Royal Dutch Shell Co., Ltd. is one of the largest energy companies in the world. In the 2012 World Top 500 rankings, it achieved remarkable success and ranked first. Shell operates in more than 140 countries and regions in the world. Emphasis has been placed on emerging markets, especially the Chinese market. Its bright orange shell logo has taken root as the Shell gas station in China has become a familiar symbol for the Chinese people. What many people do not realize is that this century-old oil company surpassed oil production for the first time last year, which fully demonstrated Shell's efforts in recent years: providing cleaner and burning natural gas to reduce CO2 emissions.

Chengdu in 2013 Fortune Global Forum to be held on the occasion, the reporter interviewed the Chairman of Shell Companies in China Haibo (HuibertVigeveno), to explore the secrets of success "world first" business, as well as China, especially Sichuan, the significance of Shell's lies.

China's new chairperson moved to Beijing to learn Chinese every week

Haibo has served as Chairman of the Shell China Group for less than half a year. His Chinese ability has improved rapidly. Haibo seems to have a different talent from the average person. He can speak six languages ​​and take the seventh language in time. In Chinese, it is estimated that the problem is not great. Speaking a local language is the most direct way to understand the local culture. This may be the reason why Haibo must attend Chinese classes every week even if he is busy again. His love for China is obvious. This authentic Dutchman, while stationed in China, took his wife and four children together.

This year is the 18th year of Haibo's work at Shell. In 1995, he joined the Shell Chemicals business and was sent to the United Kingdom, the United States, Mexico, Brazil and other countries. Haibo's trajectory reflects the globalization of Shell, and its business has long been the same as the most famous tulip in the Netherlands. Today, he also shoulders heavy responsibility to come to China. According to Shell's target, by 2020, Shell China Group will become one of Shell's core business areas. To achieve the above goals, Haibo will lead more than 20,000 employees in Shell China to work together. “At the same time, we will also invest in China together with our Chinese partners around the world.” Haibo said: “We have achieved end-to-end cooperation with our partners. Full-service chain cooperation, full coordination with all levels of government, work together to deliver projects, provide products and services, but these are not enough, and with the intensification of competition, we need to be 'a team's one's drive to win in the competition.'

Haibo said: “Since my arrival in Beijing in August 2012, I spent a lot of time in all parts of China to study and understand business and get to know as many people as possible. The Chinese and Chinese culture have given me deep impressions. Many people know that Shell had come to China a century ago and Shell looks forward to the next hundred years in China."

Formulating a Development Strategy Scenario Presupposes the Future

As the world’s largest oil company, Shell’s most striking change was the realization that natural gas production surpassed oil production for the first time. In response, Haibo told reporters, “Natural gas reserves are abundant, easily accepted because they are cleaner, and they are reasonably priced. While we are striving to meet the world’s growing energy needs, we aim to reduce the amount of natural gas that can be burned more cleanly. CO2 emissions. Shell is one of the largest natural gas producers in the world. Compared to other energy companies, we provide natural gas to more countries."

This reporter learned that in February this year, Shell released a “energy outlook report” based on scenario simulations and analysis, which described the two energy perspectives that are very different in the 21st century: a scenario shows that by 2030, it will be more Clean natural gas will become the world’s most important energy source, accompanied by a reduction in carbon dioxide emissions. Another scenario shows that by 2070, solar energy will become the most important resource, but the actions to combat global warming are relatively slow. .

Over the past 40 years, Shell has been using scenario planning to explore future energy blueprints and help make strategic decisions. The new report is a continuation of this tradition - by sharing the core elements of scenario analysis, promoting open discussion and finding feasible solutions to the long-term challenges of human society. This is Shell's method for responding to the unknowable future. It is also Shell's key to future planning.

Shell's connection with China began with the kerosene provided by Shell. Today, Shell has become one of the largest multinational companies to invest and operate in China. Since Shell will increase the development of natural gas globally, will this change also appear in China?

Haibo said that in order to reduce greenhouse gas emissions, China is striving to reduce its dependence on coal, and the share of natural gas in the entire energy consumption structure in China will grow rapidly. According to the 12th Five-Year Plan, China will increase the proportion of natural gas in the energy consumption structure from the current 4% to 7.5% by the end of 2015. "Shell is committed to providing more and more natural gas to China and helping people realize their desire to control air pollution and improve the environment."

Natural Gas Development Shell China's "Unconventional" Road

The reporter also learned that Shell currently invests up to one billion U.S. dollars a year to develop unconventional natural gas in China, including tight gas, shale gas, and coalbed methane. Why is unconventional gas? Haibo told reporters, “China is still in the early stages of developing tight gas and shale gas, but it has great potential. The US Energy Agency estimates that China’s shale gas reserves are equivalent to 12 times its conventional gas reserves. In recent years, titles such as the “shale gas revolution to change the world’s energy prospects” are often used in newspapers. This seems to convey a message that unconventional natural gas is ushering in a “golden age” for development. Unconventional natural gas usually refers to natural gas with significant differences in the occurrence and accumulation patterns in the subsurface from conventional natural gas reservoirs, such as coalbed methane, deep basin gas, shale gas, oil sandstone gas, flammable ice and so on.

“The current natural gas consumption in China only accounts for 4% of the total energy structure. In contrast, this figure is 30% in Europe and the United States is 25% at this stage, and this proportion will increase due to the shale gas revolution. In China, the huge development potential of tight gas and shale gas may completely change China's dependence on coal.” Haibo further elaborated.

The successful use of shale gas in the United States ignited China’s enthusiasm for the development of unconventional natural gas: Since 2011, the country has approved shale gas as an independent mineral, introduced shale gas “Twelfth Five-Year Plan”, and launched shale gas exploration Right to tender.

Therefore, Shell's pace is in fact consistent with the planning of the Chinese government. “In the field of unconventional oil and gas, Shell has advanced and applicable technologies and has achieved remarkable results in research and development. Shell is working hard to establish upstream businesses with a certain scale and sustainable development in China and continue to look for potential mining blocks.” Haibo Told reporters.

Shell's efforts were rewarded in March of this year: the Chinese government approved Shell's first shale gas product sharing contract in China, Shell and CNPC Natural Gas Group Company in the Sichuan Basin Fushun-Yongchuan shale gas Blocks jointly explore, extract and produce shale gas. This is also China's first officially approved shale gas product sharing contract. The Sichuan project is also of great significance to Shell. In addition, Shell's refinery integration project with PetroChina and Qatar Petroleum International in Taizhou was approved. Shell has realized its refining business in China. So far, Shell has built a complete industrial chain in China, from upstream exploration and development, production to downstream lubricants, asphalt and other projects.

Will build more than a dozen gas stations in Sichuan

If Shell's upstream business seems to be far away from the public, downstream business is closely linked with our lives and travel. With the number of cars in China ranking second in the world, people are very familiar with Shell Gasoline and Shell Lubricants with bright orange logos. According to Haibo, Shell Shell (Sichuan) Petroleum Co., Ltd. operates a total of 138 gas stations in 13 city-level administrative regions in Sichuan Province. “We plan to add dozens of petrol stations in the next few years in order to provide our customers with high-quality fuel and services.”

In the automotive culture that has undergone centuries of Europe and the United States, the Shell gas station has already formed a set of standards and business models of its own. “We provide 24-hour refueling service at all gas stations in Sichuan. The gas station staff are trained to understand the company’s culture before starting work. We also regularly conduct self-inspection to ensure the quality of fuel and the quality of service.” However, compared to other gas stations, Haibo believes that Shell's advantage lies in the fact that more than 100 years of R&D and technological innovation is the guarantee of Shell's fuel quality. “Shell's unique high-tech formula ensures that the engine is fully functional and prevents the formation of coke. The additives we use have been tested to meet the requirements of Chinese local regulations.” Shell additives added to the oil have extended engine use. Life, reduced fuel consumption and environmental protection. In order to highlight the differentiation of product names, Shell did not use the traditional 90 # gasoline, 93 # gasoline, -10 # diesel, -20 # diesel, but with "strong", "Super Speed", "Super Clean", "Super "Shuang" and other names replaced. However, when Shell gas station lands in China, it must slowly adapt to the young car culture here.

Chengdu is currently the city with the most cars in western China. So although Haibo soon came to China, he has already been to Chengdu several times. “I am very impressed with Chengdu’s urban vitality and local talent pool. Sichuan is one of Shell’s key business areas in China. Both upstream and downstream businesses have developed in the province, and these businesses are managed through our Chengdu office. So, I will always come to Chengdu."

At the end of the interview, the reporter hoped that Haibo would talk about Shell's biggest difficulty in entering China and use this as a guide to refer other foreign companies wishing to enter China. He said with emotion: "In the 100 years since Shell entered China, there must have been many hardships, but more importantly, we have to look ahead." In my opinion, cultural integration is crucial and must be implemented personally and Interpersonal level. “I am convinced that when most employees can understand each other and appreciate each other, we are not far from 'one team'.

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