INTSOK

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INTSOK

• USA Gulf of Mexico
• Market Challenges and Opportunities

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Path of Hurricanes Katrina and Rita - 2005
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Effects of Hurricanes Katrina and Rita

• 3,050 of the Gulfs 4,000 Platforms in the direct
  path of either Katrina or Rita
• 22,000 miles of 33,000 miles of pipelines were in
  the path of the Hurricanes
• As of April, 2006 - Shut in Oil at 22 and Gas
  at 13
• Companies were still cleaning up the damage in
  2004 from Hurricane Ivan
• Katrina destroyed 46 Platforms, damaged 20
  Platforms and
• 100 Pipelines
• Rita destroyed 69 Platforms, damaged 32 Platforms
  and
• 83 Pipelines
• Ivan, by comparison, only destroyed 7 Platforms

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Gulf of Mexico Expenditures
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Gulf of Mexico Deepwater Activity

• Constant high activity levels 42 rigs (3/06)
• 10 rigs working in 5,000 water depth
• Annual spend rates of 16 billion over the last 6
  years and expected to rise to the 18 billion
  range into the future
• Half of the annual spend is in Drilling
• 107 Projects in Production Phase
• 28 Projects in Construction Phase
• 86 Projects in Planning or Development

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New Projects tracked by INTSOK
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2005 Announced Deepwater Discoveries, Gulf of
Mexico
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Deepwater Discoveries by Year
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Technical Challenges Opportunities for All

• New Opportunities in much deeper water
• Minimize the effects of weather and currents
• Accept FPSO idea somebody has to be 1st.
• Improvements in Reservoir Imaging
• Salt complications for evaluation and drilling
• Extended Reach Drilling Completion
• 24,000 deep Production Zones

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Technical Challenges Opportunities for All

• Flow Assurance
• Long tiebacks
• HP/HT Subsea Equipment
• Subsea Processing
• Gas to Liquids
• Light Well Intervention
• I Field or E Field development

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Other US Priority Markets

• LNG regas terminals
• Alaska
• Offshore California
• US Land Market