GE Oil & Gas
Innovation Now
GE Oil & Gas Drilling & Production
LNG & Pipeline
Processing & Power Gen
• Close to our Customers … Over 1,000 customers in 115 countries • Technology Leadership … Broad and deep domain expertise • Reliable Partner … Fulfillment and After-Market Services
Solving the industry‟s toughest challenges 2 GE Proprietary Information GE © 2010 – All Rights Reserved
Our Aspiration
We operate with an unyielding commitment to integrity.
We deliver value with a passion for quality in everything we do.
We protect our people & environment with a rigorous EHS culture.
3 GE Proprietary Information GE © 2010 – All Rights Reserved
4 GE Proprietary Information GE © 2010 – All Rights Reserved
5 GE Proprietary Information GE © 2010 – All Rights Reserved
Accelerating into a “multi polar” world Post- Crisis Contribution to global GDP growth
2009
2010-„14 China
RoW
China
RoW
India
India Developed economies
US
Source: IMF WEO October 2009 6 GE Proprietary Information GE © 2010 – All Rights Reserved
Oil & Gas demand recovery to come from “emerging economies” Oil & Gas „10-„20 consumption growth
(Mboe/d) OECD
3.7
Pre salt Brazil Subsea booming
Non-OECD
5.2
2.4
China
Middle East
India
1.0
Asia
Europe
0.9
Latin America
0.1 Russia/Caspian
-0.1 North America
0.7
Africa
1.8
Source: IEA World Energy Outlook 2009 7 GE Proprietary Information GE © 2010 – All Rights Reserved
China & India demographics will drive oil demand growth ... 2020 Passenger car fleet
Passenger car oil consumption
(millions)
(million barrel / day)
124
4.1
225
7.4
2.1 64
China + India will consume Saudi Arabia production Source: Economist Intelligence Unit 8 GE Proprietary Information GE © 2010 – All Rights Reserved
Challenge to meet future oil demand … Projected oil depletion @ 5%/yr Million barrels of oil per day (Mbbl/d)
120
44 Mbbl/d 100
New additions 60
Existing production
20 „10
„12
„14
„16
„18
„20
5x Saudi Arabia to meet projected demand Source: IEA World Energy Outlook 2009 9 GE Proprietary Information GE © 2010 – All Rights Reserved
Time for gas ... Big role to play
Now 2020
Electricity driving gas demand
292 GW/y power additions in ‟10-‟20
Oil 4%
Renewable
Nuclear
38% Natural Gas
30% 5%
23% Coal
Cleaner fuels taking the lead as preferred source 10 Source: GE Energy Fuel COE, IEA GE Proprietary Information GE © 2010 – All Rights Reserved
Strong growth for gas as “bridge” fuel Projected gas depletion @ 8%/yr Billion cubic meters of gas per year (Bcm/y)
2,300 Bcm/y
New additions
Existing production
4x Russia to meet projected demand Source: IEA World Energy Outlook 2009 11 GE Proprietary Information GE © 2010 – All Rights Reserved
Many challenges to overcome … Subsea processing
Sour & Acid gas Getting more from existing reservoirs Reducing CO2 emissions Lighter products from heavier crude
Monetize stranded resources 12 GE Proprietary Information GE © 2010 2009 – All Rights Reserved
Innovation is key to meet the industry challenges 13 GE Proprietary Information GE © 2010 2009 – All Rights Reserved
14 GE Proprietary Information GE © 2010 – All Rights Reserved
Develop strong industry partnerships and customer intimacy StatoilHydro
1st subsea compressor Blue-C™
Validating a 12 MW subsea compressor for Ormen Lange
Qatar Petroleum
1st full NACE compliant magnetic bearing
Proved new turboexpander technology in less than 1 year
Enel
1st gas turbine fueled 100% by hydrogen
Developed a hydrogen gas turbine combustor
Total
Integrated Compressor Line ICL
Qualified 1st prototype … 16 units being installed by operators across Europe
Incubating the future with you
15 GE Proprietary Information GE © 2010 – All Rights Reserved
Ensure domain expertise to understand the problem clearly 2,400 professional engineers around the world
Science Disciplines: • Combustion • Composite Materials • Advanced Sensors • CFD • Power Density
Products Disciplines: • Drilling Systems • Subsea Trees • Rotating Machinery • Electrification & controls • Pipeline inspection tools
Systems Disciplines: • Drilling Operations • Flow Assurance • LNG • Pipeline • Refineries
Plus access to GE‟s Global Research network 16 GE Proprietary Information GE © 2010 – All Rights Reserved
Leverage technology from sister industries Power Crystal TM • Increasing Power & Efficiency
Aviation
Transportation
Healthcare
Multiphase Pumping • High delta P capability & erosion resistance
Remote Monitoring & Diagnostics • High accuracy sensors
Access to GE “stores”
17 GE Proprietary Information GE © 2010 – All Rights Reserved
Prototype and test to prove the concept Laboratories
Prototype
Thorough characterization of underlying physics
Test to failure in a controlled environment
Full scale test
Troubleshoot before installation at site
Largest and most complete testing capability in the industry 18 GE Proprietary Information GE © 2010 – All Rights Reserved
Execute with rigor and discipline NTI & NPI tollgate processes
SemStar5 … subsea control system 110 go/no-go decisions in „09 • Discipline and rigor
• Design for reliability … open protocol RM&D out of the box
• Shorter build cycle … more inherent redundancy
ORegen … waste heat recovery system Design for Six Sigma
Chief Engineers Office
Engineering quality program
• Data driven design
• Power efficiency statistical analysis … managing performance uncertainty • Design for operability and cost
Product design reviews ... NPI excellence Technology controllership
• Reliability and safety focus
• Depth and experience
• Issue resolution … reactor welding, LNG train torsional behavior
A structured approach to innovation 19 GE Proprietary Information GE © 2010 – All Rights Reserved
5 principles of reliable innovation Develop strong industry partnerships and customer intimacy Ensure domain expertise to understand the problem clearly Leverage technology from sister industries
Prototype and test to prove the concept Execute with rigor and discipline
Mitigating the risk of serial #1 20 GE Proprietary Information GE © 2010 – All Rights Reserved
Technology leadership ($ in millions)
R&D Spending
Technology Focus Compact High Efficiency Compression $500+ Subsea Power & Processing
Environmental Technologies & Upgrades
Electrification
Plus … Leveraging $50B GE investment over this decade 21 GE Proprietary Information GE © 2010 – All Rights Reserved
Coming soon Power Density … High Pressure Ratio Compression
Complete Portfolio for Subsea Production
ICL 2 and Variable Frequency Driver
22 GE Proprietary Information GE © 2010 – All Rights Reserved
Creating an ecomagination portfolio Upgrades for Fr5
Integrated compressor line
Lower NOx emissions even at partial load
Sealless design for zero leakage
High pressure compressors
Waste heat recovery
Sour gas reinjection to increase production & reduce emissions
ORegen organic rankine cycle & hot gas expander
Reducing pipeline failures
PGT25+ & G4 DLE turbines
UltraScanTM Duo: crack detection & wall measurement in single run
Best in class efficiency: reduced CO2 emissions per MW of power
23 GE Proprietary Information GE © 2010 – All Rights Reserved
Closer to customers ... Expanding Service Center network
More local resources … ~80% localized Expanding our footprint through partnerships & JVs
Al Shaheen ALGESCO
Sapura
Tamimi
REPHolding
SBW
Regional presence … local decision making 24 GE Proprietary Information GE © 2010 – All Rights Reserved
Sharing our knowledge with you Session T
• Deep dive with customers into emerging application needs
Oil & Gas University
• Aimed at emerging talent in oil & gas companies around the world
• 4 disciplines … Leadership, Energy, Oil & • Programs to jointly incubate new gas processes, Rotating machinery technology … - Gas Turbine fuel flexibility • Now localized … Abu Dhabi x2, Doha, - CO2 compression Algeria next - Subsea transmission & distribution
25 GE Proprietary Information GE © 2010 – All Rights Reserved
Reliable partner ... Invest
Train
+ • Global footprint • Single ERP platform in „11
Improve
+
• Quality … investments in training
• New CAM automation
• Inspection … Ultrasonics seeing 20x less defects • Domain knowledge in new technologies
26 GE Proprietary Information GE © 2010 – All Rights Reserved
Increased availability & performance Faster site response
Riser inspection
Knowledge services
Modular Approach
Leveraging ultrasonics
iCenter
• On-site module exchange … Outage time
• On-site application to reduce inspection time
• Early anomaly detection, notification & resolution
• Spare engine always available … Reliability
• Avoid transportation to land / shore facility
• Performance optimization … Upgrades feasibility
availability
Cycle Time reduction
Fleet availability
27 GE Proprietary Information GE © 2010 – All Rights Reserved
Innovation Now • In today‟s reset world, our industry needs Innovation Now • Innovation can be safe & reliable • Industry cooperation and domain knowledge are key to success
28 GE Proprietary Information GE © 2010 2009 – All Rights Reserved
GE Oil & Gas Drilling & Production
LNG & Pipeline
Processing & Power Gen
• Close to our Customers … Over 1,000 customers in 115 countries • Technology Leadership … Broad and deep domain expertise • Reliable Partner … Fulfillment and After-Market Services
Solving the industry‟s toughest challenges 2 GE Proprietary Information GE © 2010 – All Rights Reserved
Our Aspiration
We operate with an unyielding commitment to integrity.
We deliver value with a passion for quality in everything we do.
We protect our people & environment with a rigorous EHS culture.
3 GE Proprietary Information GE © 2010 – All Rights Reserved
4 GE Proprietary Information GE © 2010 – All Rights Reserved
5 GE Proprietary Information GE © 2010 – All Rights Reserved
Accelerating into a “multi polar” world Post- Crisis Contribution to global GDP growth
2009
2010-„14 China
RoW
China
RoW
India
India Developed economies
US
Source: IMF WEO October 2009 6 GE Proprietary Information GE © 2010 – All Rights Reserved
Oil & Gas demand recovery to come from “emerging economies” Oil & Gas „10-„20 consumption growth
(Mboe/d) OECD
3.7
Pre salt Brazil Subsea booming
Non-OECD
5.2
2.4
China
Middle East
India
1.0
Asia
Europe
0.9
Latin America
0.1 Russia/Caspian
-0.1 North America
0.7
Africa
1.8
Source: IEA World Energy Outlook 2009 7 GE Proprietary Information GE © 2010 – All Rights Reserved
China & India demographics will drive oil demand growth ... 2020 Passenger car fleet
Passenger car oil consumption
(millions)
(million barrel / day)
124
4.1
225
7.4
2.1 64
China + India will consume Saudi Arabia production Source: Economist Intelligence Unit 8 GE Proprietary Information GE © 2010 – All Rights Reserved
Challenge to meet future oil demand … Projected oil depletion @ 5%/yr Million barrels of oil per day (Mbbl/d)
120
44 Mbbl/d 100
New additions 60
Existing production
20 „10
„12
„14
„16
„18
„20
5x Saudi Arabia to meet projected demand Source: IEA World Energy Outlook 2009 9 GE Proprietary Information GE © 2010 – All Rights Reserved
Time for gas ... Big role to play
Now 2020
Electricity driving gas demand
292 GW/y power additions in ‟10-‟20
Oil 4%
Renewable
Nuclear
38% Natural Gas
30% 5%
23% Coal
Cleaner fuels taking the lead as preferred source 10 Source: GE Energy Fuel COE, IEA GE Proprietary Information GE © 2010 – All Rights Reserved
Strong growth for gas as “bridge” fuel Projected gas depletion @ 8%/yr Billion cubic meters of gas per year (Bcm/y)
2,300 Bcm/y
New additions
Existing production
4x Russia to meet projected demand Source: IEA World Energy Outlook 2009 11 GE Proprietary Information GE © 2010 – All Rights Reserved
Many challenges to overcome … Subsea processing
Sour & Acid gas Getting more from existing reservoirs Reducing CO2 emissions Lighter products from heavier crude
Monetize stranded resources 12 GE Proprietary Information GE © 2010 2009 – All Rights Reserved
Innovation is key to meet the industry challenges 13 GE Proprietary Information GE © 2010 2009 – All Rights Reserved
14 GE Proprietary Information GE © 2010 – All Rights Reserved
Develop strong industry partnerships and customer intimacy StatoilHydro
1st subsea compressor Blue-C™
Validating a 12 MW subsea compressor for Ormen Lange
Qatar Petroleum
1st full NACE compliant magnetic bearing
Proved new turboexpander technology in less than 1 year
Enel
1st gas turbine fueled 100% by hydrogen
Developed a hydrogen gas turbine combustor
Total
Integrated Compressor Line ICL
Qualified 1st prototype … 16 units being installed by operators across Europe
Incubating the future with you
15 GE Proprietary Information GE © 2010 – All Rights Reserved
Ensure domain expertise to understand the problem clearly 2,400 professional engineers around the world
Science Disciplines: • Combustion • Composite Materials • Advanced Sensors • CFD • Power Density
Products Disciplines: • Drilling Systems • Subsea Trees • Rotating Machinery • Electrification & controls • Pipeline inspection tools
Systems Disciplines: • Drilling Operations • Flow Assurance • LNG • Pipeline • Refineries
Plus access to GE‟s Global Research network 16 GE Proprietary Information GE © 2010 – All Rights Reserved
Leverage technology from sister industries Power Crystal TM • Increasing Power & Efficiency
Aviation
Transportation
Healthcare
Multiphase Pumping • High delta P capability & erosion resistance
Remote Monitoring & Diagnostics • High accuracy sensors
Access to GE “stores”
17 GE Proprietary Information GE © 2010 – All Rights Reserved
Prototype and test to prove the concept Laboratories
Prototype
Thorough characterization of underlying physics
Test to failure in a controlled environment
Full scale test
Troubleshoot before installation at site
Largest and most complete testing capability in the industry 18 GE Proprietary Information GE © 2010 – All Rights Reserved
Execute with rigor and discipline NTI & NPI tollgate processes
SemStar5 … subsea control system 110 go/no-go decisions in „09 • Discipline and rigor
• Design for reliability … open protocol RM&D out of the box
• Shorter build cycle … more inherent redundancy
ORegen … waste heat recovery system Design for Six Sigma
Chief Engineers Office
Engineering quality program
• Data driven design
• Power efficiency statistical analysis … managing performance uncertainty • Design for operability and cost
Product design reviews ... NPI excellence Technology controllership
• Reliability and safety focus
• Depth and experience
• Issue resolution … reactor welding, LNG train torsional behavior
A structured approach to innovation 19 GE Proprietary Information GE © 2010 – All Rights Reserved
5 principles of reliable innovation Develop strong industry partnerships and customer intimacy Ensure domain expertise to understand the problem clearly Leverage technology from sister industries
Prototype and test to prove the concept Execute with rigor and discipline
Mitigating the risk of serial #1 20 GE Proprietary Information GE © 2010 – All Rights Reserved
Technology leadership ($ in millions)
R&D Spending
Technology Focus Compact High Efficiency Compression $500+ Subsea Power & Processing
Environmental Technologies & Upgrades
Electrification
Plus … Leveraging $50B GE investment over this decade 21 GE Proprietary Information GE © 2010 – All Rights Reserved
Coming soon Power Density … High Pressure Ratio Compression
Complete Portfolio for Subsea Production
ICL 2 and Variable Frequency Driver
22 GE Proprietary Information GE © 2010 – All Rights Reserved
Creating an ecomagination portfolio Upgrades for Fr5
Integrated compressor line
Lower NOx emissions even at partial load
Sealless design for zero leakage
High pressure compressors
Waste heat recovery
Sour gas reinjection to increase production & reduce emissions
ORegen organic rankine cycle & hot gas expander
Reducing pipeline failures
PGT25+ & G4 DLE turbines
UltraScanTM Duo: crack detection & wall measurement in single run
Best in class efficiency: reduced CO2 emissions per MW of power
23 GE Proprietary Information GE © 2010 – All Rights Reserved
Closer to customers ... Expanding Service Center network
More local resources … ~80% localized Expanding our footprint through partnerships & JVs
Al Shaheen ALGESCO
Sapura
Tamimi
REPHolding
SBW
Regional presence … local decision making 24 GE Proprietary Information GE © 2010 – All Rights Reserved
Sharing our knowledge with you Session T
• Deep dive with customers into emerging application needs
Oil & Gas University
• Aimed at emerging talent in oil & gas companies around the world
• 4 disciplines … Leadership, Energy, Oil & • Programs to jointly incubate new gas processes, Rotating machinery technology … - Gas Turbine fuel flexibility • Now localized … Abu Dhabi x2, Doha, - CO2 compression Algeria next - Subsea transmission & distribution
25 GE Proprietary Information GE © 2010 – All Rights Reserved
Reliable partner ... Invest
Train
+ • Global footprint • Single ERP platform in „11
Improve
+
• Quality … investments in training
• New CAM automation
• Inspection … Ultrasonics seeing 20x less defects • Domain knowledge in new technologies
26 GE Proprietary Information GE © 2010 – All Rights Reserved
Increased availability & performance Faster site response
Riser inspection
Knowledge services
Modular Approach
Leveraging ultrasonics
iCenter
• On-site module exchange … Outage time
• On-site application to reduce inspection time
• Early anomaly detection, notification & resolution
• Spare engine always available … Reliability
• Avoid transportation to land / shore facility
• Performance optimization … Upgrades feasibility
availability
Cycle Time reduction
Fleet availability
27 GE Proprietary Information GE © 2010 – All Rights Reserved
Innovation Now • In today‟s reset world, our industry needs Innovation Now • Innovation can be safe & reliable • Industry cooperation and domain knowledge are key to success
28 GE Proprietary Information GE © 2010 2009 – All Rights Reserved
