Michelin Challenge Bibendum media briefing - Mark Williams Downstream Director Royal Dutch Shell plc
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Michelin
Challenge Bibendum
media briefing
Mark Williams
Downstream Director
Royal Dutch Shell plc
Berlin, May 19, 2011Mark Williams: Remarks to the Michelin Challenge Bibendum media briefing
Mark Williams was appointed Director Downstream with
effect from 1 January 2009. Prior to this, Mark was
Executive Vice President (EVP) Supply & Distribution (S&D),
where he had responsibility for crude oil and refined
products supply for Shell’s global refining and marketing
businesses.
Mark’s other previous positions have been EVP, Global
Businesses, Vice President of Strategy, Portfolio and
Environment for Oil Products. Mark was born in 1951 in
Houston, Texas. His qualifications include a Masters Degree
in Theoretical Physics from Oxford University (1975) and
a Doctorate & Masters Degree in Physics from Stanford
University (1979).
He joined Shell in 1979 as a research physicist for Shell
Oil Exploration and Production. Highlights of his career
include being Engineering Manager for the U.S. Gulf of
Mexico during the early days of Deep Water, working as
Operations Manager for Shell Oil Western EP Operations,
being Head of Staff Planning for Shell Oil Exploration and
Production, Head of Downstream Strategy for Shell Oil
during the merger with Texaco, and Head of Transportation
(pipelines and distribution) for Equilon Enterprises LLC, the
Shell and Texaco joint venture in the United States. Mark
and his wife, Candace, have two children. His interests
include amateur astronomy and astro-imaging, yacht racing,
mountaineering, cycling and weight training.
1Mark Williams: Remarks to the Michelin Challenge Bibendum media briefing
Introduction Mobility
Good afternoon... and thanks for joining us. But let’s be clear: mobility is not just about
I’d like to keep this informal today. hardware. It’s not even just about transportation.
I’ll offer a few thoughts on mobility generally – Mobility is about access: the access of human
what it means, why it’s critical to the way we live, beings to education, to work, to medical care, to
and why it depends on technologies in energy. resources, to family networks – even to social and
Then I’ll suggest a few ideas about how – and how political freedom. And it’s about the flow of goods
fast – mobility might evolve. and products to and from factories, markets and
Finally I’ll share some views on what needs customers.
to be done, starting today – on everything from A study first published in 1976 suggests that
smarter products, to smarter energy use, to smarter virtually everyone in the world in every socio-
infrastructure – to keep the world safe for mobility economic strata spends on average roughly the
well into this century. same amount of time each day moving from one
I’ll keep all that short, because I’m pretty sure you place to another – whether village women in a
may be interested in asking questions – especially developing country walking by foot to the nearest
since I’m joined by our new Chief Scientist for well for water, suburban parents in a developed
Mobility, Dr. Wolfgang Warnecke. country driving their children to sports events, or
Let me first say that Shell is pleased to sponsor business people travelling to close international
the Michelin Challenge Bibendum for the third time deals.
in a row. It is the means of transport – and the distance –
Let’s be honest, a big reason why many of us that differ.
come to Challenge Bibendum is to see the latest In most developed countries, mobility accounts
and coolest automotive hardware. for between 6% and 12% of GDP.
Shell, of course, makes fuels, lubricants, bitumen In many developing countries, mobility is the key
and chemicals – so it’s hard for us to compete on that will unlock economic growth and opportunity. “Mobility is
glitz and glamour. But we have brought along a So mobility should not be confused with the
not just about
couple of vehicles you really ought to see. discretionary choices we make about transportation
One is a prototype Shell Eco-marathon car built – the second car in our garage, the long weekend
hardware. It’s not
by students. trip to Spain in February. even just about
In less than a week, over 200 cars like this Mobility is actually necessary to our livelihoods transportation.
one will compete in the 2011 Shell Eco-marathon as well as our lifestyles. Mobility is
Europe event at the Lausitzring race track – about And mobility depends on energy. about access:
one hour’s drive from here. According to the International Energy Agency,
the access of
Roughly 3,000 students from schools around road transport alone accounts for approximately
Europe will compete to see who can design, build 17% of the world’s energy use every year. Adding
human beings
and drive the car that can go the furthest on the ships, airplanes and rail transport raises that to to education, to
least amount of fuel. Last year’s winner achieved the 22%. work, to medical
equivalent of 4,896 kilometres on one litre of fuel. If Most of our customers at Shell use our products care, to resources,
you want to be inspired by what the next generation to enable some form of mobility – from petrol, to family networks
is doing, I invite you to join us there. diesel, biofuels, bunker oil, avgas, and many
– even to social
We’ve also brought a concept car designed by other forms of transport fuel, to lubricants that help
and political
Gordon Murray. We’d love to take credit for the engines run smoothly and drive trains; from bitumen
design, but that belongs to Gordon. What we have used to pave roadways and support train tracks to
freedom. And it’s
done, however, is collaborate with Professor Murray petrochemicals-based plastics that make up 11% about the flow
on a new concept lubricant that can deliver as much of the average new car and are light, helping to of goods and
as a 6.5% fuel economy improvement compared to improve fuel efficiency. products to and
a standard 10W-30 engine oil. Shell alone supplies millions of litres of fuel from factories,
You can see both of these vehicles, in the flesh, around the world every day. For road transport,
markets and
on our stand. this is done through our 43,000 forecourts in 78
countries. Our Aviation business refuels a plane
customers”
2Mark Williams: Remarks to the Michelin Challenge Bibendum media briefing
every 12 seconds. And our marine division serves questions and comments on all these areas in a few
more than 15,000 vessels in over 600 ports. moments.
So as an energy company our business clearly But first I’d like to offer some examples of how
includes helping to deliver mobility to our customers. Shell is doing its part.
The Michelin Challenge Bibendum is at least in We’re working with a wide variety of partners to
part about peering into the future of that business. tackle the challenge of growing demand for cleaner
Predictions are risky but I will make three with transport in a three-part approach that we call
confidence. Smarter Mobility.
First, the demand for mobility will grow. There
Smarter Products
will be more cars and trucks on the world’s road,
perhaps even doubling in number by 2030. Air The first part is smarter products.
travel will grow, too. So will shipping. It’s easy to see how vehicles have changed and
That growth will be driven in part by an improved over the last 100 years. It’s not as easy
expanding population, in part by economic growth, to see how fuels, lubricants and chemicals have
and in part by a sharp trend toward urbanisation. evolved.
Which leads to another safe prediction: that But they have. At Shell, we started developing
the future of mobility will demand not just more, but better fuel economy formulas as early as the 1920s.
more diverse and lower-carbon sources of energy. And for energy companies as well as carmakers,
Standard petrol and diesel will remain the the opportunity to improve further – to reduce the
backbone of the world’s transport fuel portfolio amount of energy required to propel a vehicle and
for decades to come. But increasingly they’ll be to cut its emissions at the same time – still exists.
supplemented by a range of other solutions. Our range of smarter products start with biofuels
These will include advanced petrol and diesel, from our sugarcane ethanol joint venture with Cosan
biofuels, natural gas, electricity and hydrogen. in Brazil to our work on next generation biofuels
Carbon capture and storage offers a means of with companies like Virent, Iogen and Codexis. We
reducing the carbon content of fossil fuels. see biofuels as the most commercially viable way
This mix of approaches will develop in different to reduce the CO2 emissions of transport fuels for at
ways, in different countries, and along different least the next decade.
timelines. Each approach has pros and cons that But there are other solutions we think are
governments and customers will have to weigh up important to the market today.
carefully – climate change or energy security? Cost For example:
or performance? Sustainability or convenience? n Shell FuelSave – the most advanced fuel
Which in turn leads to a third prediction: economy grade formula ever, helping drivers to
changes to mobility systems some of us have today save one litre of fuel per tank at no extra cost.
– ships, trains, planes and automobiles fuelled every In two years and across 10 countries, we
day by millions of barrels of fossil fuels transported estimate Shell FuelSave unleaded has saved
through hundreds of thousands of miles of pipeline motorists 480 million litres of fuel;
– will depend on managing many chicken and egg
n Shell Helix Fuel Economy formula – a fully
dilemmas.
synthetic lubricant that can improve fuel economy
For example, vehicles that run on new fuels
by as much as 2.2%;
can only emerge in conjunction with new fuelling
infrastructure; new consumer habits, choices and n A packaging solution for Walmart called
preferences; new policies that send appropriate Ecobox, a cardboard carton with flexible
price signals into the market; and technical plastic liner which reduces disposal of plastic
and residual oil into the waste stream – we “At Shell, we
breakthroughs on, for example, sustainable biofuels
and clean sources of electricity. earned Walmart’s Sustainability Supplier of the started developing
These things demand that car companies, energy Year award for that one; better fuel
companies, city planners, policy makers, consumer n A range of clean fuels, lubricants and chemicals economy formulas
groups, advertisers, and research labs must, based on our massive gas-to-liquid project in as early as the
Qatar. This is a great example of how we can
therefore, work together. 1920s”
Wolfgang and I will be pleased to address your leverage our upstream and downstream
3Mark Williams: Remarks to the Michelin Challenge Bibendum media briefing
capabilities to deliver smarter products to our affordable mobility will be for much of the rest of this
mobility customers. century.
Shell is active in a wide range of infrastructure
Smarter Use
innovation and development for more energy
The second part of our smarter mobility efficient, lower emissions mobility. For example:
approach is smarter use.
n New bitumen technologies that provide lower
More efficient and sustainable mobility is at least
cost and lower energy ways to pave the
as much about the choices customers make in the
expanding network of roads;
way they use products as it is about the products
n Low CO2 electric power generation for use
themselves.
on tomorrow’s smart grids through cleaner and
For businesses these tend to be very rational
abundant natural gas and carbon capture and
decisions based on objective considerations of cost
storage;
versus value.
But for individuals these questions involve n Partnerships and coalitions for creating
habits, lifestyles, national culture, convenience, and sustainable biofuels policies and markets;
tolerance for cost. n Partnering to understand the possibilities of future
Sometimes they also boil down simply to having electric charging and hydrogen networks;
the right knowledge and tools. n Working with municipalities on better ways to
At Shell we actively enable ways for customers, fuel and manage public transit systems.
partners, governments and our own facilities to
I think it’s clear – even just from a random
“use less and emit less” for mobility. For example,
walk around Templehof this week, that meeting
FuelSave Partner is a fuel management solution
the smarter mobility challenge will require a
that can help commercial transport fleet operators
coordinated, co-operative approach.
save up to 10% on fuel and reduce their fuel-related
Governments, businesses and consumers will
carbon emissions.
have to work together. Governments can accelerate
Through our FuelSave Driver Education
change through policy that encourages the
Programme we’ve trained over 200,000 people
introduction of new, cleaner, better performing and
in fuel efficient driving practices through face-to-
more available fuels – especially biofuels.
face training, driving simulator online tutorials and
Fuel suppliers can improve the efficiency of fuels
challenges to see how far people can go on a
and reduce their emissions.
single litre of Shell FuelSave.
Car makers can develop more fuel efficient
Smarter Infrastructure vehicles.
Finally, mobility depends not just on the Transport consumers can make better choices.
products and use of transport, but also on smarter These are the starting points for smarter mobility.
infrastructure: roads, airports, ports, bridges, tunnels, I’m proud that Shell is playing a leading role in
traffic systems, mass transit, fuel production, supply getting there. And I’m delighted to be part of
and distribution, and perhaps above all the design the collaboration here at Michelin’s Challenge
and layout of cities. Bibendum.
Thank you... and now Wolfgang and I are
By 2050, three-quarters of the world’s 9 billion “At Shell
people will live in cities. All these new city-dwellers eager to hear what’s on your minds.
we actively
will require development equivalent to a new city
of one million people every week for the next 30
enable ways
years. for customers,
Already almost 80% of man-made CO2 is partners,
emitted from cities. governments and
Recent research puts the cost of development our own facilities
and operation of urban infrastructure at $350 trillion
to “use less and
to 2040 – seven times current annual global GDP.
emit less” for
Choices made now about how those dollars will
be spent will determine how clean, efficient and
mobility”
4Mark Williams: Remarks to the Michelin Challenge Bibendum media briefing
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