May 20, 2011 - Berlin.  A more ambitious and holistic approach to engineering is needed to meet the sustainable transport challenge. With two-thirds of vehicles predicted to still use current engine technologies and conventional liquid fuels in 2050, a collaborative approach to engine design will be critical to maximise fuel efficiency and reduce associated carbon dioxide (CO2) emissions over the next 40 years. This was the message from Shell executives to delegates today at Michelin Challenge Bibendum, a sustainable mobility forum, in Berlin.

While acknowledging extensive industry efforts to address the sustainable transport challenge, Tan Chong Meng, Executive Vice President of Shell’s Global Commercial business, said the progress needed to help deliver necessary efficiency gains would only happen through long-term co-engineering partnerships, where fuels, lubricants and vehicles are developed in collaboration.

“We believe that one of the best and fastest way to improve fuel economy and therefore lower CO2 emissions from conventional fuels is [for Shell] to work more closely with OEMs [original equipment manufacturers]. We need a more cohesive approach between the development of new vehicle technologies and engines and the development of new grade fuels and lubricants. That closer collaboration will, we believe, introduce innovation, sustain performance and make gains in driveability,” he said.

Co-presenting, Selda Gunsel, Vice President of Shell Global Commercial Technology, added that alongside collaboration, more radical thinking would be essential also. Using lubricants as an example, she said this would include developing formulations that sit outside the current industry specifications, aspects of which may be outdated and therefore rule out more fuel-efficient technologies.

“The demand for CO2 emission reductions gives us a very strong incentive to look again at the traditional approach. By starting from first principles, the industry will be able to develop specifications appropriate for vehicles focused on achieving improvements in fuel economy,” she said.

The benefits of a more collaborative approach were illustrated in Shell’s technical partnership with Gordon Murray Design (GMD), a British-based engineering company. GMD’s innovative, low-carbon, T.25 city vehicle was used as a test bed by research teams from both companies to develop new oil formulations. By working beyond current industry specifications, the team developed a concept engine lubricant which increased the overall fuel efficiency of the vehicle by up to 6.5% – around three times the saving that can be made by modern lubricant formulations currently on the market.

As part of Shell’s commitment to increasing fuel efficiency and its belief in a collaborative approach, Selda also announced plans to extend the testing of ultra low viscosity concept oils over a longer time period. This testing will be carried out either with OEMs or engineering consultancy partners to provide insights into potential engine wear or oil degradation concerns and how engine design and lubricants formulation can be co-engineered to help provide a solution.

Chong Meng concluded: “It is clear that no one company, not one part of the industry will succeed by acting alone. Our industry has a great track record of innovation, partnership and application to build on. And if we can work together even more closely in the future, then I am really optimistic that we can ensure our customers have cleaner, more efficient engines, fuels and lubricants in the decades ahead.”

Media enquiries
Contact Telephone Email
Lisa Sinagra +44 (0)207 934 8909
Toby Doman +44 (0)203 047 2212

Cautionary statement

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them.

These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence.

The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”.

In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.

These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases.

There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions;

(i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions.

All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2010 (available at and ).

These factors also should be considered by the reader.  Each forward-looking statement speaks only as of the date of this presentation, May 20, 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information.

In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.

We may use certain terms in this presentation, such as resources and oil in place, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website You can also obtain these forms from the SEC by calling 1-800-SEC-0330.