Market Survey System - Upstream Spending & Industry Trends

IHS ENERGY Market Survey System - Upstream Spending & Industry Trends Capital Equipment Drilling and Well Services Services Build the oil and gas industry s most comprehensive view of spending and industry trends into your organization s market intelligence for strategic sourcing, project investment and business development decisions - Upstream Spending Report - North American Upstream Spending Report - Industry Trends

Market Survey System Upstream Spending & Industry Trends IHS Costs & Strategic Sourcing Solutions Delivering analysis of demand, supply and costs in upstream supplier markets to support decisions on sourcing and investment for projects across the oil and gas value chains. IHS via its Market Survey System (MSS) provides timely and objective data, analysis, and forecast on costs, spending, and deliverability for more than 30 categories and 90 suppliers of critical E&P capital equipment and services. Expert analysis of demand, supply and market power is paired with transparent models of suppliers costs for defined onshore and offshore market segments covering exploration & drilling, EPC fabrication, capital equipment and services. Global economics, price volatility and supply chain relationships present a complex and changing mix of factors for companies developing upstream oil & gas projects. As an oil & gas operator, your procurement and contract teams require the best available insight and data to make better sourcing decisions across spending categories, supporting more predictable project deliveries and improved bottom-line savings. IHS MSS provides actionable intelligence to managers of supply chains, procurement, and spending by category as well as supplier analysts and market intelligence professionals and helps you confidently deliver commercially successful sourcing programs. Changing market dynamics create new challenges for upstream service companies and equipment suppliers. As a supplier to oil & gas operators, your strategic planning and business development organisations require reliable intelligence on demand for both your peers and your own target segments. IHS MSS helps you make successful decisions about your upstream market strategy by providing insight into market segment trends and the market position of peers in the upstream sector. IHS Upstream Spending & Industry Trends reports IHS Market Survey System gathers industry-leading analysis and outlooks on demand, supply and costs at the market segment level. Three overarching reports draw together these insights into an upstream sector overview, providing a comprehensive and detailed picture of upstream spending and industry trends: Upstream Spending Report North American Upstream Spending Report Industry Trends What questions does this detailed sector overview answer? How much money is being spent in the upstream industry, where, and on what? What is driving demand for upstream services and equipment? Where are the supply constraints and growth opportunities? Who will benefit from these 3 reports? Market intelligence and strategic sourcing teams at E&P operators Market intelligence, strategic planning and business development teams at service sector companies and equipment manufacturers Investors and other stakeholders in the upstream project sector

What Does the IHS Upstream Spending Report Cover? How much money will be spent in the oil and gas markets this year? Every day, stakeholders across the upstream value chain have to make crucial investment decisions in an uncertain and everchanging market environment. In response to this challenge, we are pleased to offer the IHS Upstream Spending Report bringing together analysis from across IHS to provide the most comprehensive view available of spending trends within the oil and gas industry. Delivered quarterly, the IHS Upstream Spending Report is designed to support the strategic planning efforts of oil and gas companies, their suppliers, and investors in the upstream industry. It provides historical overviews and an outlook for capital and operating expenditures. Five-year projections are built on a project-by-project basis that leverages the IHS Upstream Capital Costs and Operating Costs Services and the Market Survey System s quantitative analysis of service category demand across the oil and gas industry. The IHS Upstream Spending Report uses a bottom-up approach to modeling demand in the oil and gas industry. This methodology builds on the onshore and offshore project databases developed across the IHS Energy portfolio of research and analysis services, utilizing hundreds of project entries. This places IHS in a unique position to fully forecast industry spending trends globally using a bottom-up, project-by-project approach. Scope of Report Exploration Development Installation Operations Abandonment Seismic Conventional Unconventional LNG Rigs/Drilling Pipelay Operations Maintenance Logistics Decommissioning Well Services Well Services Seismic FEED Subsea Prod. Systems Topsides Jackets FPSO/FSO Floaters (Semis, TLPs. Spars) Pipelay Pipelay Installation (ROVSV / DSV) Heavy Lift Operations Maintenance Logistics Decommissioning Heavy Lift FLNG Rigs/Drilling Well Services Well Services Equipment/ Bulk Labour Rotating Equipment Heat Exchaners/Vessels & Tanks Electrical Bulks/Instrumentation Line Pipe Construction Labour Engineering

The Upstream Spending report enables clients to: 1. Understand where, and on what the money is being spent 2. Gain an overview on spending under current economic conditions, and economic outlooks 3. Identify which market segments and geographical areas show the most growth and provide the best opportunities for investment 4. Understand projections that help them plan sales and revenues 5. Receive a detailed, ground-up, objective, third-party view to check against their forecasts Sample charts from report:

What Does the North American Upstream Spending Report Cover? How will CAPEX and OPEX fare in the North American upstream sector this year? Where will money be spent in which regions and which market segments? North America has developed into an important and dynamic region for upstream project investment, and it is likely to be a key swing market in the current low oil price environment. Players across the value chain who are active in the region make daily investment decisions in this uncertain environment. For those who have no direct involvement in the North American upstream market and industry, its size and dynamics ensure it remains crucial to understanding both global E&P spending and future oil and gas supply. To support the strategic planning activities of oil & gas operators, suppliers and contractors - as well as investors and other stakeholders IHS Market Survey System added the North American Upstream Spending Report to its overview of industry trends and spending in 2015. The quarterly report brings a regional focus on Canada and the United States and particularly highlights unconventional spending. Drawing on analysis from across IHS, the quarterly report delivers a complete overview of conventional and unconventional upstream spending and a detailed breakdown by play and spending categories. It identifies key drivers and growth segments, and provides a 5-year outlook on upstream oil and gas spending in North America. The North American Upstream Spending Report answers these key questions: To what extent will future spending growth be driven by cost inflation? What is the «real» spending growth over the forecast period (discounting the impact of cost inflation)? What are the main cost drivers for conventional and unconventional activities, and how are costs set to evolve? The North American Upstream Spending report enables clients to gain a detailed understanding of: How much money is being spent in the upstream industry, where, and on what? What is driving demand for upstream services and equipment? Where are the supply constraints and growth opportunities? The North American Upstream Spending Report uses a bottom-up approach to modeling demand in the oil and gas industry similar to that used by the Upstream Spending Report.

Sample charts from North American Upstream Spending report: Sample charts form Industry Trends report: How is North American upstream spending set to evolve in absolute terms and relative to the global industry? Are new project sanctions increasing or slowing down? What will be key areas of Operator focus? How will service providers respond? Where is North American upstream spending distributed geographically? How are service vendor markets evolving? What areas are growing or shrinking? What areas are Operators spending the most money in? Which market segments are driving North American upstream spending? How will upstream spending change over the next 3 years and which categories will be affected most?

What does the Industry Trends Report Cover? What is driving upstream supplier activity? Are investments in supplier capacity meeting demand from upstream operators? What is the status of order intake and project backlog? Upstream operators sourcing services and equipment, as well as service sector companies developing their market strategy, need an informed and comprehensive overview of the supplier/ contractor markets to the upstream oil and gas industry. The Industry Trends report brings together the principal trends from 30+ Upstream Market Segments covered by IHS Market Survey System to help clients gain an understanding of key drivers across the industry as well as insights into industry directions. Delivered 3 times a year, the Industry Trends report considers common threads - historical, present, and future as well as any significant divergences within the supplier/contractor industry. To facilitate comparison between markets, industry trends are analysed separately for onshore and offshore expenditure. The suppliers/contractors are covered through the onshore, offshore, capital equipment /bulks and services sectors. Demand trends are analysed and compared by tracking contract awards, project decisions and spending data. Supply capacity is evaluated in terms of workforce, rig and vessel fleets, fabrication yard capacity, and order backlogs. The report looks at the supply and demand balance to draw conclusions about bargaining power and margins, market structure and supplier strategies. The Scope of the Industry Trends Report Capital Equipment/ Bulk Prod. Fac. Oil Sands Topsides Fabrication Jacket Fabrication Gas Compressors Gas Turbines LNG Liquef. Facilities LNG Regas. Terminals FPSO/FSO Floaters Subsea Equipment Heat Exchangers Pipelay Pipelay Heavy Lift Line Pipe OCTG Inst. (DSV/ROVSV) Valves Services Accommodation Helicopter Services Engineering Services Construction Labour Well Services (incl. Drilling Fluids and Well Logging) IMR (Platforms) The Industry Trends report enables clients to: 1. Identify upcoming projects and future growth markets 2. Track performance and projects of key competitors 3. Understand future demand requirements and the current supply base 4. Foresee opportunities and constraints in the supply chain

Representative Supplier/Contractor profiles Aker Solutions Alfa Laval Allseas AMEC Air Products ArcelorMittal Baker Hughes Bechtel Black & Veatch Bourbon Bristow Cal Dive Cameron CB&I CCC CGGVeritas CHC Helicopter China Oilfield Services (COSL) Chiyoda CNPC China Petroleum Pipeline Bureau China Engineering Company (COOEC) China State Shipbuilding Corporation (CSSC) Shanghai Yard Daewoo E&C China Shipbuilding Industry Corporation (CSIC ) Dailan Shipbuilding Doris Engineering Dresser-Rand Dril-Quip Daewoo Shipbuilding and Marine Engineering (DSME) ENSCO Entrepose Contracting Europipe Fluor FMC Technologies Foster Wheeler GE Oil & Gas Halliburton Heerema Group Helix Hyundai Heavy Industries (Hyundai HI) IHI Corporation J Ray McDermott Jacobs Engineering JGC KBR Keppel & Marine Kiewit Kvaerner Larsen & Toubro Linde Engineering Maersk Oil and Gas Contractors MANTurbo Marubeni-Itochu Mitsui Engineering Malaysia Marine and Heavy Engineering (MMHE) Modec Mustang Engineering Nabors National Oilwell Varco Nippon Steel NKT Flexibles Noble NPCC Oceaneering Panalpina Petrofac Prysmian Punj Lloyd Rolls-Royce Saipem Samsung HI SBM Schlumberger Sea Trucks Group Seadrill SembCorp Marine Siemens SNC-Lavalin Solar Turbines Subsea 7 Sumitomo MI Tata Steel Europe (Corus) Techint E&C Tecnicas Reunidas Technip Tenaris Toyo Engineering Transocean URS Corporation Vallourec Weatherford Welspun Wilbros Wood Group WorleyParsons Further MSS coverage Topsides Fabrication Floating production, storage, and offloading (FPSO/FSO) units Floating LNG (FLNG) Floaters tension leg platforms (TLPs), spar, semisubmersibles Heavy Lift installation (diving support vessels [DSVs]/ remotely operated vehicle support vessels [ROVSVs]) Pipelay Accommodation Jacket Fabrication Construction labor Drilling fluids Engineering services Gas compressors Gas turbines Heat exchangers Inspection, maintenance, and repair (platforms) Line pipe OCTG helicopter services rigs floaters rigs jackup Subsea equipment Umbilicals and flexible pipes Well logging production facilities LNG liquefaction facilities LNG regasification terminals pipelay drilling rigs Oil Sands mining Valves ABOUT IHS IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world. EUROPE/OSLO Frank Larsen Market Intelligence Manager Tel: +47 21 05 90 60 Mobile: +47 928 13 135 Email: frank.larsen@ihs.com AMERICA/NORWALK Bill Redman Senior Director, Costs & Strategic Sourcing Tel: +1 203 644 1803 Mobile: +1 203 246 5088 Email: bill.redman@ihs.com APAC/SINGAPORE Seimin Kuan Senior Manager, Costs & Strategic Sourcing Tel: +65 6439 6208 Mobile: +65 9649 4600 Email: seimin.kuan@ihs.com 8390-0315JK