Powering progress together through the energy transition

Title: Andy Brown- Powering Progress Together through the Energy Transition - from YouTube

Duration: 8:27 minutes

Description:
Andy Brown, Director of Shell’s global upstream business, tackles the topic of powering progress together through the energy transition, providing more and cleaner energy solutions.

Andy Brown- Powering Progress Together through the Energy Transition - from YouTube Transcript

Session with Andy Brown

[Title]
Director of Shell's global upstream business

[Video footage]

Bird’s eye view of a large, darkened auditorium with seating organised around the stage in the centre. Vertical banners appear to be suspended all around the room, and big screens are situated at various points around the room, facing each block of audience seating. An NHO logo remains at top of frame-right throughout. Andy Brown enters at frame-right and walks up the steps to the centre podium. Mid-view of Andy climbing the steps to the podium and picking up a small device before speaking.

[Audio]
Audience applause.

[Andy Brown]
Good morning everyone. I want to talk about powering progress together through the energy transition, providing more and cleaner energy solutions.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Text displays]

NHO / Andy Brown / Direktør for Shells globale oppstrømsvirksomhet

[Andy Brown]
Now, the oil business has a couple of challenges. One with the low oil price, to stay competitive.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Andy Brown]
But also, to see our way through our future existence through this energy transition.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text beneath the Shell pecten, all against a dark blue background on which the earth is seen to be rotating.

[Text displays]

Powering progress together through the energy transition / Providing more and cleaner energy solutions
Andy Brown / Upstream Director Royal Dutch Shell

[Andy Brown]
I first have to show you a cautionary notice because we’re in the closed period. This basically says don’t invest based on what I’m going to say now.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text against a dark blue background on which the earth is seen to be rotating.

[Text displays]

[Illegible]

[Andy Brown]
But this is about Made in Norway. And Shell has 100-year history in this country and is very proud of finding and building Troll, of building Draugen, of being in control of Gasnor, of running Knarr, of managing the Nyhamna gas plant, of managing Ormen Lange, which delivers 20% of the gas to the United Kingdom. It is a rich history of Made in Norway.

[Video footage]

Close-up of the big screen with the cautionary notice displaying and then disappearing as the image of the rotating earth zooms in to show a satellite image of Norway and the surrounding ocean. Several yellow location points appear at points around Norway as text and graphics appear on the screen at frame-left against this background, each graphic relating to each of the location points respectively.

[Text displays]

Shell in Norway

[Graphic]
A publication featuring the Troll platform and legs standing tall in the ocean with Norwegian headlines and text above and alongside the platform.

[Text displays]

Shell in Norway / Troll

[Graphic]
Low angle still shot of the Draugan platform in the ocean.

[Text displays]

Shell in Norway / Draugen

[Graphic]
Low angle still shot of Coral Methane tanker and another vessel alongside it in the ocean.

[Text displays]

Shell in Norway / Gasnor

[Graphic]
Bird’s eye view still shot of the Knarr vessel in the ocean.

[Text displays]

Shell in Norway / Knarr

[Graphic]
Aerial still shot of the Nyhamna gas plat and the surrounding countryside and water.

[Text displays]

Shell in Norway / Nyhamna

[Graphic]

CGI imagery of a cross section of landscape, from the sky above to belowground, showing the subsea Ormen Lange gas pipeline.

[Text displays]
Shell in Norway / Ormen Lange

[Andy Brown]
But also, Norway is a tremendously important supplier to our global business. And this is the Prelude project being built in Korea for Australia, floating LNG, 600,000 tonnes when fully loaded, 500 metres long, the largest thing man has built that floats, 25 top Norwegian companies providing their technology to this project. And many other projects like it around the world. But that’s not why we’re here.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Close-up of the big screen, displaying a low angle still shot of the Prelude FLNG out in the ocean under blue skies, while text displays at frame-left. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the Prelude FLNG image with text, as before.

[Text displays]

Competence / Prelude FLNG
DOF subsea / Haakon Larson AS / Parker Scanrope / Bredero Shaw / Aarbakke / Aker Solutions / AGR / Autronica F&S AS / Dreggen / Farstad / Frank Mohn / Imenco / LHE / Norsafe / Viking / Scana Steel / Air Products / Exheat / Boss AS / Chalmit / Jotun / HiTech / NLI / Oceanflo / Øglænd System / Technip / Sperre

[Andy Brown]
We’re talking here about the transitions, the long-lasting changes that are taking place in the energy system. We’re talking about having to provide more energy with less CO2, in a world that’s growing from seven to nine billion people at the middle of this century. There are Norway’s population appearing on the planet every 20 days. And over this century, energy demand will double.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text across the centre of the screen, seen against a dark blue background on which the earth is seen to be rotating.

[Text displays]

Energy landscape substantial and long-lasting shifts / The world needs more energy and less CO2

[Andy Brown]
And how do we deliver double that energy for zero CO2 emissions? When we look at this, we have to consider it’s not just about what Norway does, it’s not just about the OECD, it’s not about the high-income countries. 20% of the world’s population use 50% of the world’s energy. It’s the 80% of the world’s people that like the services, that like the utilities, that like the mobility that we enjoy…

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text at the left of the screen, alongside which three images display with text and blue horizontal bars below each image which indicate quantitative information relative to the text. The three images, from left to right, are of an individual lying on an expansive lawn with upmarket houses in the background, a high angle view of a city street with multiple lanes filled with vehicles, and finally, a young Asian girl seated cross-legged on grass with a laptop on her lap. This then cuts to a close-up of the screen, as just described.

[Text displays]

Growth with lower emissions / Energy security / Energy affordability / Environmental stability
High income 150-300 GJ/person/year / Fast growing 100 GJ/person/year / Developing 20-50 GJ/person/year

[Andy Brown]
…that we’re going to have to make sure get clean energy. The 1.1 billion people with access to no electricity, one billion with intermittent electricity. And just to epitomise that, Norway is one of the most advanced countries. Two-thirds of your energy is renewable. But yet your CO2 per capita is double the global average. Just gives a sense of the challenges you face, or we all face.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the text and three images previously described. Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Andy Brown]
But we also need to recognise that not all energy requirements are going to be the same. The pace at which we can decarbonise will be different in different areas.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Close-up of the big screen, displaying text in the centre of the screen against the background of an image which depicts a bird’s eye view of a shipyard in front of a city skyline with an evening sky above shaded in hues of pink and orange.

[Text displays]

Not all energy requirements are the same

[Andy Brown]
And if we look at those sectors, the four key sectors, power generation – everyone thinks if we can decarbonise power, it’ll be fine. 20% of the world’s energy is delivered through power. Only 20%. So if we put all the wind and solar systems in place, you’ve only addressed 20%. Okay, 13 gigatonnes of CO2, a big change but not where we need to get to.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Close-up of the big screen, displaying four images in four quadrants with text also displaying in each quadrant. The four images are, from left to right and top to bottom, an aerial view of city buildings and skyscrapers by night, a front view of an aeroplane on the runway with a man dressed in safety gear in the foreground, a close-up of machinery on a factory floor, a close-up of a hand turning a dial on a large panel of switches and dials. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the text and four images previously described.

[Text displays]

Buildings / Transport / Industry / Power generation

[Andy Brown]
Buildings will be also relatively easy if we can, like power, manage intermittency of renewables. But industry is going to be more difficult. The energy intensity in making steel or cement is such that today we can’t do that with renewable power. And I just want to focus on transport because there’s a lot discussed on transport. And we did a scenario. We looked at this century and how we get to a zero-emission world.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Andy Brown]
And we looked at the various sectors. Clearly, passenger car transport – yes, we can do it. Electric vehicles are here, they can grow. Actually, freight, lorries – we can see how a large part of that on a global level can be decarbonised. But aeroplanes, ships, I think are going to be more difficult in this scenario and be much more resilient to that change. This is a 100-year… well, 85-year look forward.

[Video footage]

Close-up of the big screen, displaying title and subtitle text, with a key below the text showing four symbols used to indicate hydrocarbons, hydrogen, electricity and wind. Below this, five circles of increasing size display alongside each other with numbers inside the circles, and with the four symbols appearing in various shaded areas of the circles as quantitative indicators. Below each circle, explanatory white graphics display. The graphics are, from left to right, a train, a ship, an aeroplane, a car and a truck. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the text, circles and graphics previously described. Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background, cutting back to a close-up of the big screen displaying the text, circles and graphics previously described.

[Text displays]

Transport energy consumption in a net-zero emissions world
Energy consumption in Exajoules per year
Hydrocarbons / Hydrogen / Electricity / Wind (Sail)
5 / 19 / 30 / 64 / 67

[Andy Brown]
If we look forward 25 years which is, kind of… yes, well it’s, kind of, tomorrow really in terms of the fleet and the towable change that will happen in the world – we’ll have about 90 million barrels a day of oil demand today.

[Video footage]

Close-up of the big screen, displaying a rear view still shot of a tanker on a highway at frame-left and title and subtitle text at frame right as well as a horizontal bar graph shaded in various colours along with some numbers. Below the bar graph, similarly shaded graphics display which relate back to the bar graph. The graphics are, from left to right, a yellow car, a blue truck, a green ship, a pink aeroplane, a white train and mustard-coloured factory buildings.

[Text displays]

Oil by sector / Continued growth in heavy duty transport and non-energy
2015 / 88.7 mln bbl/d

[Andy Brown]
What happens in 2040? Well, we think actually, for passenger cars, it’ll go down despite having double the number of cars on the planet. Why? Well, partly because of electric vehicles.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the image, text, bar graph and graphics previously described. However, an additional bar appears above the existing bar, along with more numbers. This cuts to a close-up of the screen as described.

[Text displays]

Oil by sector / Continued growth in heavy duty transport and non-energy
2040 / 22.2 mln bbl/d
2015 / 88.7 mln bbl/d

[Andy Brown]
In this scenario, which is a base scenario, we have 170 million electric vehicles in 2040, 10% of the world’s fleet. Energy efficiency in cars is going to be more important than the actual energy vehicle impact. But where we are concerned or where we do believe there will be persistent oil demand is in freight, is in shipping, is in air transport, with the world growing at 3% to 4% a year, where it is much more difficult to decarbonise these sources. And with the other sources, we can see a world where actually oil demand might increase. Now, that sounds like an excuse for an oil company. It’s not. It’s just the reality.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Close-up of the big screen, displaying the image, text, bar graph and graphics previously described. However, the top bar of the bar graph lengthens and the number alongside changes several times. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the image, text, bar graph and graphics previously described.

[Text displays]

Oil by sector / Continued growth in heavy duty transport and non-energy
2040 / 65.1 mln bbl/d -- 65.9 mln bbl/d -- 80.8 mln bbl/d -- 104 mln bbl/d
2015 / 88.7 mln bbl/d

[Andy Brown]
So if we look at this scenario of where we think the energy system will change, 1%...

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text across the centre of the screen, seen against a blue background featuring solar panels in which the outline of wind turbines are reflected.

[Text displays]

All sources will be required

[Andy Brown]
…1% of the world’s energy comes from solar and wind at the moment.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text at the top left of the screen, below which a list of symbols of various colours display alongside text identifying each symbol. To the right of the list, a circle displays with a number inside the circle, and the previously mentioned symbols appear in various shaded areas of the circle, along with percentages. This cuts to a close-up of the big screen, as just described.

[Text displays]

Sources in a net-zero emissions world
Gas / Oil / Coal / Bioenergy / Nuclear / Solar / Wind / Other
2015 / 21% / 31% / 28% / 11% / 5% / 0.5% / 0.5% / 3%

[Andy Brown]
We think that can grow to over 40% in this century. We think, at the same time, that fossil fuels will go from 80%, but still we persist – and for the reasons I outlined – to around 25%. We will need CCS to get to a zero-emission world.

[Video footage]

Close-up of the big screen, displaying the image, text, symbols and graphics as previously described. However, a second larger circle appears alongside the first one, also with a number inside the circle, and the previously mentioned symbols appearing in various shaded areas of the circle, along with percentages

[Text displays]

Sources in a net-zero emissions world
Gas / Oil / Coal / Bioenergy / Nuclear / Solar / Wind / Other
2100 / 9% / 7% / 9% / 15% / 8% / 30% / 12% / 10%

[Andy Brown]
Now, what Shell does – Shell will be in oil and gas as a core part of our business for decades to come. We have to make it more energy efficient.

[Video footage]

Close-up of the big screen, now displaying a low angle still shot at frame-right, showing a person on top of a rock helping another person as they scale the rock face, seen against the background of a brilliant blue sky. At frame-left, the symbols for gas and oil display, with title and subtitle text below, as well as a list of points.

[Text displays]

Fit for the future / Improving the work is the work
Oil and gas core to Shell / BG combination catalyst for change / Integrated Gas and Deepwater focus / Competitiveness crucial

[Andy Brown]
We have to progress through to gas. That’s why BG was a transformation for us in our… in our combination with BG.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Andy Brown]
But then, going forward, we’ve got a new energy’s business. We’ve just won a wind tender in the Netherlands, the Borssele 700 megawatt plant. We have a solar business emerging – a big, one gigawatt plant being built in Oman in our oil business there. Biofuels – we’re one of the biggest biofuels producers in Brazil with Raízen joint venture.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the image on the big screen changes to a set of four images alongside each other with text and symbols below each image. The images, from left to right, are of wind turbines in the ocean, a bank of solar panels, a low angle close-up of crops growing and an image of two tall tanks seen against the sky. This cuts to a close-up of the big screen with the images and text just described, and then to an extreme wide view of Andy on the podium, the big screen still displaying the images and text just described.

[Text displays]

Wind / Solar / Biofuels / Hydrogen

[Andy Brown]
And in hydrogen, we’re going to build some 400 retail sites in Germany over the next years. We are making small steps into this, but still, it’s small compared to the big oil and gas business. But what is crucial for us is carbon capture and storage.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Andy Brown]
And Norway is a real leader here. Norway, through Sleipner, through Snøhvit, through what they do in TCM, is a real leader and Shell has also launched a number of CCS projects.

[Video footage]

Close-up of the big screen displaying text in the centre of the screen against a background image of what appears to be a rock face. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the image on the big screen remains as just described.

[Text displays]

Carbon Capture & Storage: Critical for a net-zero emissions world

[Andy Brown]
But it goes too slowly. Shell is keen to participate in the full-scale plant that’s been planned here in Norway, but CCS has to accelerate for us to get to that zero-emission world.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background. Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text at the left of the screen, alongside which a still shot displays at frame-right which is a wide view of a plant with green vegetation in the foreground and cloudy blue skies in the background.

[Text displays]

Technology Centre Mongstad

[Andy Brown]
So lastly, it’s about governance, it’s about thought leadership.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays text at the centre of the screen with an image in the background of a city skyline seen along water’s edge beneath blue skies.

[Text displays]

Governance and thought leadership

[Andy Brown]
Shell, as a company, will do its part – will do its part to progress through more gas, to replace coal, will do its part in developing new energies, in promoting CCS, in making its own business more fuel efficient. But we do need the right regulation. We do need governments like the Norwegian government, which is very advanced, in putting a proper CO2 price in place. We will need cities to be designed in the right way. We will need partnership between companies like Shell, between governments and new emerging companies. If we can do that, if we can work in partnership, I think we can make a sustainable future.

[Video footage]

Mid-view of Andy on the podium, addressing the audience who are visible in the darkened background.

[Andy Brown]
So let’s make the future.

[Video footage]

Extreme wide view of Andy on the podium, addressing the audience who are visible in the darkened background. At the top of frame, the big screen displays the dark blue background on which the earth is seen to be rotating. The Shell Pecten with a line of text display across the centre of the screen.

[Text displays]

Let’s make the future

[Video footage]

Mid-view of Andy preparing to leave the podium as the audience applauds, cutting to an extreme wide bird’s eye view of the auditorium as Andy leaves the podium.

[Audio]

Audience applause.