3 GE TodayGE is an advanced technology, services and capital company with the scale, resources and expertise to take on the world’s toughest challenges. Dedicated to innovation in the areas of energy, health, transportation and infrastructure, we’re committed to leadership, partnership and human progress.3Energy overview revised: 11/10/11
4 GE Works as a U.S. job creator >834,000 jobs are supported by GE $166.2 billion in U.S. economic activity is generated annually by GE’s operations, pensions, and dividends133,118U.S. basedGE employees701,123Jobs supported byGE operations834,241Total U.S. jobsGE plays a role in 1 out of every 208 jobs in the U.S.Source: Tripp Umbach study - Economic impact of GE on the U.S. economy
5 Forging strong relationships with U.S. suppliers GE purchases more than $40.6 billion annually from U.S. suppliersGE purchases more than $15.5 billion annually from U.S. small businesses and diverse suppliersNearly $2 of every $5 GE spends goes to small and diverse suppliersTake away box refers to GE’s direct and indirect impact. Our operations, and the money that flows through the economy as a result, contributes to this figure. GE is not solely responsible for $1 out of every $87, but we contribute $1 out of $87 due to the way the money ripples through the economy. Think of it this way – GE pays your salary, you in turn go to a restaurant for dinner which helps to generate money in the pocket of the server, the cook, the bus boy, the owner, the utility company, etc. They then do the same . . .GE helps contribute to $1 in every $87 in the U.S. economySource: Tripp Umbach study - Economic impact of GE on the U.S. economy
6 Energy is a global scale business GE Energy25% of GE revenueTechnology partner for customersOil & GasPower & WaterEnergy ManagementDrilling & SurfaceGlobal ServicesMeasurement & ControlPII Pipeline SolutionsSubsea SystemsTurbomachineryAeroderivative Gas TurbinesGas EnginesNuclear EnergyPower Generation ServicesRenewable EnergyThermal ProductsWater & Process TechnologiesDigital EnergyIndustrial SolutionsPower ConversionEnergy is a global scale business
14 Our cultureWe invest in people and develop global leaders in a high-integrity environment.We perform with excellence focused on organic growth, productivity and risk management.
15 Next decade industry challenges for oil and gas … environmental and operational regulations ... efficiency and safetyTighterGenerationalNew lifefor old fields … Enhanced Oil RecoveryReservesare more difficult to find … deepwater, unconventionals, arctic, sour and acid gasgap and domain expertise emerging as an issueKey Challenges:New life for old fields … today’s recovery rates from a typical field are ~40% … this can be enhanced by EOR techniques to be closer to 70% GEO&G’s main plays are in water re-injection (viz application for BP in the North Rumaila where we have sold HP pumps driven by Waukesha gas engines) & CO2 reinjection (viz Gorgon where we are re-injecting CO2 stripped during LNG liquefaction)Reserves more difficult to find … & produce. Product is also harder to handle (eg Kazakhstan product is typically ~30% H2S)Tighter environmental & operational regulations … governments around the world are demanding that oil & gas production is achieved safely, with lower environmental impact … customers want to “sweat” their assets – they demand higher efficiency … higher availabilityTalent … Last big influx of people into the industry was in the 70s/80s … now getting close to retirement (viz 50% of senior instrumentation engineers are +55yrs old ... ie will retire in next 10 years) … also NOCs are demanding high % local employees (viz in W Africa (Angola, Nigeria, Ghana etc) targets are +70% local staff … > 50%15
16 Global electricity demand growth Billion kWhNon-OECDOECD*4.4% CAGR1.2% CAGRBEST CASE SCENARIOSIt’s easy to imagine worst case scenarios—blackouts, economic instability, shortage of supply—but it’s just as necessary to imagine best case scenarios and then find ways to make them happen.ALTERNATE ABUNDANCE—Developing renewable technologies to supplement—and ultimately replace—hydrocarbons.Demand to increase by 85% … portfolio improvements neededSource: GE Energy 2011 outlook*OECD includes: Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, South Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK and U.S..
21 More Global … by connecting people and ideas everywhere
22 Energy’s global footprint … Operating in over 165 countries • 100,000+ employeesCountries Energy is doing business/operationsCountries Energy is doing business
23 Expanding emerging regions capability Kaluga, Russia – power technologyShenyang, China - manufacturingPerth, Australia - servicesHai Phong, Vietnam - manufacturingDammam, Saudi Arabia - manufacturing and technologyBoufarik, Algeria - services
24 Diverse energy solutions GasRenewablesWater TechnologiesSmart GridTop 10 technologies …1 –2 – Renewables … combine wind and solar (bag nuclear)3 – Distributed power … replace with biomass4 – Electrification5 – Asset Health6 – split O&G … deep sea exploration and production … LNG, whatDistributed PowerElectrificationAsset HealthEnhancedOil RecoverySubsea Systems
27 Creating solutions around the way you operate your plant Power Generation Services Empowering customers through life cycle solutionsPlan & InstallOperate & MaintainUpgrade & OptimizeRepower/RetireEconomic forecastingGeneration planningFlexible operationsO&M optimizationParts/repairs reliabilityOutage solutionsPerformanceAsset life extensionTotal plant solutionsDecommissioningRepurposed assetsAsset repoweringCreating solutions around the way you operate your plant
28 Water & Process Technologies 8,000 global employees • $2.2B 2010 annual revenueAddressing global challenges … water availability, quality, productivity, energy and the environmentDelivering solutions through global research centers located in India, China, Germany, Brazil and the United States with committed experts developing water and process solutions for industry challengesProviding chemical monitoring solutions and equipment systems for key industries … power generation, mining, petrochemical, oil & gas, steel, food & beverage, municipal and unconventional gas
29 Digital EnergySmart GridPower EquipmentProlec GE JVElectrical energy transformed into mechanical energy by a motorMechanical energy transformed into electrical energy by a generatorAdjusting frequency and current through a converter or an inverterMetering & Sensing SystemsGrid AutomationSmart Grid SolutionsPower QualityPower DeliveryPower SensingPower TransformersDistribution TransformersAutotransformers & ShuntsEnd-to-end vision, technology and expertise to build a smarter grid. Today.