Today

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SESSION 1
Todays Vision Tomorrows Reality?
Session Presenter
Bill HallManaging Director, Mega
ProjectsWorleyParsons
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(No Transcript)
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Agenda

• Many challenges today
• Commodity pricing fundamental shifts
• Equipment and labor costs
• Project execution impacts
• Strategies to meet the challenges

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Significant Challenges Today and Tomorrow

• Annual Engineering Graduates in 2006
• USA 60,000
• China 200,000
• Average USA Professional Workforce Age in ECC
  industries
• Over 50 years old
• And many more issues
• But even more critical
• What is happening in overseas markets?

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Commodity Pricing - Fundamental Shifts
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Global Metals Outlook
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Global Metals Outlook
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Global Metals Outlook
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Fundamental Pricing Shift
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Steel Prices to Surge

• There is a strong view within the Chinese
  industry that miners will achieve the 85 percent
  increase, exceeding a 65 percent rise already
  agreed with a key Brazilian miner.
• The Australian Financial Review
• April 2008

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Equipment and Labor Costs
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Equipment Costs Rise
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Labor Costs Rise
1990-2000 3 YOY increase
2000-2008 4 YOY increase
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Project Execution Impacts
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Project Delays
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Increasing Risk
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Increasing Development Time
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Increasing Engineering Backlogs
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Strategies to Meet the Challenges
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Strategies

• HSE performance
• Workshare
• Accepting increased responsibility
• Partnering
• Early engagement
• New technologies

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Strategies

• HSE performance

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Strategies

• HSE performance
• Workshare

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Strategies

• HSE performance
• Workshare
• Accepting increased responsibility

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Strategies

• HSE performance
• Workshare
• Accepting increased responsibility
• Partnering

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Strategies

• HSE performance
• Workshare
• Accepting increased responsibility
• Partnering
• Early engagement

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Strategies

• HSE performance
• Workshare
• Accepting increased responsibility
• Partnering
• Early engagement
• New technologies

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(No Transcript)