1. Mission POSSIBLE WHY INNOVATION IS MISSION CRITICAL….

2. Today’s Energy Industry is Characterized by Challenge and Change  Related to Profit  High debt levels  Economic changes  Producing a globally priced product  Access to markets  Not competitive cost structures  Related to People  Productivity/Engagement  Talent shortages  Changing demographics  Socio-business changes  Related to Planet  Environmental pressures  Social license  Reputation  Related to Other  Political policy changes  Regulations  Complexity of problems  Adaptation to technological advances  “Data Deluge”

3. How We Will Thrive, Not Just Survive  The companies and people that have the best ADAPTATION skills will be the most successful. Some of the most inspiring and invigorating adaptations are:  Creativity (about how we see the world as curious and interesting)  Innovation (making things better/implementation of something new)  Collaboration (expanding the set of solutions)  ADAPTATION will be assisted by:  More entrepreneurial thinking  Passion/engagement  Desire to change

4. What is Stopping Us? And yet, speed of adoption lags behind that of other industries…. We need to have the willingness to figure out: “what are the barriers to innovation in our industry?”  People know innovation is important  We see success from those that do it  There is an increasingly interconnected global network of knowledge and ideas  There are lots of technologies out there  Other industries are adopting them  It is clear that technology plays a fundamental part in ensuring that hydrocarbon reserves can be extracted efficiently

5. Barriers to Innovation from Corporate Strategy  Too busy developing resources and making money  Fixation on short term horizons - must have quarter to quarter results and growth  Reliance on what has worked  Hyper competitiveness and not willing to share ideas  Fear of failure  Organizations that are not responsive enough to change  Narrow views of innovation

6. Barriers to Innovation from Organizational Culture  Disheartening “NO” hierarchy  Lack of freedom/ownership  Too much focus on left-brain structure, tasks, process and efficiency  ‘Success only’ reward system  People don’t feel passionate, enthused, motivated to think of new ideas  Separation mentality  Lack of sharing of information which can spark interactive ideas

7. Barriers to Innovation from Narratives  “Don‘t worry it will recover”  “The way we are doing is working just fine”  “We have to do it this way”  “That is just the way it is”  “That won't work”  “There are no economics for that”  “That‘s a crazy idea”  “That will take too long”

8. What Do We Need To Do?  The benefit of understanding barriers is that they point you to what you have to change  Have organizations that foster and make innovation important, effective, agile and meaningful  Innovate processes to be leaner, simpler, faster  Be smart early adopters of technology  More longer term thinking  Develop the skills of right brain  Create better narratives  Seek out collaboration  See it as an opportunity to lead and be game-changing

9. CATEGORIES OF GAME CHANGERS TECHNOLOGIES CORPORATESOCIAL “We live in an age of disruption. Industries will be transformed. Many companies will fail. Old systems will collapse as entrepreneurs figure out how to optimize and re-invent inefficient businesses, products and services to provide consumers with all things better, faster and cheaper.” - Peter Diamandis, President of XPrize

10. TECHNOLOGY GAME CHANGERS Current  Mobile APPS (access to world and services from phone)  Cloud data (virtual world, mobility transparency)  Cyber security (protection of digital data)  Autonomous cars (safety, land, energy, productivity) Coming  IoT: Internet of Things (sensors will enter every aspect of our lives allowing us to know anything we want, anywhere, anytime)  Robotics (personal, mechanical labor, precise labor, farming)  Low altitude satellites/sensing (GIS, insurance, markets, sustainability)  Big Data/Artificial Intelligence (processing, Watson, modeling, predicting, analyzing)  Augmented reality (no screens, virtual reality, holodeck)  3D printing (customization, medical, more local manufacturing)  Graphene (lightweight/strong building material, superconductor, non-rusting)  Clean energy (solar, fuel cells, H2)

11. CORPORATE GAME CHANGERS Current  Generational (more movement, tech-savy, freedom, simplicity)  Flexible work (flex time, share work, parental leaves, sabbaticals)  Non-local work (work from home, video conferencing, multiple offices worldwide) Coming  Self-managing/flat/dynamic  Freedom/individual design/initiative  Collaborative  Intrapreneurial  Unique and specialized  Idea, Creative, Intuitive and Generative work  Value based, not time based  Dynamic; Flash companies  Little distinction between work and personal

12. SOCIAL GAME CHANGERS Current  Social media/transparency (every body knows everything instantly)  Open source (interactive collaborative environment for innovation)  Content/uniqueness (key is differentiation among large volume of data) Coming  Democratization of everything (insurance, Uber, hotels, health)  Health care (biometric sensors, genomes, AI, stem cell)  Retail (virtual, customization)  Education (virtual learning, dematerialization, demonetization)  Vertical/Urban farming (local, higher yields, controlled environments)  Gamification (learning, training)

13. My Wish  Let’s view the current scenario as an opportunity to make technological and business process innovations that will drive better businesses now—and in the future.  Do what we do better and do better things  BELIEVE IT IS POSSIBLE