HigHligHts

gE Oil & gas

CONtENts

03 Welcome to AM2016Lorenzo Simonelli - President and CEO, gE Oil & gas

04 Navigating energy transitionKeisuke Sadamori - Director for Energy Markets and security

05 Value creation and partnership in a challenging business environmentHarry Brekelmans - Project & technology Director, shell

06 Views & Voices: transform today’s challenges into opportunitiesJohn Hickenlooper - governor, state of Colorado, UsA Jon Harris - EVP, Bg group Brian Salerno - Director, Bureau of safety and Environmental Enforcement Federica Guidi - italian Minister for Economic Development

07 Digital industrial transformationJeff R. Immelt - Chairman & CEO, gE

08 strategies for sustaining excellence in a challenging business environmentAhmad A. Al-Sa’adi - senior Vice President technical services, saudi Aramco

09 New centers of gravity in the oil and gas spaceRoberto Casula - Chief Development, Operations & technology Officer, ENi

Mark Gyetvay - CFO & Deputy Chairman of the Management Board, Novatek Jeff Reilly - President, strategy & Business Development, Amec Foster Wheeler Moderated by Mary Hackett - Regional Director ANZ & PNg and Operations leader, Asia Pacific, gE Oil & gas

10 staying focused in a complex worldJakob Thomasen - CEO, Maersk oil

11 Are you sure it’s only about costs?Thierry Pilenko - Chairman & Chief Executive Officer, technip

12 success throughout the cycleNeil Duffin - President, ExxonMobil Development Company

13 Delivering in an uncertain worldRod Duke - Chief Executive Officer, glNg Operations Pty ltd Jørgen Hallundbæk - President and CEO, Welltec Bernard Quoix - Vice President Rotating Equipment, total E&P Moderated by Rod Christie - CEO turbomachinery solutions, gE Oil & gas

14 Operations excellence: competitive advantage or industry imperative?Fawaz Bitar - Head of global Operations, BP

15 Value creation from technology and collaborationElisabeth Birkeland Kvalheim - Chief technology Officer, statoil

16 the digital transformationKen Oostman - Vice President of Engineering, Columbia Pipeline group Michael Utsler - Chief Operations Officer, Woodside Moderated by Stephen Prentice - VP & gartner Fellow, gartner

17 gE Digital: big data and analytics for industryBill Ruh - Chief Digital Officer, gE

18 technology sessions

19 thank YouLorenzo Simonelli

20 gallery

The world needs energy. And the demand will only grow. This offers great opportunities for GE to meet growing needs for building greater infrastructure, managing production and operations, and building higher quality solutions that not only last longer but that can also help predict potential risks and increase throughput.

In GE, we believe the answer for a secure future for our industry can be found in a place that some companies never consider. We believe in the productivity gain found in data, analytics, and software. The combination of software and machines has laid the foundation for a new wave of innovation — and the economic and environmental impact of industry and software cannot be understated. That’s why we at GE have been transforming into a digital industrial company.

We can’t do this alone. We see possibilities arising when companies come together in new ecosystems and partnerships to create more effective business and operating models. That is why we continue to bring together a broad array of leaders from all over the world, representing both governments and industry, during our Annual Meeting.

During our 17th edition, we engaged in some healthy debate around the opportunities and challenges facing our industry. The valuable insights that were shared set things in motion to drive the oil and gas industry forward — and fuel the future… together.

Welcome to AM2016Lorenzo SimonelliPresident and CEO, GE Oil & Gas

“We see new possibilities from the current volatile climate… to create new partnerships to innovate for more effective business, and to drive better productivity.”

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Navigating energy transitionKeisuke SadamoriDirector for Energy Markets and Security

The energy system transformation is underway. Policies sparking innovation are tipping the balance toward low-carbon sources of energy, however time is not on our side. In order to meet rising energy demand, the market needs more specific, ambitious targets and robust implementation. An emissions goal would give greater clarity and certainty to the energy sector, strengthening the case for R&D investment and technology transfer.

The world’s carbon budget is shrinking and renewables are becoming the largest source of new power generation capacity. Backed by continued policy support, renewables are expected to overtake coal to become the largest global power source by 2030. However, renewable growth is currently not enough to meet demand. Fortunately, growth can be accelerated to meet climate goals through enhanced domestic policies, such as the recent US decision to extend the renewable tax credit.

For oil and gas, innovation gains can be offset by the move to more complex fields without a regulatory framework in place and a stable, predictive policy support are needed to ensure investments in low-carbon technologies.

“Companies that do not anticipate stronger energy and climate policies risk being at a competitive disadvantage.”

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Value creation and partnership in a challenging business environmentHarry BrekelmansProject & Technology Director, Shell

Given the industry downturn, oil and gas companies should be collaborating with a united purpose to secure a sustainable, more efficient and competitive future for our industry.

Shell’s global Projects and Technology organization is focused on a robust improvement program that focuses on competitive scoping, more efficient project execution, and a technology and supply chain transformation.

The industry has before come together and dramatically improved our safety performance. Like with safety, we can come together on capital efficiency.

“We are in the midst of a renaissance in the oil and gas industry that urges to capture the spirit of the low-cost environment to reinvent ourselves. This conference captures the embodiment of the collaboration we need.”

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John HickenlooperGovernor, State of Colorado, USA

“Colorado is in many ways at the forefront of the current energy renaissance. We have been blessed with a variety of energy sources and our oil and gas industry is a vital part of our economy with 100,000 jobs and a $2 billion US annual revenue. Access to energy is together with education the single most important driver against poverty, so we are really committed to this industry.

We have accepted and recognized that we need to do everything we can to keep our air and water clean while creating this access. This cannot be done by the government alone. With our partners in what I call the golden triangle (government, non-profit and business at the local level), we are able to simplify regulations to establish sustainable growth.”

Jon HarrisEVP, BG Group

“Today, more than ever, we live in a VUCA world — a volatile, uncertain, complex and ambiguous world — where the speed of change is accelerating. Our industry has become too complex. It urges a new way of thinking, acting and leading. We need structural change, simplicity, and more digital advances. Artificial intelligence helps us understand when things are not working and optimize operations, like using drones for inspections and removing costs and human interface from the equation. For our industry to become economically viable again, we need to do things differently and as Thomas Edison said: ‘There is a way to do it better — find it’.”

Brian SalernoDirector, Bureau of Safety and Environmental Enforcement

“Most successful companies have recognized that safety is not a separate program. It is integral to how they do business. For example, in 2013, GE recalled a whole fleet of bolts in a swift and proactive decision by leadership, safeguarding many lives, protecting the environment and strengthening credibility.

Within the oil and gas industry, safety of operations puts pressure on a company’s social license to operate. To build public trust, businesses need to come together with regulators to determine industry-wide security programs.”

Federica GuidiItalian Minister for Economic Development

“We aim at promoting Italy’s manufacturing industry by leveraging on our innate skills as well as on ad-hoc policies that we are developing. Italy will not let the opportunity of Industry 4.0 go wasted: we want to take a primary role in the global move towards the so-called Fourth Industrial Revolution. And we want to help Italian businesses to understand and fully exploit the potential from the digitalization of industrial processes.

Energy demand is growing both in quantity and in quality. The world will demand more and more energy, which will have to be cleaner and cleaner. GE understood this and acted accordingly. GE technologies meet the highest quality standards: they are a great achievement of GE as well as proof of what ‘made in Italy’ means.”

Views & Voices: transform today’s challenges into opportunitiesViews and voices from across international governments and the private sector… all with the goal to transform today’s challenges into opportunities.

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Digital industrial transformationJeff R. ImmeltChairman & CEO, GE

GE knows how to lead and manage through cycles. In today’s oil and gas industry, evolution is a prerequisite, not only for meeting the world’s growing energy needs, but for discovering breakthrough advancements. It’s more important than ever for the oil and gas industry to innovate better ways of operating, especially when considering today’s market environment and the growing need for energy.

Digital will drive productivityGE utilizes technology and expertise from across its businesses. And with that, the goal is to lead the industry in analytics, powered by Predix™, GE’s Industrial Internet platform, to lead a new productivity revolution.

We are focused on simplification and our customerTo service customers more efficiently, GE is committed to making life easier, improving customer performance and improve delivery of services with the help of a localized global footprint.

Play for the long-runGE invests heavily in R&D, high-growth areas, including unconventional resources and subsea services, and key growth regions. We’ve done this before and seen it pay off for our industry partners in the Aviation sector.

“We drive enterprise advantages that benefit the entire company, through what we call the ‘GE Store.’ It means that every business in GE can share and access the same technology, markets, structure and intellect. The value of the GE Store is captured by faster growth at higher margins; it makes the totality of GE more competitive than the parts. No other company has the ability to transfer intellect and technology as GE can through the Store.”

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strategies for sustaining excellence in a challenging business environmentAhmad A. Al-Sa’adiSenior Vice President Technical Services, Saudi Aramco

Saudi Aramco intends to be the world’s leading integrated energy and chemicals company by 2020. With the help of an Accelerated Transformation Program, the company has optimized its capital efficiency with a New Capital Management System, invested in startups and other promising ventures, and started a digital and technology revolution “bringing data to the right people at the right time in the right context.” This is just a snapshot of the activities that are helping Saudi Aramco sustain excellence in a competitive, global business environment.

“Saudi Aramco and GE have been longstanding partners, and will continue to be. We are currently collaborating with GE to pilot their Smart Signal predictive maintenance technology for rotating equipment at one of our gas plants to enable proactive detection of failure of critical equipment, and to increase equipment availability and reduce maintenance costs. The future is bright.”

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New centers of gravity in the oil and gas spaceToday, many parts of the oil and gas industry, both geographically and sector-wise, are in flux. We work in a complex arena where oil price is lower than expected, and there is a gap between the price of oil and the cost of our activities. Despite high investments, many projects are being postponed or cancelled, but this is an opportunity to inject more efficiency into our system and restructure our way of working.

Costs make a big difference, and we will have to begin looking at project economics in a more rigorous way. Oil and gas companies should focus on long-term development projects and invest through cycles, though they may be compressed. Invest today to prevent a collapse in the future.

The oil and gas industry can use technology to shift to another center of gravity. Looking at ways we can improve our business, managing costs, and collaboration between IOCs and producing countries can deliver important results.

Panel DiscussionRoberto Casula Chief Development, Operations & Technology Officer, ENI

Mark Gyetvay CFO & Deputy Chairman of the Management Board, Novatek

Jeff Reilly President, Strategy & Business Development, Amec Foster Wheeler

Moderated by Mary Hackett, Regional Director ANZ & PNG and Operations Leader, Asia Pacific, GE Oil & Gas

“today, the true measure of a company is not how it deals in times of comfort and convenience, but how it deals in times of challenge.”Mark Gyetvay

“looking at our past as an indicator of the future, we need to address what the new norm—lower for longer—looks like this time.”Roberto Casula

“Usually we are slow adopters of new technology. Nobody wants to be first, everyone wants to be second, and no one wants to be third.”Jeff Reilly

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staying focused in a complex worldJakob ThomasenCEO, Maersk oil

How do you navigate a volatile and complex environment? For Maersk the answer is going against the trend in Exploration & Production, allowing the company to sustain financial performance, continue capital investments and position itself well for counter-cyclical, inorganic growth. By creating an optimal portfolio focused on growth opportunities that play to its strengths, and sanctioning mega projects (including the biggest planned project in the North Sea), Maersk is positioning itself for medium- and long-term growth, in a way that very few companies of its size are able to do.

“Our value chain is resting on technology, our people, and safety. We have also embarked on a robust cost-transformation program, right-sizing, simplifying and standardizing our organization. Cutting costs doesn’t mean we don’t want to grow, though. We are in a period of ambidextrous growth, and want to keep that momentum going.”

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Are you sure it’s only about costs?Thierry PilenkoChairman & Chief Executive Officer, Technip

The industry is facing the worst crisis ever, even worse than 1986. And it’s not only the declining oil price putting pressure on us. There are a number of elements that have increased costs over the years — it’s harder to get to the resources, we are spending double or triple man-hours per piece of equipment for quality assurance, inflation in salaries, regulations… all impacting the productivity in our industry significantly.

To slash our soaring costs, technology, innovation, standardization, and simplification are critical. But, as important is being able to collaborate with customers in the early stages of a project to make the right decisions, driven by safety and cost. In other words, anticipate, integrate and partner sooner… across the supply chain.

“In the short term, we may be able to cut cost by 10, 15 or even 20%. But, in reality, our customers and industry are asking for reductions of 30-40%. It is not just statistics or numbers, though. Change will be driven by behaviors and, just like we collaborated around driving new behaviors around safety, we can partner and do the same for cost.”

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success throughout the cycleNeil DuffinPresident, ExxonMobil Development Company

As an industry, we have done a great job developing technology when faced with new challenges. But, to be successful through the cycle, we need to focus on eliminating serious incidents, collaboration, standardization and maximizing value.

A ‘one-team’ approach, including both customers and suppliers, is critical. As projects become increasingly complex and non-routine, we must change behaviors and redefine the norms and benchmarks we are used to — because they are no longer economical in today’s environment.

To deliver results for the long term, the industry must learn to simplify, leverage collective expertise, and think differently. This includes avoiding customization and bespoke solutions, and embracing standardization, which will help us become quicker so we can move forward in tough times.

“Let’s agree that this industry is not sun-setting. We have opportunities throughout the value chain where a lot of interfaces happen within complex projects — many transitions that drive us to make mistakes. We can tackle this by up-front transparency so we can guarantee more seamless and faster transitions between operators, contractors, and sub-contractors.”

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Delivering in an uncertain worldThe panel discussed how we can keep the industry working through tough periods like the present, and focused on the importance of close relationships as a vital element. Panelists also agreed on the importance of not underestimating the effort that needs to be put into enforcing the right behaviors throughout the organization — something that is often taken too lightly.

It was highlighted that the search for perfect executional excellence and the implementation of compelling digital capabilities are pivotal for the sector’s sustained future. The moderator pointed out GE’s mantra of doing fewer things better with less — to be simpler, nimbler and faster, to navigate in volatile environments.

Panel DiscussionRod Duke Chief Executive Officer, GLNG Operations Pty Ltd.

Jørgen Hallundbæk President and CEO, Welltec

Bernard Quoix Vice President of Rotating Equipment, Total E&P

Moderated by Rod Christie, CEO Turbomachinery Solutions, GE Oil & Gas

“At $30 a barrel, tight partnerships with suppliers make a difference. in fact, they determine the difference between being in and out of business.”Rod Duke

“like we’re rigorously driving a culture of being incident-free, we need to deploy the same rigor on cost-conscious behaviors. it requires a real investment to get this right, but really pays off, and will set us up for a better future.”Bernard Quoix

“You can sit anywhere in the world to control our robots, do simulations and train people, while practicing and doing dry runs. Our approach is to specify our equipment so supply chains can become more effective.”Jørgen Hallundbæk

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Operations excellence: competitive advantage or industry imperative?Fawaz BitarHead of Global Operations, BP

To take the industry to the next level of operational excellence, it is time to take a more proactive approach to collaboration in areas of safety and standardization, while seizing opportunities presented by a new digital age.

Technology can revolutionize how we drill wells, how we optimize production, and how we detect and react to new information. BP is collaborating with GE on a pilot called ‘Plant Operations Advisor’ (also known as GE’s Unified Operations). This tool detects anomalies, brings all relevant data to a single screen to help troubleshoot and manage the case to resolution. This ‘big-data’ project is an example of the kinds of innovation that the industry needs to run assets more safely, reliably, and efficiently for today and tomorrow.

“Operational excellence is not just about competitive advantage. It is an industry imperative for meeting the challenges we all face in a new era of lower oil prices. In the last 5 years at BP, we have learned that, when you focus on the inputs to operational excellence, it generates a tangible uplift in performance.”

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Value creation from technology and collaborationElisabeth Birkeland KvalheimChief Technology Officer, Statoil

Statoil is determined to shape the future of energy, to find low-carbon and low-cost solutions in a world that’s changing from geopolitical, climate and market perspectives. Interestingly, Statoil has found that emissions-efficient oilfield solutions are, often, also the most economically viable.

Statoil and GE formed the Powering Collaboration partnership, which was an open challenge where people could suggest any innovations. Ideas coming from the challenge have already materialized into 20 projects that are looking for competitive and effective CO2 solutions.

While the current outlook may be gloomy, Statoil maintains its spending on R&D, with a firm belief that new ideas are crucial for transforming the industry.

“The old recipe for success is no longer working, and we need to take matters into our own hands. The best way to predict the future is to shape it.”

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the digital transformationThe future of data analytics and cognitive computing is today. Data is going to be the competitive key for individual organizations as well as the entire oil and gas industry. Using advanced technology will help us translate data into real operational solutions — getting ahead of failures, proactively identifying risks and mistakes, to deliver safer and more reliable services.

To ensure more efficient use of data and, ultimately, better decision-making, it is important for the industry to integrate systems, connect data engineers with data users, and collaborate across the industry to design a more open data architecture that increases learning.

Panel DiscussionKen Oostman Vice President of Engineering, Columbia Pipeline Group

Michael Utsler Chief Operations Officer, Woodside

Opened and moderated by Stephen Prentice, VP & Gartner Fellow, Gartner

“the drivers and gains speak for themselves. this is the world we live in — big data is integrated in everyday life. the public knows it, the regulators know it, we all know it. there is really no reason to not incorporate data into your organization.”Ken Oostman

“My advice to the industry is to be an informed buyer. Make sure your investment is connected to the problems you are trying to solve. And don’t be afraid to benchmark within or outside industry. Ask yourself: would our industry’s ‘good’ be ‘average’ or ‘great’ externally? let’s aim higher.”Michael Utsler

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gE Digital: big data and analytics for industryBill RuhChief Digital Officer, GE

Whether customers are upstream, midstream, downstream or integrated across the spectrum, GE offers data and analytic solutions that drive performance and optimization — at the equipment level, operations level, and even across the entire enterprise.

GE has evolved its business and digital offerings to match the needs of customers, partnering with them to embrace this digital revolution, and optimize the opportunity to make their businesses stronger. From giving operators a full view of their wells for improved operations and optimized production, to providing advanced monitoring solutions for plants, such as LNG, that provide insights to make them run better. Digital is the solution.

“We can meet our customers wherever they are in their digital journey, and we’re thrilled about driving this revolution. Some companies know heavy equipment. Some know data and software. Only we know how to combine them to transform industry.”

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technology sessionsAttendees chose from a variety of up-close and interactive breakouts covering some of the latest and most exciting solutions that GE Oil & Gas is developing for its customers and, ultimately, the industry as a whole. Two overarching themes were the unrivaled bredth of intelligence available through the GE Store, and the highly advanced digitization that GE is building into its machines to create an entirely new concept of industrial performance through data analytics.• Producing more with less: innovation in oilfield solutions

• Enabling subsea power and processing with technologies from the GE Store

• Enhancing FPSO capabilities and reliability

• Increasing efficiency in pipeline applications

• New technology developments driving success from downstream to demand-side operations

• Operational excellence driving a sustainable future in oil and gas

• Partnership for advanced performance: optimizing offshore drilling & production

• The Industrial Internet: powering the next oilfield revolution

• Creating simpler offshore turbomachinery solutions

• Optimizing LNG operations, large and small

“Pioneering technologies require significant investment and collaboration among industry participants.”Wendy LamGE Oil & Gas Subsea Power & Processing

“Our Digital twin capabilities make more efficient products available faster.”Paolo PecchiGE Oil & Gas Downstream Technology Solutions

“simplicity is not always easy… but it is necessary.”George BridgesGlobal Contract & Materials Manager, ExxonMobil

“We bring best practices from other industries to create real benefits across the oil and gas value chain.”Chuck ChauviereGE Oil & Gas Drilling Systems

“Optimized performance, increased productivity, and reduced cost… through digital, we’ll get there.”Ashley Haynes-GasparGE Oil & Gas Digital Solutions, Software & Services

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Thank you to everyone who helped make our 17th Annual Meeting one to remember, for sure. Collaboration was a theme that came up again and again, and the event itself was a glowing example — over 1,000 attendees, 24 speakers and panelists, the event team who organized it, and all the engineers and product specialists who ran the Solutions Fair.

At GE Oil & Gas, we are striving with our customers to create a new era of collaboration and innovation to drive efficiency and productivity for the benefit of global energy and economies. We know from GE’s experience in other areas such as Aviation, that the long-term strategy will pay off. We know that there is incredible power in the digital realm, and we have invested significant resources to pioneer game-changing tools for the Industrial Internet. Our quest for progress is relentless as we continue to work closely with customers, suppliers, and all the different knowledge bases within the GE Store worldwide.

Thank you for bringing your ideas, experience, and enthusiasm to the breath-taking Florence Opera House. Let’s continue the dialogue, combining the strengths of our best minds and best machines — so we can keep delivering energy to the world for decades to come.

tHANK YOULorenzo SimonelliPresident and CEO, GE Oil & Gas

GE Oil & Gas customers reflect on Annual Meeting 2016

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