NCE Study Tour Houston

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NCE Study Tour - Houston

• Setting the Scene Focused on Energy
• March 6th, 2008

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OUTLINE

• US Economic and Energy Outlook
• Norway US Focus on Energy Technologies and
  Relationships
• Houston Energy Capitol of the World
• Business Environment and Culture in Houston

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US Economic Trends Feb 2008

• Expect slower growth for 2008
• Key lending rates reduced to balance against
  growing inflation
• Housing starts and sales continues to decline
• Energy prices continue to rise
• People are feeling the pressure

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Energy Outlook US GOM

• Investments in Coal, Oil Gas will expand
• Biofuels and Renewables even faster!
• Significant resources undeveloped in GOM
• Strong demand for Good and Services
• Lease turnover provides opportunities
• Deepwater focus
• Not enough Drilling Rigs in GOM to keep the pace

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US will expand investment in OG Energy

• US Energy Information Agency (EIA) predicts
• Today 65 Energy needs met with Oil GAS
• Even with Renewables, US needs 25 more OG to
  meet energy needs by 2030

• National Petroleum Council (NPC) Reports
• Facing the Hard Truths About Energy July 2007
• Coal, Oil and Natural Gas remain crucial in
  meeting the projected demand

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OUTLINE

• US Energy Outlook
• Norway US Focus on Energy Technologies and
  Relationships
• Houston Energy Capitol of the World
• Business Environment and Culture in Houston

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US Norway a long and successful history

• Late 1960s US supports development of first
  North Sea assets
• Today the NCS is THE proving grounds for leading
  edge technologies for Offshore Oil Gas
• Future brings Norway and US back to the GOM
  deepwater frontier

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Match up well with. Norwegian Experience
NCEs

• Solid market fundamentals for OG growth
• Norwegian experience well positioned to add value
  in key US energy growth initiatives

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OUTLINE

• US Energy Outlook
• Norway US Focus on Energy Technologies and
  Relationships
• Houston Energy Capitol of the World
• Business Environment and Culture in Houston

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Houston Energy Capitol of the World

• 50 of regions economic base employment
  related to energy
• 5000 energy-related establishments
• 400 exploration production firms
• 30 pipeline operators
• Hundreds of manufacturers
• Major players and influence on energy project
  developments around the world

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Houston local economy March 2008

• US economy slower growth for 2008
• Houston economy healthy and growing in 2008 (
  100,000 new jobs)
• Houston growth positively effected by energy
  markets and port activity
• Housing continues to decline
• Upstream EP, Oil Services and Machinery remains
  strong
• Production of manufactured goods is growing, New
  orders slowing, Supplier deliveries slowing

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Norwegian home team in Houston
100 Norwegian companies in Houston 6000
Norwegian citizens

• Norwegian Consulate
• INTSOK
• Innovation Norway
• NACC
• Norwgian Seamens Church
• Integrated shared services approach to the
  local Norwegian community

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INTSOK in the USA
Energy Oil Gas Technology

• Market Intelligence
• Strategic Advisory Services
• Exposure to key clients
• Technology Workshops
• Market Entry Programs

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Norwegian Oil Gas World-Class Clusters
De-commisioning
Operations
Platforms (fixed/floaters terminals)
Subsea
Drilling
Reservoir/ Seismic
Reservoir Seismic
Drilling
Operations
Project- manage- ment Engi- neering
Subsea
Oil Companies
Maintenance Modi- fications
E, IT
De- Commis- sioning
Main Contractors
Fabrication package supplier
Drilling equipment
System Integrators
Down-hole well services
Marine Systems Mechanical equipment
Environ- mental protection
Equipment models
Product Suppliers
Logistics Transpor- tation
Service Companies
Research development Consulting Financing
Research Development, Consulting and FInancing
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OUTLINE

• US Energy Outlook
• Norway US Focus on Energy Technologies and
  Relationships
• Houston Energy Capitol of the World
• Business Environment and Culture in Houston

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Houston / GOM Market Fundamentals

• Service is King in Houston
• Different bidding/contracting practices
• Value is often judged by PRICE
• Differentiated Technology Critical
• Permanence People and Products
• Attracting and keeping local talent
• Be sensitive to cultural differences

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Culture results oriented.just do it!

• Relationships are key to successaccess is
  limited
• Research programs must be driven by the Energy
  company to be viable
• Business alliances, partnerships and
  collaborations are common
• Active participation in professional associations
  is critical to success in Houton

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Federal state authorities
Associations
Corporations
Research institutions