by filling out our AlumniNews survey at www.shell.us/ alumni. It only takes a few minutes and will help us in customizing the magazine to your wants and needs. If you don’t have a computer handy, flip to page 5 and mail your completed survey to: Shell Oil Company Communications - Amanda Modglin Accardo, P.O. Box 2463, Houston, Texas 77252-2463. ALUMNINEWS AlumniNews is published for Shell Americas. Editors Amanda Modglin Accardo and Hanneke Foppes, Shell Communications Writer/copy editor Susan Diemont-Conwell, Torma Communications Design Production Centre of Excellence, The Hague Shell Human Resources Pam Pfeiffer and Alicia Gomez This publication is printed on 100% recycled paper. GO GREEN! Sign up to receive the newsletter electronically by visiting www.shell.us/alumni. While you’re there, read the latest news and information about Shell. Thank you to those who have already chosen to go green! Please note that in the coming months, we will be updating our electronic database to better serve you. Stay tuned for more details! HIGHLIGHTS 03 QUEST project 04 Arctic readiness 05 AlumniNews survey 11 Reclaimed water facility 12 Shell Technology Center Houston 13 ‘A fantastic adventure’ Visit www.shell.us/alumni for everything alumni. 14 New Texas asset Need forms? Want back issues of AlumniNews magazine? Visit our Shell alumni website for helpful links and phone numbers and the latest news on Shell. 15 ‘Have horse, will travel’ After you’ve filled out your survey, we hope you’ll enjoy reading this issue of AlumniNews. We’ve included stories on the Shell Technology Center Houston, a new liquids-rich shale acquisition in the Permian Basin and information on our first carbon capture and storage project in the Canadian oil sands. As always, send comments and suggested alumni feature stories by mail or by emailing us at [email protected]. Amanda Modglin Accardo and Hanneke Foppes Editors AlumniNews magazine YOU ASKED. WE DELIVERED! We continue to expand the website. Drop us a line at [email protected] to give us feedback and tell us what you’d like to see on the site. Shell to construct world’s first oil sands carbon capture and storage project. Shell lays a strong foundation in Alaska. Tell us what you think and help us customize the magazine. Dawson Creek water treatment plant reduces freshwater use. Facility leverages combined skills of upstream, downstream Projects & Technology. Charlie Williams looks back on 41 years with Shell. Shell acquires liquids-rich shale in the Permian Basin. Shell’s Rod Sinclair rides in Calgary Stampede parade. ALUMNINEWS SURVEY! See page 5. SHELL NEWS 3 QUEST RECEIVES GREEN LIGHT Shell to construct world’s first oil sands carbon capture and storage project Shell has green-lighted Quest, the first carbon capture and storage (CCS) project for an oil sands operation in Canada. As majority owner, Shell will design, build and operate the Quest project on behalf of the Athabasca Oil Sands Project (AOSP) joint venture owners (Shell, Chevron and Marathon Oil), as well as with support from the governments of Canada and Alberta. The announcement comes on the heels of AOSP’s milestone achievement of 500 million barrels since production began in 2003. The project will capture more than 1 million tons per year of carbon dioxide (CO2) from the Scotford Upgrader located near Edmonton, Alberta, and transport it via a 50-mile (80-kilometer) underground pipeline to a storage site north of the Scotford site. There, the CO2 will be injected more than one mile (two kilometers) underground into a porous rock formation called the Basal Cambrian Sands (BCS), which is located beneath layers of impermeable rock. Sophisticated monitoring technologies will ensure the CO2 is permanently stored. According to Chief Executive Officer Peter Voser, CCS is critical to meeting the huge projected increase in global energy demand while reducing CO2 emissions. “If you want to achieve climate change goals, CCS has to be part of the solution. We are helping to advance CCS technology on a number of fronts around the world, but Quest will be our flagship project. CO2 produced in bitumen processing, Quest will reduce direct emissions from the Scotford Upgrader by up to 35 percent—equivalent to taking 175,000 North American cars off the road each year. “Quest is another example of how we are using technology and innovation to improve the environmental performance of our oil sands operations,” says Shell Executive Vice President of Heavy Oil John Abbott. “The opportunity Quest provides to reduce emissions from our upgrading activities is an important achievement in itself, but the project’s technical and strategic value reaches beyond the emissions it will capture.” Supporting a key industry Alberta’s oil sands are a secure, reliable source of energy and an economic engine that drives employment, training and business development across Canada and beyond. Both the Canadian federal and Albertan provincial governments have identified CCS as an important technology in their strategies to reduce CO2 emissions. The Alberta government will invest $745 million in Quest from a $2 billion fund to support CCS, while the Canadian government will invest $120 million through its Clean Energy Fund. Quest forms the core of Shell’s CCS research program and will help develop Shell’s CO2 capture technology. The company has received the necessary federal and provincial regulatory approvals for Quest. Construction has begun and will employ an average of about 400 skilled trades workers over roughly 30 months, peaking at about 700. To improve efficiency, up to 50 percent of project work will be done offsite at a construction yard. Shell will use third-party construction facilities in Edmonton, helping the continuing development of key construction capacity in the province. Large pre-assembled modules will then be delivered to the Shell site for installation. In 2011, Quest received the world’s first certificate of fitness for its storage development plan from Det Norske Veritas (DNV), an international risk management firm. DNV assembled a panel of seven CCS experts from academia and research institutions to perform the review over a two-week period. “Quest is important because it is a fully integrated project that will demonstrate existing capture, transportation, injection and storage technologies working together for the safe and permanent storage of CO2. The knowledge it provides will help enable much wider and more cost-effective application of CCS throughout the energy industry and other sectors in years to come,” Abbott concludes. « “We will need all sources of energy to meet world demand in the coming decades,” Voser continues. “Lower CO2 energy sources will grow, but even by 2050, at least 65 percent of our energy will still come from fossil fuels. CCS will be important to manage climate impacts.” Quest in action The Athabasca Oil Sands Project produces bitumen, which is piped to Shell’s Scotford Upgrader near Edmonton, Alberta. By capturing the From left to right: Natural Resources Minister Joe Oliver; Minister of Energy Ken Hughes; Shell Canada Country Chair Lorraine Mitchelmore; Shell Executive Vice President Heavy Oil John Abbott; President Marathon Oil Canada Ken Woodworth; President Chevron Canada Jeff Lehrmann. 4 SHELL NEWS Laying a strong foundation in Alaska Alaska’s Chukchi and Beaufort Seas are the most promising undeveloped hydrocarbon basins in the United States. The U.S. Federal Government estimates that Alaska’s offshore holds 27 billion barrels of oil and 132 trillion cubic feet of natural gas. The Alaska exploration program is critical to America’s energy needs, to the economy and to creating jobs in Alaska, which is why Shell is engaged in a multi-year drilling program to explore for new oil and gas resources. Demonstrating Arctic readiness Several years of technical preparations, stakeholder engagement, permitting, training, ship construction and logistics-planning have led to the progress that Shell saw throughout the 2012 open water season. The company has developed and deployed operational capabilities for an offshore program that will extend over years to come. These include two rigs and over 20 marine vessels in theater to provide logistics support and oil spill response if needed. Shell is strengthening its scientific knowledge of the geology, oceanography, biodiversity and meteorology of the area. The company continues to build strong relationships with regulators and stakeholders, and multiple layers of protection have been put in place against the remote possibility of a well control incident. Making history, with more to come On September 9, crews aboard the Noble Discoverer began drilling. It was the first time a drill bit touched the sea floor in the U.S. Chukchi Sea in more than two decades. Meanwhile, as the seasonal whale hunt in the Beaufort Sea concluded, Shell once again made a mark in history. On October 3, exploratory drilling in the Beaufort Sea commenced. This occasion marked the first time two rigs have been drilling simultaneously offshore Alaska in over two decades. “We look forward to operating safely and responsibly, putting Americans to work and adding to Shell’s long, successful history of drilling offshore Alaska,” says Pete Slaiby, vice president, Shell in Alaska. Refocusing the program On September 17, Shell announced that it successfully completed a series of tests of the first-ever Arctic Containment System. However, during a final test, the containment dome aboard the Arctic Challenger barge was damaged. The time required to repair the dome, along with steps Shell has taken to protect local whaling operations and to ensure the safety of operations from ice floe movement, led the company to revise its plans for the 2012-2013 exploration program. In order to lay a strong foundation for operations in 2013, Shell decided to forgo drilling into hydrocarbon zones this year and instead begin as many wells, known as “top holes,” as time remaining in the season allowed. For more information on Shell in Alaska, visit www.shell.us/alaska, or follow us on Facebook or Twitter. « UPDATE: PORT ARTHUR REFINERY Days after the commissioning ceremony of Motiva’s Port Arthur Refinery expansion (highlighted in the September issue of AlumniNews), the crude distillation unit—which is part of the recently completed 325,000 barrels-per-day expansion project— was safely shut down without any injuries after it experienced operational issues. While inspection activities and repairs continue on the crude unit, the original Port Arthur Refinery continues to operate normally at 275,000 barrels-per-day distillation capacity. Preliminary inspection found that part of the unit had been accidentally contaminated with high levels of caustic (sodium hydroxide), which resulted in cracks in stainless steel piping and other parts of the crude unit. All seven of the other expansion units built during the expansion project are fully operational, though some are running at reduced capacity. Motiva is targeting to restart the crude unit in early 2013. The safety of employees and protection of the environment will continue to remain the top priority while Motiva addresses the ongoing work. « Penske signs Logano to drive Shell-Pennzoil car With an impressive track record of wins from an early age, Joey Logano is one of NASCAR’s fastest rising stars. Now Logano has joined the Penske Racing team and will drive the the team’s No. 22 Shell-Pennzoil Ford in the 2013 NASCAR Sprint Cup Series. The series starts with the Daytona Shoot-out, February 16 in Florida. Logano, a two-time Cup Series winner who is currently competing in his fourth full season at age 22, has a multi-year agreement with Penske Racing. In addition to his pair of victories, four poles and 16 top-five finishes in his young Cup Series career, Logano has also produced 15 wins and 19 poles in five seasons competing in the NASCAR Nationwide Series. « YOUR FEEDBACK! 5 ALUMNINEWS SURVEY We would love your feedback to make AlumniNews even better. In the survey below, please check the boxes that apply or fill in the blanks as prompted. To submit your survey via mail, please cut out the survey and mail it to Amanda Modglin Accardo. To answer the survey online, please visit www.shell.us/alumni. Do you look forward to receiving AlumniNews magazine? 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Very much A little Not so much Rate the following AlumniNews sections in terms of how much they interest you on a scale of 1 to 5 (1 = not at all, 2 = little, 3 = indifferent, 4 = somewhat, 5 = very much): News about the company and Shell projects: ____ Alumni features: ____ Health Matters: (U.S. only) ____ Alumni Club Calendar: (U.S. only) ____ English-Canada regional section: (Canada only) ____ French-Canada regional section: (Canada only) ____ What would you like to see more of? __________________________________________________________________________________________________ What would you like to see less of? __________________________________________________________________________________________________ Do you share information you read in AlumniNews with others? Often Sometimes Never Does it help you to discuss issues concerning Shell and the oil/gas industry with friends and family? 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Yes No Comments/Suggestions: __________________________________________________________________________________________________ __________________________________________________________________________________________________ May we publish your comments? No Yes (with my name) ______________________________________________________________________________ Yes (without my name) Note: Your contact information is for internal purposes only and will not be made public in any way. Mail your completed survey to: Shell Oil Company Communications - Amanda Modglin Accardo P.O. Box 2463 Houston, Texas 77252-2463 REGIONAL FOCUS united States 7 A WORD FROM SHELL RETIREMENT FUNDS Minimum Required Distributions: Week of December 17 Fidelity will automatically distribute Minimum Required Distributions (MRDs) the week of December 17 from Shell Provident Fund (SPF) accounts that are subject to the MRD rules and have not yet taken the required distribution. To find out more on MRDs, see page 23 of your Summary Plan Description in the green Wealth booklet. The MRD rules require distributions starting with the year that a participant reaches 70 ½ years of age or, if later, the year in which they retire. The MRD payment for the year participants turn 70 ½ can be delayed until April 1 of the following year. For all subsequent years, including the year in which the first MRD was paid by April 1, the MRD must be distributed by December 31 of that year. Under IRS regulations, the SPF must distribute MRDs to eligible participants by the specified date. This is different than an IRA where the regulations put the responsibility on the IRA owner to withdraw the funds. As a result of participant feedback, Fidelity has scheduled SPFs automatic MRDs at the end of their processing cycle. Please refer to page 23 of your Summary Plan Description (green Dimensions “Wealth” booklet) for additional information on how MRDs are calculated and funded. Participants can make arrangements to take their MRD from the SPF by calling the Shell Benefits Service Center (800-307-4355). If you are subject to the MRD rules and have not made prior MRD distribution arrangements by 4 p.m. Eastern time on December 14, your MRD payment will be automatically distributed from your SPF account the week of December 17 (except for the MRD payment following 70 ½, as noted above, which will be paid the following March). « FROM OUR READERS “Your September AlumniNews article reporting the Award for Excellence in Applied Catalysis for Dick Mullineaux and Lynn Slaugh was of interest to me. We are approaching the 50th anniversary of the first shipment of NEODOL from the Houston Plant—July 6, 1965. As the leader of the start-up team, I still have a bottle of the first commercial production of n-butanol and NEODOL, as well as copies of the telexes sent to the head office in New York announcing the fastest plant start-up in Shell Chemical history. “Commercialization of a chemical reaction like hydroformylation requires a highly skilled team of engineers, chemists and scientists. Shell had a real talent for knowing how to assemble and manage these teams of experts that could bring a scientific process to commercial fruition. The first tank car of NEODOL—July 6, 1965. From the commercial start-up team, from left, Frank Caddy, Charles Greene, Chuck Champ and Bob Robertson. “A motivated and dedicated team from Shell Development took the laboratory observations of Dick Mullineaux and Lynn Slaugh and developed these concepts into commercial processes that led to production of NEODOL. The skills and subject-matter expertise of Shell’s process development start-up teams was unmatched by our competitors, and I myself felt privileged to have participated in and led teams for three successful commercial start-ups.” « Charles Greene (’80 Shell Development Company, Westhollow) Charles Greene holds the first bottle of NEODOL. 8 REGIONAL FOCUS united States Club Calendar ALASKA Kenai. Shell Alaska Alumni Club. Wayne Carroll, 907-776-5724, [email protected]. Mail: P.O. Box 7002, Nikiski, AK 99635. ARKANSAS Hot Springs. Arkansas Shell Alumni Club. Lunch: First Tuesday of the month, 11:30 a.m. Jack Williams: 501-915-8245, [email protected]. Mail: 21 Sorpresa Way, Hot Springs Village, AR 71909. CALIFORNIA Bakersfield. Retired Shell Employees of San Joaquin. Don Harrison: 661-763-4568, [email protected]. Mail: 27901 Tank Farm Road, Taft, CA 93268. Martinez. Martinez Refinery Complex Alumni. John Rippee: 925-686-1197, [email protected]. Mail: 6 Stella Court, Pleasant Hill, CA 94523. Placentia. Shell Alumni of Southern California. Joseph M. Tully III: 949 215-5775, [email protected]. Mail: 28212 San Marcos, Mission Viejo, CA 92692. COLORADO Denver. Mile High Shell Retirees. Mike Anderson: 303-799-8505, [email protected]. Mail: 9228 Meredith Ct., Lone Tree, CO 80124. Norco. Shell Norco Retirees’ Club. Bill Collins: 985-764-6888, [email protected]. Mail: 29 Edgewood, Destrehan, LA 70047. MICHIGAN Traverse City. Michigan Shell Alumni Club. Jan Mack: 231-590-2771, [email protected]. Mail: 1404 N. South Long Lake, Traverse City, MI 49685. MISSISSIPPI Florence. North Louisiana and Mississippi Shell Alumni Club. Woody Woodmansee, 601-845-2171, [email protected]. Mail: 178 Houston Acres Road, Florence, MS 39073. MISSOURI Ballwin. St. Louis Shell Retirees Club. Monthly luncheon: Fourth Thursday of every month, Syberg’s Restaurant. Chuck Erwin: 636-394-4434, [email protected]. Mail 574 Spragues Mill Ct., Ballwin, MO 63011. NEW JERSEY Sewaren. Garden State SO Shellites. Bob Fischer: 732-969-1565. Mail: 134 7th St., Port Reading, NJ 07064. Woodbury. Woodbury Poly Pros. Richard Rupertus: 856-455-1705, [email protected]. Mail: 31 Seeley Rd., Bridgeton, NJ 08302. GEORGIA Marietta. Shell Ladies and Old Boys. Ken Hyde: 770-973-8207, [email protected]. Mail: 4509 Woodhaven, N.E., Marietta, GA 30067. NEW YORK Floral Park. Asiatic/Scallop/Shell Retirees Club of New York. Bob Sigmann: 973-887-2742, [email protected]. Mail: 137 Harrison Road, Parsippany, NJ 07054. ILLINOIS Effingham. Shell Pipeline Tri-State Retirees. Mel Sieben: 217-343-2079, [email protected]. NORTH CAROLINA Charlotte. Carolina Alumni and Retirees of Shell. Ed Cassady: 704-814-4520, [email protected]. Mail: 1624 Hugh Forest Road, Charlotte, NC 28270. Wood River. Wood River Refinery Retiree Association. Willie Generally: 618-466-5147, [email protected]. Mail: P.O. Box 444, Godfrey, IL 62035-0444. LOUISIANA Baton Rouge. Shell Geismar Area Retirees Club. Isadore Brown: 225-766-8325, [email protected]. Mail: 9438 Wild Valley Road, Baton Rouge, LA 70810. Houma. Shell Cajun Alumni Club. Russell Poiencot: 985-872-4619. Mail: 244 Grande St., Houma, LA 70363. Lake Charles. Shell Retirees of Lake Charles. Fred Berger: 337-474-7011, [email protected]. Mail: 4218 Mary Ann Lane, Lake Charles, LA 70605. Norco. Shell Chemical Norco Plant Alumni Club. Leroy A. Morales: 504-467-4639 or Sheryl Lupo: [email protected]. Mail: #7 Lasso Lane, St. Rose, LA 70087. OHIO Westlake. Ohio Shell Pensioners Club. Richard Mowry: 419-341-4377, [email protected]. Mail: 200 N. Crest Dr., Port Clinton, OH 43452. OKLAHOMA Tulsa. Mid-Central Shell Alumni Association. John Digges: 918-252-3307, [email protected]. Mail: 9108 East 59th Place, Tulsa, OK 74145. OREGON Portland. Portland Shell Activities Club. Luncheon: Last Wednesday of each month, 11:30 a.m., Broadmoor Golf Course. Dan Harshburger: 541-390-9622. Mail: 453 NW Flagline Dr., Bend, OR 97701. Siskiyou. Siskiyou Shell Alumni Club of Southern Oregon. Derek Eck: 541-552-9134, [email protected]. Mail: 1000 Paradise Lane, Ashland, OR 97520. REGIONAL FOCUS united States 9 HEALTH MATTERS TEXAS Austin. Austin/Hill Country Alumni Club. Vic Figurelli: 512-931-0108, [email protected]. Mail: 116 Ruellia Dr., Georgetown, TX 78633. Brenham. Central Texas Shell Retirees Club. Doug Winters: 979-542-1129. Mail: P.O. Box 1056, Giddings, TX 78942. Living the Well-Aged Life By Tom Gray, Achieve Solutions Your later years could be the best years of your life. Harvard Medical School psychiatrist George Vaillant, MD, has the case studies to prove it. As director of the Harvard Study of Adult Development, Vaillant has spent 35 years following the lives of several hundred people as they’ve progressed into their 70s and 80s. Dallas/Fort Worth. D/FW Shell Alumni Association. Duggan Smith: 817-579-5306, [email protected]. Mail: P.O. Box 5262, Granbury, TX 76049. Hallettesville. South Central Texas Shell Pensioners Club. John Butschek: 361-798-5967. Mail: 700 N. Dowling St., Hallettsville, TX 77964. Houston. Shell Alumni Association of Greater Houston. Colin Kiernan: 281-499-4067, [email protected]. Mail: 3122 North Park Drive, Missouri City, TX 77459. Houston. Shell Northwest Alumni Club. Tom McNamara: 281-225-8143, [email protected]. Mail: 10030 Eden Valley, Spring, TX 77379. Midland. Shell Alumni Group of the Permian Basin. Dave Daupert: 432-688-8772, dnduppy@grandecom. net. Mail: 2406 Auburn Pl., Midland, TX 79705. Pasadena. Shell DPMC Retirees. Monthly meeting: First Thursday of each month, 11 a.m. at the East Harris County Activity Center. Angelo Pulido: 281-479-3058, [email protected]. Mail: 750 Amherst Lane, Houston, TX 77536. WEST VIRGINIA Parkersburg. Shell/Kraton Belpre Plant Retirees. Jerry Watson: 304-422-6988, jcwatson1999@frontier. com. Mail: 451 Watson Rd., Parkersburg, WV 26104. HOLE-IN-ONE Harry Frank (’01 Shell Chemical) scored his third hole-in-one on July 25, using a 5-hybrid on a 145-yard, par-3 hole at Blackhorse North Course in Houston. Ward McCarley (’06 Shell E&P) scored his first hole-in-one April 11 at Roy Kizer Golf Course in Austin. He used a gap wedge on the 127-yard 15th hole. He also made his second hole-in-one September 3 with a 4-iron on the 190-yard 6th hole at Shadowglen Golf Club in Manor, Texas. He has come away with a cheering message: Life after 50 need not be a period of steady decline and shrinking social horizons. Quite the contrary, he says, adults who master life’s stages of emotional maturation find aging a richly fulfilling time. Learning from those already there Vaillant says his research, distilled in his recent book Aging Well, presents a view of aging from the perspective of those who are already there. As such, he says, “It shifts attention away from the middle-aged gurus who are scared about aging and talk about cellulite and diet and exercise, and it pays attention to people who actually know how to play the game.” Mastering a series of life tasks Common themes emerged in Vaillant’s studies. One is that the personality doesn’t stand still. It doesn’t freeze at some point in adulthood, never to change. Nor, says Vaillant, is the life cycle an up-and-down affair, with growth up to middle age and declining powers from then on. Instead, he says the story of successful adulthood and old age is a “sequential mastery of a series of life tasks.” Taking a cue from Danish psychoanalyst Erik Erikson, Vaillant says adult development is (or should be) a “widening radius over time.” In youth, the task is to achieve an identity, a sense of one’s own self and values. The next task is intimacy, or learning to live with another person for the long term in an » 10 REGIONAL FOCUS united States interdependent, committed, contented way. Then comes “career consolidation.” This is the job of assuming “a social identity within the world of work.” It’s at this point, when someone has achieved identity, intimacy and made some mark on the work world, that one faces the tasks associated with aging. The first is “generativity” which requires a person “to unselfishly guide the next generation.” This is the communitybuilding stage, in which people start focusing less on personal achievement and more on mentoring, teaching and leading a younger generation. Mastery of generativity “tripled the chances that the decade of the 70s would be for these men and women a time of joy and not of despair.” Later, as the days increase, people assume the task of wise judge, or what Vaillant calls “keeper of the meaning.” People at this point take responsibility for the wider culture and past traditions, not just for the people around them. Grandparents teaching grandchildren about the past are keepers of the meaning, as are those who write local histories. The final task is Erikson’s “integrity”—coming to terms with one’s life, accepting it as it was; the goal is to die at peace with oneself and, as Erikson suggests, to show the young how not to fear death. Growing old with grace How can we recognize someone who has mastered these tasks? Vaillant says those who “grow old with grace” tend to have these characteristics: They care about others and are open to new ideas. As much as is physically possible, they help others rather than insist that others care for them. They show cheerful tolerance for the indignities of aging, turning life’s lemons into lemonade whenever possible. They maintain hope in life and cherish initiative, believing that “development goes on for all of our lives.” They retain a sense of humor and a capacity for play. They are able to spend time in the past and “take sustenance from past accomplishments,” but they also remain curious and continue to learn from the next generation. They stay in touch with old friends while making new ones. Other research These prescriptions for healthy aging do not work in all cases. They require healthy brain function—they cannot really make the future brighter for victims of Alzheimer’s disease. But most of the elderly stay lucid, and most are able to live independently. And on the whole they’re happy. Maddox notes that only about 20 percent will have contact with a nursing home, and far fewer will undergo extended stays. In other words, aging may have its tasks that must be mastered, but so does life in general. And those with the right attitudes, habits and ties to kin and community can look forward to leading a well-aged life. « Source: Aging Well: Surprising Guideposts to a Happier Life From the Landmark Harvard Study of Adult Development by George E. Vaillant. WEDDING ANNIVERSARIES 50 YEARS Jerry Carpunky (’97 Shell Oil Company) and wife, Carol: Aug. 3. John C. Gardner (’95 Shell E&P at Bakersfield) and wife, Pearl: Sept. 8. Mary Henley (’95 Shell Oil Company) and husband, Vern: Sept. 8. Willie Kleen (’02 West Coast Pipeline) and wife, Jeanie: Aug. 24. Don Longwell (’93 Shell Oil Company) and wife, Joy: July 15. Lois B. Roberts (‘01 Shell Chemical) and husband, Larry: July 21. Jack Shelton (’96 Shell Refinery) and wife, Randi: Sept. 7. Bob Slocum (’92 Mobile Refining & Marketing Plant) and wife, Jeanie: Aug. 25. Francis Wieseman (’04 Shell Oil Company) and wife, Jenny: Sept. 8. 55 YEARS E. L. (Ed) Creamer (’97 Westhollow) and wife, Alice: Jan. 4. 60 YEARS Clarence F. Conrad (’89 Shell Offshore Inc.) and wife, Roberta: Sept. 20. George Green (’80 Shell Chemical) and wife, Elizabeth: Sept. 27. Thomas Field (’96 Norco Refinery) and wife, Zoe. John A. Lopez (’93 Westhollow) and wife, Dorothy: Nov. 9. Jack Hughes (’92 Head Office E&P) and wife, Bettie: Aug 16. Ed Mergens (’89 Shell Oil Company) and wife, Betty: Aug. 31. Robert Miller (’93 Shell Dev. Co. Bellaire Research Center) and wife, Joyce: Aug. 17. Ralph Sandall (’90 Shell Deer Park) and wife, Marcie: Oct. 6. Larry J. Schexnaydre (’93 Norco Manufacturing Complex) & wife, Sharon : Dec. 1. LF (Lynn) Wright (‘06 Shell Chemical) and husband, Richard: Jan. 13. 65 YEARS Fred O. Gerbode (’88 Shell Pipeline) and wife, Shirley Dawn: July 3. 100... and ting! coun Happy birthday to the following centenarians. H.A. Mitchell, 100 R.E. Thomas, 100 P.W. Wield, 102 SHELL NEWS 11 RECLAIMED WATER FLOWING Dawson Creek water treatment plant reduces freshwater use Shell is reducing its environmental impact and scoring big with its neighbors with the opening of the Dawson Creek water treatment plant in British Columbia. The reclaimed water facility, an innovative partnership between Shell and the City of Dawson Creek, will virtually eliminate Shell’s need to draw on fresh water for its Groundbirch shale gas operations. With the capacity to treat 141 cubic feet (4,000 cubic meters) of wastewater a day—equivalent to the amount of water used by more than 12,000 Canadian households*—the facility will not only meet Shell’s water needs, but will supply the City of Dawson Creek with non-potable water, further preserving local freshwater sources. The waste water will be treated to a standard suitable for industrial and municipal uses (such as enough natural gas to meet the needs of approximately 400,000 Canadian homes. The reclaimed water will be stored in ponds and later mixed with recycled production water for drilling operations and well completions. The 30-mile (48-kilometer) pipeline is expected to take approximately 100 trucks off the road each day over the course of full gas field development, mitigating safety risks and resulting in less traffic, noise and dust on the roadways. The facility answers public and stakeholder concerns around water use during shale gas development (hydraulic fracturing). While studies conducted by Harvard and MIT show the water intensity of shale gas ranks among the lowest of all known fuel sources, the project is in line with the company’s commitment to minimize its says Minister of Energy and Mines Rich Coleman. “Across all our operations, we strive to work collaboratively with local communities, governments and industries to identify innovative solutions to complex challenges,” says Lorraine Mitchelmore, Shell Canada president and country chair. “Through this collaborative partnership with the City of Dawson Creek, we are virtually eliminating the amount of fresh water used for our operations, providing the city with an additional source of revenue and reducing three million kilometers a year in truck traffic from local roads.” To learn more about the project, visit www.shell.ca/reclaimedwater. *Canadians use an average of 87 gallons (329 liters) of water each day for household and gardening purposes. « The water-energy-food nexus In addition to meeting virtually all of Groundbirch’s future water needs, the Dawson Creek reclaimed facility will supply the City of Dawson Creek with non-potable water, further preserving local freshwater sources. cleaning roads and watering sports fields) and provide a new source of revenue for the city. “The new plant demonstrates the value to our community of working collaboratively with industry to find innovative solutions to shared challenges. Water is a limited resource and we need to use it carefully and responsibly. This facility allows us to do that,” says Dawson Creek Mayor Mike Bernier. Shell will pipe its share of reclaimed water to its natural gas operations to the west of Dawson Creek, where the company operates the Groundbirch shale gas field, which produces impact on water, air, wildlife and the communities in which it operates. Last year, Shell introduced operating principles for onshore tight sand/shale oil and gas, including operating principles relating to water. “The use of treated waste water is an excellent step forward by Shell and the City of Dawson Creek to improve resource demands and operations, and is an example of a green project that has already resulted in positive change. The Government of British Columbia applauds the work and commitment that has resulted in this fine facility, which is a model we hope other industry players and local governments will strive to replicate,” In its global operations, Shell considers the world’s water, energy and food systems to be tightly linked: water is needed to extract energy and generate power; energy is needed to treat and transport water; and both water and energy are needed to grow food. Shell strives to conserve water in its operations through the development of new technologies and processes, but also by working with communities to find local solutions to water use, as has happened in Dawson Creek. Tangible environmental benefits At Groundbirch, Shell Canada recycles approximately 75 percent of the water produced during its operations. Once Groundbirch operations are fully up and running, the company’s goal is to nearly eliminate the need to draw on city wastewater or freshwater sources. 12 SHELL NEWS SHELL LAUNCHES TECHNOLOGY CENTER HOUSTON Houston facility leverages combined skills of upstream and downstream Projects & Technology The Shell Technology Center Houston (STCH) recently launched internally, making it the first time in the U.S. that upstream and downstream Projects & Technology (P&T) employees have been brought together in one location. The new facility will help the company leverage combined skills and capacity into a unified technology strategy. Kelly Showalter, site manager at STCH, kicked off the launch. “We are no longer Westhollow, Westhollow Technology Center or Bellaire Technology Center. Today, we are celebrating the official launch of Shell Technology Center Houston,” she says. Reflecting on the start Three years ago, Shell put together a strategy to combine upstream and downstream into one location at the then Houston Westhollow campus and to continue to leverage Shell’s technology expertise. “We wanted the facility to be worldclass to enable that technology development,” says Jimmy Hunter, modernization project manager, Shell Real Estate. Hunter went on to note that this project was all done during a time when the financial community was in distress and Shell was making a very significant commitment to the Houston market. “We put together a very complex three-and-a-half-year strategy that involved renovation, new construction and having to maintain the operations throughout the execution. Now that we have finished the project and can reflect back on how the strategy unfolded and see the level of excitement that is starting to develop here, we can say it truly was visionary for Shell to make this commitment during the downturn.” Bringing it all together Realizing the challenges of incorporating diverse disciplines and cultures from Houston’s Bellaire Technology Center, Westhollow and even employees from the Woodcreek campus into one location, STCH centered its launch activities on bringing innovation, people and communities together. The three-day internal launch was designed to identify synergies and interdependencies and to leverage more advanced ways of working. The goal: enabling faster development of more “firsts” and achieving true world-class performance. “It’s been a process that’s long overdue. I’ve seen a lot of labs in the world— what we have here is absolutely world-class. For employees who have to work in that environment, I think it’s a huge step forward,” says Ben Van Den Brule, vice president, Unconventional Technology. STCH helps leverage combined skills and capacity into a unified technology strategy. Leveraging technology and innovation The first day’s events focused on innovation—in particular, finding solutions to each other’s challenges. During a 25-minute speed-meet exercise, facilitated by GameChangers, STCH colleagues introduced themselves, interviewed each other about the challenges they face and discussed solutions to meet key hurdles. On the second and third days of festivities, the site switched gears from work and focused more on bringing employees and their families together. Employees had the opportunity to meet and network with coworkers while perusing booths for local social groups, networks and activities. And over the weekend, employees and their families participated in a safety carnival. As the site moves forward, the focus remains on bringing employees together as one family to thrive in the community and advance Shell’s unified technology strategy. “This is about people, technology, development and the community that exists here—the facility is an enabler. I’m extremely excited about the future here, and I hope that the people who work here are excited about the possibilities moving forward,” Hunter concludes. « The speed-meet exercise gave employees the opportunity to share some of the challenges they face and discuss solutions to meet key hurdles. FEATURE 13 ‘A FANTAStIC ADVENTURE’ Charlie Williams looks back on 41 years with Shell Charlie Williams (‘12 Well Engineering and Production) has seen Shell achieve a lot of “firsts” in the industry. “We were the first in deep water, we were the first in achieving high-pressure, high-temperature wells, and we were the first in making steam floods in California successful. Time after time, Shell has faced difficult challenges, and through technological innovation, we’ve turned it into a business success.” During his 41 years with Shell, Williams not only witnessed these firsts—he played an integral role in making many of them possible. The alumnus, who retired in May from his position as chief scientist for Well Engineering and Production, specialized in wells that had special challenges, including sour gas hightemperature, high-pressure wells; deepwater wells; and wells used in carbon dioxide sequestration. “The knowledge we gained from solving one problem would be applied to the next challenge. Shell was a continuously exciting place to work.” Technically exciting projects From his first days at Shell, Williams felt valued as a mechanical engineer, though his first office in 1971 left something to be desired. “I worked in the Gentilly office on West Esplanade in New Orleans. It was a small three-story building, and to create additional office space, they had walled in the parking garage on the first floor. My first office had concrete walls, no windows and a metal door,” he muses. Despite the sparse accommodations, Williams knew he made the right choice in joining Shell. “My first day on the job, they were getting ready to do a well completion in the Gibson field between Morgan City and Houma, Louisiana. I went straight out to the barge rig and started running tubing on the high-pressure well. This was one of the few high-pressure wells being done at the time, and I was given this responsibility right off the bat. It was a unique opportunity and it influenced a good portion of my career.” “We are only as good as our safety and environmental management systems.” Charlie Williams is applying the experience he gained during his 41 years at Shell to his new position: executive director of the Center for Offshore Safety, an industry-sponsored organization focused exclusively on improving offshore safety and operational integrity. And his time out in the swamp was certainly memorable. “Late at night, I would shine a flashlight and see 10,000 eyes looking back at me. It wasn’t just technically exciting; it was a fantastic adventure all the way around.” Williams continued to work on developing the tools, techniques and standards for high-pressure, hightemperature well completions, including metallurgical work to protect wells from corrosive gases and high pressures. He appreciated the opportunity to not only design well solutions, but also see many of his designs implemented in the field. “When I worked in the Corsair Trend offshore Texas, I served as a section leader, grade 11 manager, production superintendent and engineering manager for the development. It was an incredible opportunity to experience the project at different management levels.” Williams had a chance to be a part of the first offshore high-pressure well test. “Everybody was concerned because we had never tested a high-pressure well offshore, but there was a deep commitment to safety. I put a tremendous amount of heart and soul into making sure that test was done right.” When it came to developing the tools and technologies needed to bring Shell into deep water, Williams relished the technical challenge. “I worked on gravel packs when I first came to work for Shell back in 1971, but this time, the challenge was making this technology work over long completion intervals at high rates and deep depths. It was not only a technical challenge, but it was a challenge convincing people that it was possible. We had to change people’s mindsets.” Though there was a great deal of enthusiasm and excitement around deep water, the pressure was on. “If we couldn’t solve these technical challenges, deep water wouldn’t work. There was a lot of intensity; we understood what was at stake. It was certainly one of the most important projects I worked on at Shell.” When Hurricane Katrina ravaged the Gulf Coast, Marvin Odum himself called Williams, asking if he would take over as vice president of recovery in the Gulf of Mexico. “Mars—our biggestproducing asset in the Gulf of Mexico– was completely down, its process facilities crushed. We spent days, nights and weekends reconstructing that platform, working with 200 contractors, many of whom required interpreters,” he recalls. “We delivered that project sooner than anyone expected, under » 14 FEATURE/SHELL NEWS budget and without a single incident. That was a pretty amazing accomplishment, and I was very proud to be a part of it.” Giving back to the industry In 2010, Williams took on what he thought would be his last position at Shell. “I was serving as well delivery manager in Anchorage at the time of the Macondo incident in the Gulf of Mexico. We were on the verge of drilling, and Marvin Odum and others knew the potential impact this incident could have on executing the Alaska project.” Williams headed to Washington to meet with members of Congress and the Minerals Management Service. “I was there to get the message out about how Shell plans its drilling programs and what we do differently.” Williams testified before the Presidential Oil Spills Commission and the National Academy of Commissions and, even today, meets regularly with members of Congress about offshore deepwater operations. He conducted technical “Making the difficult decision to retire was easier knowing that this next great challenge will benefit Shell.” work in modifying and improving Shell’s own internal safety standards and served on the operating committee of the Marine Well Containment System project with subject-matter experts from ExxonMobil, ConocoPhillips and Chevron. “This amount of industry collaboration and the timeline for project delivery was unprecedented.” The experience inspired his next move: executive director of the Center for Offshore Safety, an industry-sponsored organization focused exclusively on improving offshore safety and operational integrity. “We are only as good as our safety and environmental management systems. Making these systems more effective, sharing best practices and working together as an industry is the key barrier to preventing major incidents. It’s something I’m very passionate about. “Working at Shell couldn’t have been a more exciting and interesting experience. Making the difficult decision to retire was easier knowing that this next great challenge will benefit Shell. I see it as a great opportunity to give back and make a meaningful contribution to the entire industry.” « NEW LIQUIDS-RICH SHALE ASSET Shell is increasing its North American onshore presence with the acquisition of the Delaware Basin asset in the Permian Basin of West Texas. The company recently entered into a definitive agreement with Chesapeake Energy to purchase the asset. This substantial acquisition will add an eighth producing asset to Shell’s portfolio of seven onshore assets in North America. The transaction consists of 618,000 net acres with 26,000 barrels of oil equivalent per day. Chesapeake Energy will handle operatorship responsibilities for Shell during an interim period under a Temporary Services Agreement. The acquisition is a further step by Shell’s Upstream Americas business to build a leading portfolio of shale assets rich in oil and natural gas liquids. Exploring new resources Shell has built a large and competitive portfolio of onshore natural gas which the company continues to optimize to ensure robust investment opportunities in challenging price environments. Advances in horizontal drilling, hydraulic fracturing and geological sweet-spot mapping in unconventional gas over the past few years have paved the way for yet another untapped, unconventional resource— light tight oil, also called liquids-rich shale (LRS). The development of LRS is the next opportunity within Shell’s tight/shale gas portfolio. including those around land use, water management and hydraulic fracturing. Shell’s safe and responsible approach for all onshore activities is outlined in the global Onshore Tight Sand/Shale Oil & Gas Operating Principles at www.shell.us/naturalgas. « “At Shell, we believe we can explore, develop and produce these resources safely and responsibly,” said Peter Voser, CEO, during an investor briefing earlier this year. “We’ve been working hard to build up Shell’s portfolio in tight gas, and we’ve moved rapidly into liquids-rich shales. We have 50,000 square kilometers [12 million acres worldwide], including 12,000 square kilometers [3 million acres] of liquids-rich shales.” Understanding liquids-rich shale and shale gas Like tight and shale gas, liquids-rich shale is produced by extracting oil from deep in the earth’s surface, generally via horizontal drilling and hydraulic fracturing. LRS plays occur in many of the major onshore basins in the Americas, from Argentina to the Western Canadian Sedimentary Basin. LRS exploration and production has similar non-technical risks and challenges to those associated with onshore gas, While the majority of the world’s oil currently comes from rock which has adequate permeability to enable the natural flow of liquids into the well, oil reserves in ultra-low permeability or “tight” rocks such as the Bakken shales in North Dakota and the Mississippi limestone in Kansas have also proven to become producible. For more information about shale gas, visit www.shell.us/naturalgas. « FEATURE ‘HAVE HORSE, WILL TRAVEL’ Shell’s Rod Sinclair rides in Calgary Stampede parade Over the years, he has won championships, including the North American Rodeo Commission bareback championship in 1979, co-winner of the Guy Weakick Award and most valuable cowboy at the Calgary Stampede, as well as the Chinook Rodeo Association (CRA) cowboy of the year and three-time CRA bareback bronc-riding champion. Representing Shell in his role as community affairs coordinator at Waterton, Sinclair (right) often helps local ranchers with their cattle. When Calgary Stampede champion Rod Sinclair, community affairs coordinator at Waterton, rode his horse down the streets of Calgary to celebrate the Stampede’s 100-year anniversary, he felt what it was like to have 400,000 people cheering and clapping for him and 24 past champions. He also got to hear a common refrain, “Now these are the real cowboys.” After a lifetime of riding, ranching and competing in high-octane rodeo sports like bareback riding, steer wrestling and team roping, Sinclair would likely agree with them. But when it comes down to his day-to-day life, he’s just a neighbor helping neighbors. He started at Waterton in 1976, and for the last six years has served as the focal point for Shell’s presence in the region, talking with neighbors and engaging with the community. For long-time resident Sinclair, engaging with the community means helping out in times of need. “Have horse, will travel,” he says. With his Shell hat on, Sinclair helps local neighbors brand cattle and at various times during the year, can be found rounding up and moving cattle to their fall or summer pasture. He says his role as community affairs coordinator was a natural fit. “I’ve lived here over the last 40 years, raised a family and volunteered in the community. My role at Shell is about building relationships, and I know a lot of these ranchers personally. They know they can count on me, and they see Shell as a good neighbor.” A long, successful rodeo career The son of a professional rodeo competitor, Sinclair was born on a ranch in southern Saskatchewan and has been around horses his entire life. He began riding in rodeos when he was 12 and continued bareback riding even while working at Shell. Sinclair riding bareback in a rodeo competition. When a shoulder injury sidelined his bareback riding career, Sinclair continued team roping until about five years ago when he retired to the sidelines as a photographer. Today, Sinclair’s photos of rodeos and wildlife can be found in publications such as Mule Deer Foundation, Rodeo Connections and National Geographic. Sinclair’s rodeo and wildlife photography has been featured in a variety of publications, including National Geographic. While his days of riding are behind him, his two granddaughters, ages 10 and 13, are riding at an amateur level in barrel racing. “My 10-yearold granddaughter, Kelby Terry, just won year-end championships for the Foothills Cowboy Association southern Alberta region. They are both well on their way to a long career, and I couldn’t be more proud.” « 15 12-31-2011 FOR PLAN YEAR ENDING SUMMARY ANNUAL REPORTS TO: ALL PARTICIPANTS The Employee Retirement Income Security Act of 1974 (ERISA) requires employers to file annual reports on certain benefit plans. The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor. This pamphlet summarizes the full annual reports submitted by Shell Oil Company to the EBSA for the Plan Year January 1 through December 31, 2011. These summaries are provided for your information. They require no action on your part and have no effect on your benefits. Questions about your benefit plans or these summaries should be directed to Shell Oil Company, P. O. Box 2463, Houston, TX 77252. You have the legally protected right to examine each annual report at the main office of the plan (Shell Oil Company, 910 Louisiana, Houston, Texas 77002), and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. « SHELL PROVIDENT FUND Plan Number 002. Employer Identification Number 13-1299890 Basic Financial Statement Benefits under the plan are provided through a trust fund. Plan expenses were $704,115,204. These expenses included $3,546,905 in administrative expenses, $699,673,616 in benefits paid to participants and beneficiaries, and $894,683 in other expenses. A total of 44,327 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $8,492,128,567 as of December 31, 2011, compared to $8,707,395,076 as of January 1, 2011. During the plan year the plan experienced a decrease in its net assets of $215,266,509. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $488,848,695 including employer contributions of $169,916,179, employee contributions of $205,530,245, and earnings from investments of $96,523,049.* Your Rights to Additional Information You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 1. an accountant’s report; 2. financial information; 3. assets held for investment; and 4. information regarding any common or collective trusts, pooled separate accounts, master trusts or 103-12 investment entities in which the plan participates. To obtain a copy of the full annual report, or any part thereof, write Trustees for Shell Pension Trust, P.O. Box 1438, Houston, Texas 77251-1438 or call (713) 241-7623. The charge to cover copying costs will be $0.10 per page. You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the Plan and accompanying notes, or a statement of income and expenses of the Plan and accompanying notes, or both. If you request a copy of the full annual report from the Plan Administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. *Additional Information: Rollovers in the amount of $16,879,222 also impacted the total plan income of $488,848,695. « EAST RESOURCES RETIREMENT SAVINGS PLAN Plan Number 001. Employer Identification Number 76-0457926. Basic Financial Statement Benefits under the plan are provided through a trust fund. Plan expenses were $1,389,599. These expenses included $7,637 in administrative expenses, $1,381,962 in benefits paid to participants and beneficiaries, and $0 in other expenses. A total of 159 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $3,687,306 as of December 31, 2011, compared to $5,172,839 as of January 1, 2011. During the plan year the plan experienced a decrease in its net assets of $1,485,533. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of ($95,934) including employer contributions of $5,619, employee contributions of $0, and earnings from investments of ($101,553). Your Rights to Additional Information You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 1. an accountant’s report; 2. financial information; 3. assets held for investment; and 4. information regarding any common or collective trusts, pooled separate accounts, master trusts or 103-12 investment entities in which the plan participates. To obtain a copy of the full annual report, or any part thereof, write the Plan Administrator, P.O. Box 1438, Houston, Texas 77251-1438 or call (713) 241-7623. The charge to cover copying costs will be $0.10 per page. You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the Plan and accompanying notes, or a statement of income and expenses of the Plan and accompanying notes, or both. If you request a copy of the full annual report from the Plan Administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. « 12-31-2011 FOR PLAN YEAR ENDING SHELL OIL COMPANY COMPREHENSIVE WELFARE BENEFITS PLAN Plan Number 501. Employer Identification Number 13-1299890. Shell Oil Company has committed itself to pay certain medical, dental, prescription drug, behavioral health and dependent care claims incurred under the terms of the Plan. Insurance Information The plan has contracts with Ameritas Life Insurance Company, Blue Cross Blue Shield of Alabama, Blue Cross Blue Shield of Texas, Connecticut General Life Insurance Company and Affiliates, Coventry Health Care of Louisiana, Delta Dental of California, Group Health Cooperative, Health Net, HMSA, Humana Benefit Plan of Louisiana, Hyatt Legal Plans, Inc., John Hancock Life Insurance Company, Kaiser Foundation Health Plans Inc., Kaiser Foundation Health Plan of Colorado Inc, Kaiser Foundation Health Plan of the Northwest, Metropolitan Life Insurance Company, Regence BlueShield, United Healthcare of California, United Health Care of the Midwest, United Healthcare of Oklahoma, Value Options (EAP) and Vision Service Plan (VSP) to pay accidental death & dismemberment, business travel & accident, dental, legal, life insurance, long-term disability, long-term care, medical, prescription drug, temporary disability and vision claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2011 were $149,351,519. Because the plan has some contracts which are so called “experience-rated” contracts, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the plan year ending December 31, 2011, the premiums paid under such “experiencerated” contracts were $14,823,286 and the total of all benefit claims paid under these experience-rated contracts during the plan year was $18,873,350. Basic Financial Statement The value of plan assets, after subtracting liabilities of the plan, was $6,869,401 as of December 31, 2011, compared to $30,245,029 as of January 1, 2011. During the plan year the plan experienced a decrease in its net assets of $23,375,628. This decrease includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $537,316,833 including employer contributions of $429,388,912, employee contributions of $107,855,843, and earnings from investments of $34,954.* Plan expenses were $560,692,461. These expenses included $23,243,828 in administrative expenses and $537,448,633 in benefits paid to participants and beneficiaries. Your Rights to Additional Information You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report: 1. an accountant’s report; 2. financial information and information on payments to service providers; 3. assets held for investment; 4. transactions in excess of 5% of Plan assets; and 5.insurance information, including sales commissions paid by insurance carriers. To obtain a copy of the full annual report, or any part thereof, write Shell Oil Company, P.O. Box 2463, Houston, TX 77252 or call (713) 241-6515. The charge to cover copying costs will be $0.10 per page. You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the Plan and accompanying notes, or a statement of income and expenses of the Plan and accompanying notes, or both. If you request a copy of the full annual report from the Plan Administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. *Additional Information: Miscellaneous income in the amount of $37,124 also impacted total income of $537,316,833. « SHELL 1996 COLI CONSENT INCENTIVE BENEFIT PLAN Plan Number 596. Employer Identification Number 13-1299890. Shell Oil Company has committed itself to pay all life insurance claims incurred under the terms of the Plan. Your Rights to Additional Information You have the right to receive a copy of the full annual report, or any part thereof, on request. To obtain a copy of the full annual report, or any part thereof, write Shell Oil Company, P.O. Box 2463, Houston, TX 77252 or call (713) 241-6515. The charge to cover copying costs will be $0.10 per page. You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the Plan and accompanying notes, or a statement of income and expenses of the Plan and accompanying notes, or both. If you request a copy of the full annual report from the Plan Administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. « PRSRT STD U.S. POSTAGE PAID Houston, TX Permit No. 1991 Shell Oil Company Communications - Amanda Modglin Accardo P.O. Box 2463 Houston, Texas 77252-2463 LET’S LIGHT UP OUR CITIES WITH A CLEANER SOURCE OF ELECTRICITY. We all need electricity. Whether it’s to light up the local game or warm the mid-game snack – it’s an essential part of powering our lives. Shell is helping to deliver natural gas to more countries than any other energy company. When used to generate electricity, it emits around half the CO2 of coal. It’s one of the most abundant sources of energy available today and, with our continued innovation, it could provide us with cleaner energy for around the next 250 years. And it’s one of a number of different sources of energy we’re investing in to power and sustain our lives today and into the future. Let’s broaden the world’s energy mix. Search: Shell Let’s Go To explore interactive stories on innovation in energy on your iPad, scan the code or search ‘INSIDE ENERGY’ in the App Store. LET’S GO. iPad and App Store are trademarks of Apple Inc., registered in the U.S and other countries.