Shell to ‘turbocharge’ its clean energy drive

Royal Dutch Shell is preparing to “turbocharge” its bid to become a global leader in clean energy in the coming years as it seeks to overcome the “existential” challenge posed by climate change, boss Ben van Beurden has told The Sunday Telegraph.

Mr van Beurden said that the FTSE 100 giant should be able to gauge by the early 2020s whether its recent moves into the clean electricity market will be stepped up. The energy giant has so far pledged to spend between $1bn and $2bn of its $25bn (£19bn) a year spending budget on technologies including electric car charging and ­renewable energy.

“It is a highly charismatic part of our business, but it’s also very small,” Mr Van Beurden said. “I wouldn’t say that we have a deadline, because much of it will depend on how society wants to change, but I would imagine that the way things are going by the early 2020s we will know whether the hypothesis holds, and whether we therefore want to turbocharge this business.

“The biggest calling card we have is scale. We can scale much faster than anyone else,” he added.

Mr Van Beurden said Shell’s recent pledge to cut its carbon emissions by a fifth is “about the longevity of the company, and is therefore an existential issue. This is not about being altruistic.”

Source: telegraph.co.uk; 13 Oct 2018

Shell becomes a founding sponsor of the Museum of Brands

Shell’s multi-sensory journey through their iconic brand history at The Museum of Brands has drawn in droves of visitors since it opened in London in spring.

The interactive exhibit telling the history of Shell’s iconic brand, showcasing the company’s rich history and how it plans to play a key role in a cleaner energy future, opened in April.

As part of the exhibition, Shell has created “Your Brand ID”, the first digitally immersive and interactive experience at the museum, where visitors can create and personalise their own brand, and take away a digital souvenir of it.

“This exciting exhibit has enthralled many of our visitors over recent weeks,” Chris Griffin, CEO at the Museum of Brands, said. “It’s as educational as it is enjoyable.”

The Museum of Brands, Packaging and Advertising is the world’s only museum entirely dedicated to loved and memorable brands. It explores how people’s lives have been shaped by the products and brands around them, and vice versa.

Shell’s multi-sensory exhibit features alongside the museum’s other displays, which showcase 150 years of brands, packaging and advertising.

Dean Aragon, VP Shell Brand and CEO Shell Brands International said: “Shell is partnering with the Museum of Brands, Packaging and Advertising who play a key role in preserving and celebrating global brands and their heritage. In our daily lives, we’re surrounded by brands; they are woven into the fabric of society and culture. We are pleased to join the iconic brands already in the museum and to help contribute to the Museum’s ongoing success”

Over 100 years, the Shell Pecten has become a globally recognised icon.

Yet the brand goes far beyond a logo, evolving with changes in popular culture, and even helping to shape them. Shell has been by the side of drivers since the dawn of motoring. Our scientists helped to make air travel possible for millions. And today, Shell are collaborating to explore more and cleaner energy solutions. From popular advertising, to inspiring travel guides and ground-breaking documentaries, telling great stories in memorable ways has kept the Shell brand connected to its customers in an ever-changing society.

Source: marcommnews.com; 11 July 2018

How Shell is tackling the gender gap

As attitudes change in the post #MeToo era, brands from publishing to tech are tackling the lack of female representation in their workplaces head on.

Tackling the gender gap in engineering and technology has been a big area of focus for Charlie Fryer, digital and social media strategy advisor at Shell. Over the past 18 months she has been leading a project aimed at using social platforms to encourage more women and girls to enter STEM careers, those in science, technology, engineering and maths.

The team found that while getting women into the sector in the first place remains a challenge, encouraging them to stay is just as big an issue.

“A huge problem is that 30% of the women engineers who make it leave and it’s not because they have families, it’s because of something a little bit darker,” explained Fryer.

“We did interviews with engineers around the world working at all sorts of different companies. We took the experience they shared with us and turned it into a script for a campaign which essentially takes those micro-aggressions, the intangible things that are destructive when they accumulate and are hard to communicate.”

Launched in April, the campaign integrates the women’s real life experiences into a content series spanning tear-jerking videos to satirical memes.

Source: marketingweek.com; 20 June 2018

Shell – On top of the world #makethefuture

Shell’s latest ad didn’t stick to the usual format. To reach as many young people as possible, it launched a music video featuring five pop stars from across the globe including Jennifer Hudson, Pixie Lott, Luan Santana, Yemi Alade and Monali Thakur.

But they don’t just sing along to Imagine Dragon’s ‘On Top of The World’, they also show off five cleaner energy initiatives, such as gravity lights, which are affordable and safe lights that can be powered by a bag of rocks?

 

Source: marketingweek.com; 18 Jan 2018

Shell, bio-bean and Coffee-Drinkers Collaborate to Help Power London’s Buses

Shell and bio-bean announce that together they are helping to power some of London’s buses using a biofuel made partly from waste coffee grounds.

The B20 biofuel contains a 20% bio-component which contains part coffee oil. The biofuel is being added to the London bus fuel supply chain and will help to power some of the buses; without need for modification.

Biofuel provides a cleaner, more sustainable energy solution for buses across London’s network by decreasing emissions.

“Our Coffee Logs have already become the fuel of choice for households looking for a high-performance, sustainable way to heat their homes – and now, with the support of Shell, bio-bean and Argent Energy have created thousands of litres of coffee-derived B20 biodiesel which will help power London buses for the first time,” said bio-bean’s founder Arthur Kay. “It’s a great example of what can be done when we start to reimagine waste as an untapped resource.”

The average Londoner drinks 2.3 cups of coffee a day which produces over 200,000 tonnes of waste a year, much of which would otherwise end in landfill with the potential to emit 126 million kg of CO2. bio-bean works to collect some of these waste coffee grounds from high street chains and factories.

The grounds are dried and processed before coffee oil is extracted. bio-bean works with its fuel partner Argent Energy to process this oil into a blended B20 biofuel. 6,000 litres of coffee oil has been produced, which if used as a pure-blend for the bio component and mixed with mineral diesel to form a B20, could help power the equivalent of one London bus for a year.

This latest collaboration is part of Shell’s #makethefuture energy relay, which supports entrepreneurs turning bright energy innovations into a positive impact for communities around the world.

Sinead Lynch, Shell UK Country Chair, said: “When it comes to clean energy, we are always looking for the next inventive solution. A good idea can come from anywhere, but with the scale and commitment of Shell, we can help enable true progress. We’re pleased to be able to support bio-bean to trial this innovative new energy solution which can help to power buses, keeping Londoners moving around the city – powered in part by their waste coffee grounds.”

bio-bean founder Arthur Kay won Shell LiveWIRE’s Innovation Award in 2013 and the Mayor’s Entrepreneur Programme in 2012 with his ideas about turning coffee waste into fuel. bio-bean has since gone on to produce bio-mass pellets and briquettes called Coffee Logs, before this latest biofuel innovation.

Source: marcommnews.com; 20 Nov 2017

How an oil and gas giant outmaneuvered low oil prices

Italian oil and gas company Eni has transformed under a leader determined to reduce costs without cutting jobs—instead including employees in the turnaround mission.

Transforming a business that must reduce costs doesn’t always have to mean pain for employees—even if that business is a multinational energy company hit hard by dropping oil prices. In this interview, Eni CEO Claudio Descalzi speaks with McKinsey’s Rik Kirkland about navigating the oil and gas company amid drastic drops in oil prices, securing exploration successes, reinvesting capital gains, and driving a comprehensive culture change.

Video of Interview

Transforming an oil and gas giant

I wanted to reduce costs without cutting head count, and I wanted to optimize the structure of the company. Reorganization was very useful, and we got about €800 million per year of cost reduction by just changing the organization and distributing resources in a different way. Those were the first steps.

Then we turned to the refinery. The refinery was exceeding capacity in Italy—which was also the case in Europe overall, but in Italy especially—by about 40, 50 million tons per year. So we shut down the one refinery that caused the big losses for the company, and the same thing was done for the chemical business.

I had to study, because I had to talk to and convince the people that we have to change. Not just culture in terms of costs, but culture in terms of technology, applications, and final output for the chemical and refinery businesses. It was an interesting and intense activity. I had to be involved personally because I had to convince my people—not just give an order or use a consultant—I had to work with them. That was a big three-year effort.

What’s the right amount of risk?

My main objective at the very beginning was to bring the cash neutrality from about $120 per barrel—which is very high, because if you have a cash neutrality at $120 per barrel and the price is $110, you lose $10 per barrel—so the issue was to go from $120 down to about $50 per barrel, where it is now.

I started in 2011, 2012. I called it dual exploration. What I thought to do, is say, “I take a high stake in the asset.” Between 70 percent and 100 percent. I take the risk. I go and select an asset with a low risk, but in a good place, as I told you, close to our facilities. Once I give value to this asset, I can sell at a very high value. Because I have big stake, I can sell at 30 percent, 40 percent, 50 percent.

I remain with the 40 percent; that is a typical stake to operate. And I operate, but I can’t anticipate the cash in. You can imagine when I started this, we start the exploration, then we develop. Before cashing in, you can wait for four, five, or six years, then you can cash in immediately. So you reduce your risk. You de-risk your position in the country. In the last three and a half years, we got €9.1 billion from exploration selling, with a capital gain of €8.1 billion, so a very high capital gain, that allowed us to reinvest. That is something that we started immediately.

Retraining to support a transformation

When you retrain, you have the opportunity to communicate, to explain not just what your employees are going to do—so you give them a drive, direction—but also what is happening in the company. Because we are a big company, and when you talk with the first line or the second line, they know what is happening.

Then you go down, down, down in the scale, and people don’t know. They are scared. They don’t understand. They receive very scary messages from outside, from the press, from the television, from the world. So you have to explain where you are going.

The market for energy in Africa and beyond

We are the biggest exploration and production company in terms of equity production and research; we are in 15 countries. In Africa there is a lot to do in terms of access to energy, so we need to develop the African energy market. Consumption, it has to grow. But it is still at the very beginning, considering that it represents 15 percent of the worldwide population, which uses 3 percent, 4 percent of the worldwide energy. Europe is 7 percent, and consumption is at 12 percent, 13 percent. And Africa needs energy. Normally the model was different, so we’d find gas and oil and do exports. Africa has a lot of energy, but it doesn’t have access to energy. More than 650 million people don’t have access to electricity, so you cannot think that they can develop themselves. That is a wonderful market.

I don’t think that oil and gas is going to disappear because it’s not sustainable, as some argue. We cannot do differently, because when we talk about renewables and electrical cars, we talk about ourselves—we think about Europe, we think about the US, and we represent the US, Europe, Japan, New Zealand, and Australia, or 14 percent of the world population. Eighty-six percent are in a different kind of situation. They don’t have gasoline. They don’t have electricity. They don’t have power.

So they need oil and gas. They need renewables, clearly. They need a different energy mix.

The secret to staying balanced and resilient

First of all, it’s family. You must have a strong family. A strong family, wife, children, a situation where you can be comfortable and you know that you have them with you, and that is quite important.

And then passion. When there is passion, there is adrenaline, and you love what you are doing, you are never tired. When you love your people, you think that you have to talk to them because you have to convince them, they have to understand that you are with them, you are not tired.

I grew up in this company, so all my family’s here, because I have all my people; we grew up together, and we are still together. I started my 37th year in the company.

I’m really lucky, honestly. And I thank God that I have this lucky life.

Source: mckinsey.com; Oct 2017

Shell-7-Eleven split: Why breaking up was the right move by Shell

Shell unveiled plans to end its 11-year partnership with convenience store chain 7-Eleven in a bid to take back its petrol stations in Singapore. A Shell spokesperson told Marketing the stores would be renamed as Shell Select and has also paired up with the likes of McDonald’s to offer “options that are aligned to its customer value propositions”.

Currently, the revamp is already underway and several industry players Marketing spoke to applauded the move by the petroleum giant, saying that this was a means for the station to “take back control” of the customer journey and create a more seamless end-to-end experience.

According to Andrew Crombie, brand consultant and former CEO at Fitch, Southeast and North Asia, the move will create a more seamless end-to-end experience to meet the demanding expectations of the modern mobile customer. This gives them a chance to break the predictable fuel/convenience model offered by most fuel brands.

Crombie added that Shell has an incredible asset in its distribution network, and a huge opportunity to gain first-mover advantage in reshaping the overall mobility and convenience offer against other fuel brands.

“It can’t fully realise this opportunity if it has to negotiate or coordinate each initiative with a third party operator,” Crombie said. He added that with the split, Shell will be in control of the convenience store and the products it offers. It will also have more opportunities to test new concepts and vary its offers geographically and create a more integrated overall concept for each site.

“A lot has changed since the relationship has started in 2006. Customers are more aware and more connected and their needs are different. And mobility is in the midst of a major change. To take best advantage of this change, Shell needs to be able to control every element of its overall offer and this move to part ways with 7-Eleven in Singapore makes this more achievable,” Crombie explained.

From a branding perspective, Crombie agreed that without doubt, 7-Eleven drew the short end of the stick as it loses a ready nationwide-distribution network with convenient parking, and with a regular and reliable clientele. He added:

7-11 loses significant brand presence as its signage numbers are reduced and the strong association of brand credibility and modernity that comes from Shell.

Agreeing with Crombie was Jane Perry, managing director of Geometry Global Singapore, who deemed the move strategic for Shell to better differentiate its business from competitors. The partnership with 7-Eleven, she said, made offering a seamless customer experience for its consumers challenging.

“This is because both Shell and 7-Eleven have strong brand equities – hence the seamlessness of the customer experience might be compromised in the process,” Perry said. She added:

It is also challenging to marry the brand equities of two retail heavyweight brands.

“The move will give Shell 57 more touch-points to engage and connect with consumers. This is something which it was unable to do before as it had no control of customers entering another retail environment,” Perry said.

Perry said the bold separation will give an opportunity for Shell to innovate throughout the entire fuel station experience and offer something different for consumers.

“Customer engagement through fuel stations is something which is still lagging behind in Singapore, when compared to the rest of the world. It’s an experience which at times still feels quite transactional and disjointed,” Perry added.

Simon Bell, managing director of FITCH said currently the partnerships in place between convenience stores and fuel stations are typical with nothing unique or differentiated. Bell added the move was smart of Shell to invest in its own brand and extend the customer experience from forecourt to convenience store, rather than to share its limelight and real estate with 7-Eleven.

“In branding, having an own-able experience is the holy grail. Done right, retail wields this power. To me, Shell is focusing on Shell (or finding new partners such as McDonald’s) that will assist it to achieve this. The point of difference will come in how the new relationship (whether convenience store, fast food or something else) can complement and enhance the Shell forecourt and station experience,” he added.

Source: marketing-interactive.com; 3 Oct 2017

Chevron Lubricants creates new units to align with regional growth strategy

Chevron Lubricants is creating two new business units following the retirement of Farrukh Saeed as vice president, Asia Pacific Region on 31 July 2017, after more than 34 years with the company. The formation of the two new operations will support ongoing expansion and sales growth in the broader Asia Pacific region.

Chevron Lubricants did not comment to additional queries by Marketing at the time of writing.

The new units are said to be in alignment with its regional growth strategy. The Thailand, Sri Lanka, Pakistan, Philippines, Vietnam, Malaysia, Singapore and Indonesia operations will now be part of a new Asia/Pakistan lubricants business unit. In addition, the Greater China business unit will be responsible for China, Taiwan and Hong Kong finished lubricants operations including the growing e-commerce activity in these countries.

Rochna Kaul has been appointed to serve as general manager for the Asia/Pakistan Lubricants business unit, based in Singapore. Kaul previously served as general manager, Chevron International Products, based in South Africa.

On the new Asia/Pakistan business unit, Kaul said: “We have experienced steady growth in our Asian markets. We will continue to drive our full portfolio of lubricant products across the region. Our focus is to be a reliable partner and to invest in our strategic brands.”

Baomin Guo has been appointed general manager for the Greater China Lubricants business unit, based in Beijing. Guo was previously advisor to the president, Chevron Lubricants.

“Our new business unit signals the increased strategic focus we are placing on the Greater China market,” said Guo. “Chevron’s relationships with leading companies and OEMs has grown steadily and we have quickly established new digital sales channels for the passenger car segment with China’s leading e-commerce and online-to-offline (O2O) platforms.”

Source: marketing-interactive.com; 2 Aug 2017

Shell Malaysia launches first official online store on Lazada

Shell_Malaysia_Official_Online_Store_Screenshot

Shell Malaysia Trading has launched its first official Shell online store on e-commerce platform Lazada Malaysia.

The move is aimed to ensure the “genuine” Shell Helix motor oil more easily accessible to discerning car owners across Malaysia, said Shell Malaysia in a statement to A+M. The online store is also offering engine oil service packages at selected authorised workshops in the Klang Valley and Johor. They will also have access to product technical support on guidance for the respective Shell Helix motor oil types.

Car owners who purchase an engine oil service package from the online store will be contacted by the official Shell distributor to arrange their preferred service venue, date and time slot followed by a confirmation via SMS. In conjunction with the launch, shoppers will get an e-voucher from Lazada Malaysia worth up to RM30 for every purchase of Shell motor oil or oil service packages from 3 to 10 August 2017 on its online store.

Shell Lubricants executive director of Southeast Asia and Oceania, Troy Chapman said Malaysia was the first market in Southeast Asia to enable online purchase of genuine Shell Helix products and service packages from an official channel.

“Today, we are proud to be the first oil and gas company in Malaysia to have an official presence on a leading e-commerce platform such as Lazada Malaysia. This initiative would help expand our market coverage and reach significantly and complement our extensive brick and mortar network in this country, which has been built over the past 125 years,” Chapman said.

Lazada Malaysia, chief executive officer Hans-Peter Ressel added, “This is a winning collaboration for Lazada and Shell that first and foremost, benefits the consumers as they now have unparalleled access to a wide range of official Shell Helix products via our platform. Brands such as Shell recognise the strategic importance of e-commerce in Southeast Asia and we look forward to working together with Shell in growing its online presence not just in Malaysia but across the region,” he said.

Source: marketing-interactive.com; 3 Aug 2017

Why mobile video is massive and other lessons from Mobile World Congress 2017

Forget 5G, connected cars, virtual reality and waterproof phones; the most important trend at Mobile World Congress was mobile video.

How do we know? Look at the keynote speakers: the top dogs from Turner, Vice, Netflix and Discovery were all in town.

On other stages numerous TV networks, media and social media companies, as well as the biggest brands, e.g. Shell, Red Bull and Lufthansa, were talking up mobile video.

Why are these media bosses doing keynotes in Barcelona? Partly they are looking for new distribution networks for their own video content, such as Netflix. But mostly they are wooing brands to the lucrative branded/sponsored video market.

If video is the new mobile (Facebook CEO Zuckerberg told shareholders in February 2017 that the company was going “video-first” because “video is a megatrend on the same order as mobile”), then mobile video is the giant honeypot.

And publishers, broadcasters, social media, content creators and creative/digital agencies are swarming all over it.

…The highlight of Shell’s multi-platform #makethefuture campaign is a music video entitled ‘Best Day of My Life’ that showcases six artists and six alternative energy ideas from young innovators, which has racked up 48 million views on YouTube in five months.

If branded content can achieve stats like that, it’s no wonder brands are falling in love with video.

Click here for full article

Source: clickz.com, 15 Mar 2017