So I am delighted to have the opportunity to welcome John and introduce him to you this evening. John.Paul, thank you for that and Tom thank you for having me here. Ladies and gentleman Iwould really love the opportunity to talk to you about something near and dear. Andthat's energy security and whether we can achieve it or not. Let me define it first, energysecurity for the purposes of this evening's conversation is energy that is available andaffordable not just for this generation and the next generation, but for every generation wecan imagine as far into the future as we can think about. That's our operative definitionfor energy security for this evening's discussion, available and affordable energy for thefuture as far as we can imagine the future to be, which could be a very long time.Why are on this 50 city visitation, there is a story behind it. The story that's behind it isthe to say that politely, the angst that occurred beginning in the fall of 2005 followed bythe anger which occurred in 2006 and the sustained issue of extraordinarily high pricesfor retail products oil products and the sustained high crude oil price which tends todrive those high gasoline prices and the inability of consumers, political leaders, oilcompanies and every other stake holder we can think of to come to grips with this,because who is right, who is responsible and who can do something about it. But in theface of it all, when I got the letter from a customer that showed me hanging from agallows, I knew that something had to be done. We looked at ground at the competitionand what the competition were doing in terms of communicating their messages, welooked at our past and we looked around the world, and how does shall communicate indifferent markets around the world. And we came to a conclusion that all the advertisingin the world would probably not change a single opinion about who we are and what wedo because you don't have time in a 30 second or a even 60 second ad to get your storyacross other than throw some nice music at people. Some nice images is and perhaps afew words which we are all saturated with anyway anyone who watches television orlistens to the radio or reads the newspaper.And so as the leadership team and I were sitting around last March, we talked about thisand the angst and the anger and we could see even the likelihood of higher prices on thehorizon in April and May because across much of the country we were going to phase outMTBE because of a congressional decision, and move in ethanol which was in very shortsupply and still is, by the way. And that was probably going to have an impact on furtherraising the prices, because MTBE was going out of the system, ethanol coming into thesystem because of Federal Law. And people would not know that. So we said why don'twe go talk to the people.We have six million customers a day come to shell station in Jiffy Lube stores. Why don'twe go talk to the people who buy our products? Let's talk to the leaders of communitiesin which our retail outlets are operating. Let's talk to the elected officials in communitieswhere legislators are considering issues around oil companies. And let's consider it in thecontext of energy security because at any price what we need to protect are the twofundamental deliverables of energy. One of those deliverables is the essence on whicheconomies are built. We can't build our economic base without energy. Whether that's anindustrial base looking at how factories are run for example or looking at theinformation era base in which information age relies on energy as its core element inorder for things to work electronically.In fact a few weeks ago we were in Seattle, and I had the opportunity to meet a couple ofsenior executives from Microsoft, about their energy security at Microsoft. And they saidwe are getting ready to build across the North West six new information centers basedupon the projection of economic growth of our company. But if we are going to buildthese six information centers between Washington and Oregon we need the equivalent ofa 350 megawatt new power plant just for these six information centers. That's a lot ofenergy to drive the internet, to drive the servers which will help customers of Microsoftdo what they do over the Microsoft internet system. The second critical aspect of energyin addition to the economic base on which our economy is predicated, is our lifestyle. Thelifestyle we live, the comfort on a cold winter morning or a hot summer day, the ability togo where we choose to go, when we choose to go there with our personal mobility at ourcall and discretion. The desire or the thrill of a holiday, taking off on the plane to theCaribbean this time a year, not a bad place to go, the lifestyle we choose is very muchdependent upon that energy. So what about energy security? Well the last 50 years were pretty good.We can all look back over the last 50 years or 60 years post World War II and we cansay "we have had a good run on energy security". Energy was available and it wasaffordable, remember gasoline for $19.9 or $25.9 a gallon. Some probably do, it wasaffordable. Electricity rates of $0.3-$0.4, a kilowatt-hour. Those prices used to exist. Thelast 50 years were good for energy security but they created a dilemma. We fell in lovewith cheap energy. And it was wonderful. But what about the next 50 years? Where dowe go for the next 50 years of supply and still deliver available and affordable energywhen many of the older oil fields of this country the North Sea in Europe and so manyof the oil fields that we have been accustomed to being to having access to, are indecline. For example the major oil field in Mexico was dropping at the rate of 10 percentper year. And accelerating in its decline. We are getting three million barrels a day fromMexico. But they will soon become an importing nation, just to meet their own needs andmeet their external contracts. The next 50 years will be the test of energy security, butthere is some good news. The good news ladies and gentlemen is there is all the energy tobe had that we want if public policy will enable it. Let's start with conventional oil and gas.In this country alone more than a 100 billion barrels of known available oil and gas inthe outer continental shelf and on federal lands that we know exists. But we can't getaccess to it. If we could get access to it, that's a 100 billion barrels. That's 30 some yearsof additional production of oil and gas to meet the needs the sustained needs of justAmerica. In addition to that there is more than a trillion barrels around the world of knownconventional oil and gas. Where we know where it is, we know how to get it out of theof the ground and we can meet the needs of the future with that trillion barrels except thatmore and more our country becomes dependent upon imports. Some of those importscoming from politically unstable parts of the world, where the insecurity of the stabilitydrives the price of oil making it unaffordable. And the continue demand for oil willproduce today about 85 millions barrels around the world, the world will use just about85 million barrels. So the supply demand equilibrium is just there.We can't take much disequilibrium without the price spiking. So we watch continuouslytraders do too, over unrest, upset, possible disruptions in that equilibrium and that makesoil more expensive, because of the nervousness of the trading market place. But if the USproduced its 100 million barrels, if we continue to rely on the trillion barrels from theother parts of the world, does that deliver energy security. Well we don't controlinternational politics, we think it doesn't. So there is some good news on top of that. Ifwe look at unconventional oil and gas there is even more of that than there isconventional oil and gas. The oil sands of Alberta probably a trillion barrels of it, theOil Shale of Colorado, probably a trillion barrels in Colorado, the heavy oil of Venezuela,probably a trillion barrels in Venezuela, there is three trillion barrels just in thishemisphere. That's a lot of oil.Now technologically difficult to to acquire, for example, oil shale, Shell has had aresearch project going for nearly twenty years in the Colorado Oil Shale and we are stillnot ready to make an investment decision on whether we can develop that in acommercial way and meet the environmental responsibilities that would be important tous. But we are continuing the research and we will see how that develops. In Canada theCanadian government made a strategic decision as a nation to develop the oil sands ofCanada, and Shell Canada, a listed company in Canada is producing about 150,000barrels a day and is positioned to double that over the next few years with a majorinvestment project, difficult and complicated but doable. The heavy oil of Venezuela,well we have seen in recent weeks, the Oronoco Basin has been now nationalized by thegovernment of Venezuela and the companies that in the Oronoco are really questioninghow they proceed. Some of them don't know yet. So that's an area of internationaltension, we will see how that develops. But if we develop the conventional oil and gasand we develop the unconventional oil and gas, do we have energy security now?At Shell we think the answer is no. We think there is more to do, particularly in the areaof liquefied natural gas. The good news is in this world we have a lot of gas and lot ofthat gas is a long way away from markets. In other words there are huge gas fields of thenorth-west shelf north-west shelf of Australia. Huge gas fields in Nigeria, huge gasfields in Russia, where there is no market for that gas, that gas can be liquefied by coolingit to some 260 degrees Fahrenheit negative 260 degrees negative and the gas becomesliquid. The liquid can be transported by ship. The ships can deliver that gas that liquidto a re-gasification terminal on a coast of this country and can augment the gas supply.That's important in this country because if you do the demand-supply curves lookingforward over the next 10 years, because we like natural gas so well. Utilities haveconverted to integrated gas turbine electricity production, very efficient and very clean;the demand growth for natural gas in this country exceeds the supply over the next 10years by quite a number, which will do what? It will raise the price of gas, unlesssomething is done. Liquefied natural gas becomes the way augmenting the natural gassupply from the ground by bringing this LNG from other markets in to the US markets.Shell has participating rights in a re-gas terminal in Maryland and a re-gas terminal inGeorgia, gas terminals in Mexico one in Baja, one in Alta Mira and we're proposingto put a gas terminal, with a partner, here in the Long Island Sound, called Broadwater.This liquefied natural gas becomes an augmentation to the energy supply, so does that,then, deliver energy security? Not yet. We move to a different energy supply coal. Thisnation has more coal than the whole rest of the world put together. We have coal forhundreds and hundreds of years. But coal as we know as old coal, is dirty coal. So is theresomething called clean coal? The cynics would say, "No." The scientists would say,"Yes." Clean coal, IGCC Integrated Gas Combined Cycle coal gasification doesn't burncoal, it gasifies coal. I'm not an engineer but let me try to explain the technology. If youtook pulverized coal, which is normally burned to produce heat, which makes steam,which makes electricity instead, take that pulverized coal and reduce it even further intowhat looks like talcum powder. Imagine that coal reduced to the quality of material thatis the same as talcum powder, dried completely. Take that dried talcum powder coal andenter it into a Shell gasifier at 2,600 degrees Fahrenheit at over 1,000 PSI pounds persquare inch and watch that molecule just explode. Basically destroys the molecule, whichcreates hydrogen and then can become the same as natural gas. We call it syn gas, so itturns coal into gas and that gas then goes into the Integrated Gas Combined Cycle turbineand creates electricity.What about the CO2? Well, there's ways to manage the CO2 coming through the gasifierbecause it has technology which enables you to capture the CO2 instead of it going up thesmokestack. And that can then be managed some ways. In some cases it can be used ingreenhouses. We do that in the Netherlands today, with CO2 coming out of one of ourrefineries in the Netherlands. It can be sequestered. The technology around sequestrationis evolving. It's not solid science yet, but it's hopeful and we need more experimentationand more research, but sequestration of CO2 is a distinct possibility.So now we have it conventional oil and gas, unconventional oil and gas, liquefiednatural gas and gasification of coal. Does that deliver our energy security for the future?No, not yet. There's more. Shell has been at the biofuels game for more than 30 years.We're the world's largest distributor of biofuels, biodiesel, ethanol. We believe there isroom in this marketplace lots of room in this marketplace for second generationethanol. That's rather than ethanol from corn or sugar cane we believe ethanol frombiomass, that is the corn stalk, rather than the corn kernel, through cellulosic breakdownis a better option than ethanol from food-based products. The reason obviously, two-fold.One, the environmental effect from a CO2 standpoint of using corn based ethanol isn'tmuch different than gasoline. On a comparative basis cellulosic ethanol is a much cleanerfuel in terms of its burn. Secondly, it doesn't affect the food chain. The corn that goesinto the fuel could otherwise go into chicken feed or other kinds of of tortillas orDoritos or whatever we use corn in Coca-Cola for example, high fructose corn syrup.So rather than compete with the food chain, Shell's view is let's go with the cellulosicethanol using additional research and development to produce massive quantities ofsecond generation ethanol rather than first generation. Now, we're distributing firstgeneration because that's what is available today. But let's work on the next generation sothat we can provide up to 10 percent of the fuel supply. And once we get to 10 percentlet's see where we go from there.So, biofuels but, in addition, there's solar energy. Shell has been at solar energy for overa decade. We recently made a technical decision to move away from silicone basedphotovoltaic cell production to move toward what we call thin film cell production,which is a copper indium diselenide base, which is lighter and produces more electricityper panel than silicone ever would. And therefore, we're shifting gears as we go movingto a new generation of technology for solar photovoltaic production of panels.In addition to that is wind. If you happen to see today's Wall Street Journal, front page,article on Shell wind in West Texas it really blows out there. In fact this country has alot of wind many ways to interpret that but we have a lot of wind in this country.We'd like to capture that wind and we're talking a 1,000-turbine wind farm in WestTexas huge project, the biggest one we ever would have tackled. But we already havewind farms in seven states. We're working on a new wind farm in Maui. We just startedconstruction on a big wind farm in Storm Mount in West Virginia. Wind is a viableenergy source as a supplement. The problem with wind energy is that wind doesn'talways blow. And so you have to have something else because wind doesn't make it all the time.But in addition to wind energy something we're very excited about as well is hydrogenfuel cell technology. Hydrogen fuel cells can be developed for two kinds of power oneis stationary power and the other is mobile power. In Washington DC today, you can goto a Shell station on Benning Road, three miles from the nation's Capital, and fill yourhydrogen fuel cell vehicle with hydrogen, from a regular Shell pump, designedspecifically for hydrogen dispensation - dispensing. We had the President of the UnitedStates there about a year and a half ago. He loved it. And he saw the hydrogen fuel cellvehicle being re-fueled. How dangerous is it if you put the President of the United Statesright next to the hydrogen pump? Secret Service said, "Okay. No problem." And, it'ssafe. It's perfectly safe. And so is the storage and so is the use of the hydrogen in the car.The difficulty right now for consumers like you and me is that cars are very expensive.They are really not being produced at scale to where citizens could afford them. But, 10,15, 25, 30 years from now, that will be different and we believe hydrogen fuel cellvehicles will take their place alongside internal combustion and diesel mobility vehiclesand it will supplement the fleet and may one day dominate the fleet. Who knows?But there is an issue with hydrogen fuel cell vehicles. In fact, there are two issues. One ishow much hydrogen can you store in a car because of the weight of the storage devices inwhich the hydrogen is kept. And what we need to get to is about a 300 mile-per tank-fullhydrogen fuel fill. That's a challenge we haven't mastered, yet. Second is where are yougoing to buy your hydrogen? What we have to do is build a hydrogen system ofdistribution and dispensing, which we hope to use our retail Shell network in order to dothat. But to put a hydrogen storage tank in a Shell station requires regulations in acommunity that will support the storage of hydrogen in your local Shell station.I was talking to Senator Clinton a little bit ago about a hydrogen station in her basicallyin her backyard in New York and she said, "Oh I love the idea. How can I help?" And Isaid, "Well there isn't anything you can do Senator, but we're having real problems". Theproblem is the city does not have a regulation that ever envisioned hydrogen storage inthis city. So we have to go to the rule writing process, to write a rule which City Councilwill then have to pass if we're going to get hydrogen stored in this station in your city.She said, "Oh. How long will that take?" I said, "Anywhere from a year to a year and ahalf." She said, "We can't go faster?" I said, "I'm sorry. I don't think we can." And shesaid, "Well, keep me posted." So, we are in the process of writing a rule that the city canconsider; the fire Marshall has to grant a permit. It's going to take time. How many citiesdo we have in this country? Think about that. Every village, every township, everycounty, every city tens of thousands of regulations will have to be written in the way inwhich we're organized. But nonetheless, hydrogen fuel cell, solar, wind, biofuel,conventional oil and gas, unconventional oil and gas, liquefied natural gas and clean coal.Are we there? Not yet.I know you're getting tired three more things from Shell's point-of-view. Number one,we cannot secure our energy future without simultaneously tackling the issue ofgreenhouse gas management. From Shell's point-of-view the debate is over ongreenhouse gas as a factor in global warming. We're not climatologists and we're notscientists that deal with nature in this manner. But when 90 percent of the world'sleadership and when the vast majority of scientists say there is an effect, who are we tochallenge that? So our view is officially, let's have government established framework ofrules and regulations in which markets can operate to affect the CO2 that enters theenvironment through the de-carbonization of fossil fuels. We support that. We've talkedto the top of Congress about it; we've talked - meeting Speaker Pelosi and we haven'ttalked to Carl Reed, yet, but we believe that something should be done at a national level.We know there are states interested in this as well. Shell is a company that operates in 50states. Do we subscribe to 50 different rule makings or should we have one national rulemaking? We believe it should be national and then global so that greenhouse gasmanagement is a part and parcel of energy security.Secondly, we believe that the same kind of framework needs to exist that is a rulesframework, sponsored by government, in which markets can operate to drive energyefficiency to much greater levels than we know today. We call it a Culture ofConservation, where the hearts and the minds of people, the hearts and minds of families,children, students are determined to do differently in the future than we have done in thepast, in terms of the use of energy and the manner in which products are designed fromcars to appliances to homes, the way in which energy is used in buildings, in factories, inall circumstances of life so that this Culture of Conservation at the behavioral level issupported by the framework in which markets can operate to make energy efficiency anattractive outcome in the marketplace of tomorrow, to where we can get far more valuefrom the molecule of energy than we do today.And thirdly education. Education of our children, education of our society, in whichpeople come to understand, where does energy come from? How is it produced? How is itdistributed? Why does it connect so intimately to our economy and our economic wellbeing? How do we preserve it? What is the social aspect of energy? All of the variousaspects of energy which we just assume people know. And to the regret of my companyand I think to the regret of the industry and actually to the regret of the American people,we really don't understand energy. We point fingers at one another. We point fingers atbig oil saying, "You guys, you just charge whatever you charge and you make whateveryou make and you screw those American people." When inside an energy company, whenwe lost the Gulf of Mexico seven times in 2005 to hurricanes and shut down productionseven times in 2005 just in the summer months, and with between Katrina and Rita welost 25 percent of the refining capacity in this country for not just days but weeks andmonths, months. Some refineries still aren't back up from Katrina and Rita that's over18 months ago. Inside the oil companies we're applauding our employees for their heroicsat doing what they did under awful conditions to get fuel to Americans who needed it, sothat anybody who needed to buy gas in the fall of 2005 could buy gas. So we'reapplauding our employees and we're getting killed by the politicians and our owncustomers because we don't understand each other's point of view.Consequently, you've privileged me tonight with the opportunity to share my views withyou. Thank you very much.