North American Downstream Market & Construction Outlook

EPC CONTRACTOR VIEW OF THE DOWNSTREAM MARKET & CONSTRUCTION OUTLOOK

November 14, 2016

Dean WennerEVP & General Manager

North American Downstream Market & Construction Outlook

Ethylene20%

LNG64%

Plastics10%

Petrochemicals3%

Methanol4%

North American Downstream Market & Construction Outlook

Ethylene45%

LNG28%

Plastics4%

Petrochem7%

Methanol16%

$70B

$100B

Ethylene34%

LNG47%

Plastics6%

Petrochem4%

Methanol9%

$135B

Backlog + Planning

Forecast

North American Downstream Market & Construction Outlook

North American Downstream Market & Construction Outlook

North American Downstream Market & Construction Outlook

The US Energy Information Administration this last week raised its 2016 oil demand growth estimate by 40,000 bpd to 1.33 million bpd.The agency also raised its 2017 oil demand growth forecast by 180,000 bpd to 1.52 million bpd.

North American Downstream Market & Construction Outlook

WE MIGHT BE RIGHT!

Will it happen?

Is it sustainable?

What can be done to make the future business more predictable?

• Owners need project success and capital efficiency• Project economics are challenged• Project supply chain is not effective

Is the focus on construction technology and productivity valuable?

North American Downstream Market & Construction Outlook

We are not enabling construction success• Late Deliverables• Inaccurate Deliverables• Late/Incorrect Materials• Unexpected issued with work flow impeded or site access in general

Get the engineering rightGet the materials right

Project & Construction Management LeadershipEmpower Construction to be GREAT

Significant Demand anticipatedHealthy Portfolio of projects

Business casePerformance improvement

North American Downstream Market & Construction Outlook

Strong Outlook

Let’s make it stronger!