the importance of iot within shell’s digital agenda...shell global solutions international b.v....

Copyright of Shell Global Solutions International B.V. CONFIDENTIAL

The importance of IoT within Shell’s

Digital agenda

19/06/19

IT CTO Consultant, Emerging Digital

Technology

Yudi Xu

Copyright of Shell International

Definitions & cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal 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 Royal Dutch Shell plc and its subsidiaries in

general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used

in this presentation refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as

“joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for

convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) 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 “aim”, “ambition’, ‘‘anticipate’’,

‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ 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 regulatory measures addressing climate change; (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.

No assurance is provided that future dividend payments will match or exceed previous dividend payments. 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 risk factors that may affect future results are contained in

Royal Dutch Shell’s Form 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward-looking statements contained in

this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 19/06/19. Neither Royal Dutch Shell plc 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.

We may have used certain terms, such as resources, in this presentation that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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 www.sec.gov. 2

http://www.shell.com/investor

http://www.sec.gov/


PRO

Shell’s Strategy

3

Our PurposeWe power progress together by

providing more and cleaner energy

solutions

#makethefuture

Strategic Ambitions

World Class Investment Case

Thrive in the Energy Transition

Strong Societal Licence to

Operate

Aspired Portfolio

Cash

engines

Growth

priorities

Emerging

opportuniti

es

Winning Capabilities

Customer Centricity

Commercial Value Delivery

Technology

Commercialisation

Project Delivery

Operational Excellence

Underpinned by our Values, Goal Zero, and People


Shell business overview

Exploring for oil

and gas:

onshore

Exploring for oil

and gas:

offshore

01 Exploration

Producing

petrochemicals

Generating

power

Refining oil into

fuels and

lubricants

Converting gas

into liquid

products (GTL)

Upgrading

bitumen

Producing

biofuels

AviationRetail Lubricants Power

05 Sales and marketing

Customers

04 Transport and trading

Liquefying gas

by cooling

(LNG)

Shipping

and trading

Regasifying

(LNG)

Supply and

distribution

02 Development and extraction

Extracting

bitumen

Producing oil

and gas

Developing

fields

03 Manufacturing and energy production

4


To be discussed

❑ Shell Digital strategy.

❑ IOT.

❑ Drones & Robotics.

❑ Speech + AI.

❑ Shell and AI (ML / MV / NLP):

◼ Machine Learning for Predictive Maintenance.

◼ Machine Vision for Leak detection, etc.

◼ Natural Language Processing.

❑ Learnings.

5


Digital COE

❑ Includes:

❑ Digital Capabilities:

❑ AI: Data Scientists.

❑ Emerging Technologies capabilities.

❑ Design Thinking capabilities.

❑ Business Focal points.

❑ Of course close cooperation with IT:

❑ Making operational.

❑ Deployment.

❑ Etc.

6

Copyright of Shell International 7

◼ Semi

autonomous

interpretation

◼ Data centric

reservoir

modelling

Many initiatives

are underway…

Copyright of Shell Global Solutions International BV

… but there is much

more value to realise

◼ Data centric

engineering

and

construction

◼ Digital twin

◼ Predictive

maintenanc

e

◼ Proactive

monitoring/

reliability

◼ Remote

operations

◼ Real time

supply &

demand

balancing

◼ Smart

contracts

◼ Personalised

experience

◼ Retail site

of the future

◼ Digitise routine tasks

◼ Digitalise supply chain


Shell Digital agenda

❑ From our CEO: Energy Renewal and Digitalisation are the most important events we need to

tackle.

❑ Digitalisation is fully business driven whilst IT is supporting these activities.

❑ Every Digital activity has the following flow:

8

Apply Machine

Learning or Advanced

Analytical Methods


Digital is all about data

❑ Every Digital activity has the following flow:

IOT

• Drones

• Robotics

• Cameras

• Sensors

• Edge (IOT)

• Blockchain

• MS Azure

Data

Platform

• Digital

Realities

(VR/AR)

• Speech

• Chatbots

• Wearables

• SME

• Supported

by Digital

services

Apply Machine

Learning or Advanced

Analytical Methods

• ML=Machine Learning

• MV=Machine Vision

• NLP=Natural Language Processing

Shell Global Solutions International B.V.

Robotics today

Making an

impact across

Shell’s operations

Caged UAS Tank

Inspection

reduction of costs

Inspection of

subsea storage

UAS Inspections

Used Daily in Shell

BVLOS UAS

Mini ROV Robotic Compact

Manifold

Robotic Coating

RemovalExR-1

RESTRICTED 10


ExRobotics

◼ Explosion Certified Robots that live in a

facility

◼ Can perform regular walk arounds to

detect leaks and integrity issues

◼ ExR-1 first commercial robot being

deployed in NAM

◼ ExR-1.1was tested in Q3 2018 in Pernis

◼ Added autonomy and gas detection

◼ First robot deployed January 2019

11RESTRICTED


Unmanned Aerial Systems Overview

◼ UAS can rapidly scan a large area

◼ Performs a birds eye view walk around

◼ Complementary to ground based

robots as these are NOT ATEX

◼ Used regularly across the globe

◼ Asset Visualization

◼ Incident monitoring

◼ Security

◼ Construction 4D Models

◼ Tall Structure Inspection

12RESTRICTED

https://web.microsoftstream.com/video/a28c1e01-265a-48a8-a388-cc48519b53a0


BVLOS Surveillance

◼ Use of UAS to fly out of the human

operators visual line of sight

◼ First commercial deployment was in QGC,

saw a large increase in operator efficiency

while avoiding millions of km of road travel

◼ Currently replicating in Permian

◼ Shell was granted first BVLOS waiver by

FAA in October 2018

◼ Will have a bigger focus on analytics

13RESTRICTED


Asset Owned UAS

◼ Asset sets up an internal UAS program so flights can

be performed more often

◼ Inspections that could not be justified by contract

inspections are now viable

◼ Enables creation of up to date digital twins of assets

◼ Scotford, Deer Park, Norco, Rheinland have all

setup programs with Pernis, STCH and more looking

at setting up programs

14


AI (Machine Learning)

❑ Most mature.

❑ Python driven.

❑ Use cases across Shell.

❑ Focus at Predictive Maintenance:

❑ Initial most value there.

❑ Impacting availability of the assets: Refineries; Production; Chemicals Plants; etc.

❑ However as well several use cases elsewhere.

15


AI (Machine Vision)

❑ Open Source driven.

❑ Challenge to get sufficient data:

❑ Synthetic data.

❑ Developing very fast.

❑ Use cases across Shell:

❑ Retail.

❑ Corrosion detection

❑ Damage at plants.

16


AI (Natural Language Processing)

❑ Open Source driven.

❑ Least mature.

❑ Developing very fast.

❑ Use cases across Shell:

❑ Anywhere we have unstructured data.

17


Importance of data

❑ ML for Predictive Maintenance driven by Time series data (IOT release 1):

❑ Therefore not driven by latest IOT developments.

❑ Quality of data → However do not spent time on getting the data to a better quality before

starting to do anything;

❑ Of course over time data quality issues have to be addressed.

❑ Synthetic data becomes very important:

❑ Machine Vision.

❑ Etc.

18

Shell Global Solutions International B.V. RESTRICTED

Speech and AI

❑ Examples where deployed / tested:

❑ Control rooms:

❑ Selecting drawings out of 60,000.

❑ Ware houses:

❑ Validating the inventory

❑ Challenges:

❑ Noise

❑ Accents

Copyright of Shell International B.V. 20Copyright of Shell Global Solutions International B.V.

Predictive Maintenance

Pre-empting failure


Recharge Plus

Managed Smart Charging For Electric Vehicles


Machine Vision

Helping Shell Retail achieve Goal Zero


Rightsizing Inventory

Optimizing Spare Parts Usage

Copyright of Shell International B.V.

Shell Geodesic™

Algorithmic Geosteering

24Copyright of Shell Global Solutions International B.V.

Copyright of Shell International B.V.

GEOCRAWLER

AI Assistant For Interpreters

25Copyright of Shell Global Solutions International B.V.


Support it as a Service

Radar Scoping Active READY FOR PRODUCTION

FROM PROOF OF CONCEPT TO OPERATIONAL SERVICE


Learnings so far

❑ Opportunities are endless.

❑ Data is at the heart of everything → No surprise of course

❑ Focus at Open Source (components).

❑ Top down approach is important:

❑ Business support & deployments.

❑ Business and IT act as one → Value story.

❑ DevOps / Agile / etc. is important to increase speed.

27


One More Thing…

28


Open Sourced IoT-Device-Hub (soft launch)

29

VISIONEmpower the IoT with open resources

WHAT WE DID

We created a fully open sourced IoT device repository to bridge the gap between suppliers and customers.

Best place to find your IoT devices

MIT license and fully open sourced

Initiated by industry lead but owned by community

Iot-device-hub.github.io

the importance of iot within shell’s digital agenda...shell global solutions international b.v....

Documents