Chairman's Message

Russell celebrated 40 years with Shell in 2008. He joined Shell after graduating in law from the University of Melbourne and has held positions in both the upstream and downstream businesses in Australia, and globally. About half his career has been spent overseas in a series of international assignments. He returned to Australia in 2006 to take up his current position.

A: What has been constant for the past 107 years of Shell's presence in Australia is change. At present our upstream business is experiencing rapid growth in line with Shell's global strategy of "more upstream, profitable downstream". Looking forward, I expect to see our upstream interests in Australia become even more important to Shell's global growth aspirations. At the same time, we will continue to run our downstream business profitably, by reducing complexity and ensuring we meet our customers' requirements.

A: Our products literally help to keep the wheels of the economy turning. We produce and sell fuels and chemicals for private consumption and for industry all over the country. We invest in exploration and production of gas and oil, most of which is exported, bringing a significant benefit to the economy. And we employ and develop people, linking them to the best of our worldwide technology, which also boosts the economy. We also contribute to the economy through our social investment programme. We are very active in our support of communities, especially in the areas of education and science, around our facilities and generally across Australia.

A: Not only is it possible to innovate in Australia, but it is also imperative we do so. To fail to innovate is to fail to meet your customers' needs, and to be left behind by your competitors. In this aspect it is very helpful to be part of a global organisation and have the benefit of being able to tap technology developed by Shell in other places. We have been innovative in the production of clean fuels, such as the introduction of Shell V-Power, and in earlier years, the introduction of unleaded petrol. There is always an opportunity to do something a bit differently. In our upstream business we have developed advanced drilling techniques and innovative ways of producing liquefied natural gas (LNG) from increasingly more remote and difficult locations.

A: You can never place too much emphasis on health and safety, and you always worry about whether you are doing enough. It's as fundamental as breathing. We are involved in hazardous activities such as driving, working at high temperatures, and even sitting at a computer in the office with electricity all around us. We think about it a lot and always worry about whether we can do it better. We need to be just as vigilant in our offices as we are in the more obviously hazardous parts of our operation.

A: It is a continuing challenge to remunerate people appropriately, to give them an opportunity to develop themselves, and to help them meet their long-term career aspirations. We work to create an environment where our employees are happy to come to work. The reputation of Shell as an employer in the community is generally very high. We have employment policies to help us be diverse and flexible. Sometimes it is a popular sport internally to grumble but that makes us do things better. And our folks tell us when we get it wrong!

A: Our size means that we are very visible. The community rightly has very high expectations about our propriety, our performance and our integrity. So our reputational issues are about the things we do that might cause people to be concerned about our basic values. I pay a lot of attention to them. It is critical that we continue to operate our business to the highest standards because our reputation depends on what we do, not what we say. As part of our operations, we recognise that we have a responsibility to the local community, which is why we have an active social investment programme, focusing on the environment, health and education. My feeling that I am working for a principled company that cares and behaves properly is what has kept me here for 40 years.

Russell Caplan, Chairman of the Shell companies in Australia, celebrated 40 years with Shell in 2008. He joined Shell after graduating in law from the University of Melbourne and has held positions in both the upstream and downstream businesses in Australia, and globally. About half his career has been spent overseas in a series of international assignments. He returned to Australia in 2006 to take up his current position. Russell is currently Chairman of the Board of the Australian Institute of Petroleum; Chairman of the Melbourne and Olympic Parks Trust; and a Non-executive Director of Orica Limited.