The role of technology in optimizing operations & improving productivity Anup Sharma, Global CIO, GE Oil & Gas

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1 Keynote: The role of technology in optimizing operations & improving productivity Anup Sharma, Global CIO, GE Oil & Gas Imagination at work

2 GE today Power & Water Energy Management Oil & Gas GE Capital Healthcare Aviation Transportation Appliances & Lighting Aligned for growth 2

3 GE Oil & Gas today From extraction, to transportation, to end use ~45,000 employees ~$19B revenues 14 Downstream Technology Solutions Refinery & gas distribution Subsea Systems Subsea production systems, BOPs, Risers Turbomachinery Solutions LNG, on- and offshore, pipeline Measurement & Control Valves, controls, diagnostics Surface Onshore trees, Artificial lift, ESPs Delivering customer solutions by applying systems-level engineering across the value chain 3

4 A confluence of trends Hardware Meets Software New Ecosystems New Technologies Digital and physical worlds are colliding 4

5 When 50B Machines are connected? OT is virtualized Analytics become predictive Machines are self healing & automated Employees increase productivity Monitoring and maintenance is mobilized 5

6 Software Predix: OT platform for Industrial Internet $1B investment over 3 years Innovative Industry Solutions [ [ 3rd Gen Platform ] 2nd Gen Platform ] [ 1 st Gen Platform ] Cloud Big Data/ Analytics LAN/Internet Mainframe Intelligent Machines Infrastructure Security Client/Server Terminal Mobility 6

7 Big opportunities with Industrial Big Data The power of 1% Driving outcomes that matter Increasing freight utilization rail $27B Industry value by reducing system inefficiency Predictive maintenance healthcare $63B Industry value by reducing process inefficiency Predictive diagnostics power $66B Industry value with efficiency improvements in gas-fired power plant fleets 7

8 A challenging oil and gas ecosystem Economic Challenges Operational Challenges Purchased crude, oil & products Operating, SG &A Exploration Depreciation, Tax/Interest amortization & depletion Real-time monitoring of business critical KPI s at the enterprise and plant levels $800B+ Annual industry CAPEX (6-8% growth per year) $150M Average annual cost for mid-size LNG facility due to unplanned downtime 5-10% Range of O&G industry s estimated downtime 50% Industry retirement rate in next 10 years 7X Industry fatality rate above norm Faced with unprecedented economic and operational challenges in the oil and gas industry, the role of technology is critical to drive performance, equipment availability, safety & workforce enablement. 8

9 Cost overruns in the industry North America Latin America % 73% of the projects are facing cost overruns of the projects are reporting schedule delays Africa Europe % % % Middle east Proportion of projects facing cost overruns Proportion of projects facing schedule delays Average project budget overruns Asia-Pacific-Aus Source: Ernst & Young 9

10 How Big Data is transforming Aviation BEFORE NOW 1 KB / FLIGHT 30 PARAMETERS 3 SNAPSHOTS / FLIGHT Takeoff (average diagnostics) Cruise (average diagnostics) Landing (average diagnostics) 500 GB / FLIGHT 5,000 PARAMETERS 1 SNAPSHOT / SEC Air Speed Calibrated Altitude Cooling Valve Position Exhaust Gas Temperature Fuel Flow Ground Speed and more 10

11 Predictivity + aviation 11

12 Today s approaches not prepared for onslaught of Industrial Big Data 80% of an analytics project typically involves gathering and then preparing the data for analysis * 12

13 Industrial Data Lake delivers new outcomes 13

14 Predictivity opportunity in oil and gas industry 14

15 Intelligent Pipeline 5-10X ROI Customer Return 100 Days From idea to prototype APM Outcomes delivered: Holistic view of asset performance Optimized opex allocation Proactive asset decisions Reduced risk Win vs. aggressive competitor 1 5

16 Collaboration with a Purpose Enhanced Safety Optimized & Profitable Operations Efficient Workforce MAXIMIZING STAFF CONFIDENCE AND MINIMIZING LIABILITY RISK INTEGRATED SYSTEM NOT JUST A SET OF TOOLS Bringing data, people and expertise together across the value stream for outcomes CONNECTING MACHINES, DATA, AND PEOPLE WITH A PRESCRIPTIVE MINDSET 16

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