GE Infrastructure Analyst Meeting

November 2, 2005

GEOil & Gas

Claudi SantiagoPresident & CEO

2 / Santiago

GE Proprietary & Confidential

Oil & Gas demand and supply challenge

• Depletion rates accelerating to >6% creating new challenges

• New reservoirs in difficult areas … technology critical

• Significant new investments needed to meet world demand

Supply ChallengeOil & Gas Demand

0

50

100

150

200

250

2000 2010 2020 2030

Mboe / d

Oil

Gas

Mboe / d

100

150

250

2000 2010 2020 2030

50

0

Existing Reserves

RequiredNew Production

200

Oil & Gas regional supply & demand imbalance

139

N America

23

1-2%35

2-3%11

27

ME & Africa

37

12

2314

Eastern Europe

31

3-5%2-4%

1-2%

1-2%

3-4%

3-5%

3-4%1-3%

1-2%

4-5%

Asia Pacific

13

L America

(Mboe / d)

Total World Demand

(CAGR% ’04-’15)

‘04 ‘15

163163

128128

2%

81

91

47

553%

2%

Gas

Oil

’04 Supply – Demand by Regions(Mboe / d)

(CAGR% ’04-’15)

Required New Supply(’04 – ’15)

LNG

Pipelines

16%

55%

3% - GTL

26%Local

Consumption Supply

Demand

Western Europe

Supply > Demand

Source: CERA, EIA, IEA, BP

Oil & Gas industry challenges play to GE strengths

4 / Santiago

GE Proprietary & Confidential

‘05 – ‘15 Segment Indicators

Source: SSB, EIA, Lehman

Oil & Gas industry … very attractive for GE

• E&P capex +30% … offshore and deepwater• Floating production fleet 2X … + 275 vessels• Depletion Rates > 6%

• LNG demand 2X … ~50 new trains• LNG from 6% to 10% of world gas consumption• Gas pipelines +25% … ~0.4MM miles

• Refining production +20% … 82 to 100MMb/d• Ethylene capacity +45% … 30+ new plants • GTL to satisfy 1.2% of gas consumption

60

60

’15F

$355

235

Transportation

Processing

’05

45

$265

170

50

Exploration &Production

($B)

5 / Santiago

GE Proprietary & Confidential

Multiple ways to grow

• Monetize stranded gas

• Enhanced oil reservoir recovery

• Bring gas to China

• Increase refinery capacity

• Capture installed base opportunity

6 / Santiago

GE Proprietary & Confidential

Monetize stranded gas … Qatar LNGNatural Gas Monetization LNG Production … Unprecedented Scale

Australia

Malaysia2.3

7.8(MTPA)

Fr 51985

Fr 7E1991

Fr 9E2004

200$/toe

Production Cost

Qatar

2.7

100$/toe

50

400

Pow

er (M

W)

$600MM won year-to-date

• #1 for Gas Reserves/sqMile• North field = 60 miles• ~250 Years UK Demand

• 1 train … size of a football field• ~400MW … 8 MM tons / year LNG• GE … proven gas turbines & world

class compression

Ras Laffan

QATAR

DohaDoha

NorthField

7 / Santiago

GE Proprietary & Confidential

Enhanced oil reservoir recovery … Middle East

GE Technology Helping to Maximize Oil Production

Improve production by ~20%

Re-injection Recovery Technology Options

Recovering Only ~35% of Oil Fields Capacity

• Natural gas• Water • Acid Gas and CO2

• 250+ re-injection trains

• 40+ gas turbine driven water injection pumps in Saudi Arabia

Recent wins … >$100MM in Orders

• UAE … Turbo-compressor re-injection trains + plant upgrades

• Saudi Arabia … gas turbine driven multi-phase pumps

8 / Santiago

GE Proprietary & Confidential

TarimBasin

Bring gas to China … west to east pipeline

Aviation20 LM2500+

Oil & Gas24 CC

Service JV – GE / SBWMajor Chinese Compressor Manufacturer

+

Pipeline length 2,400 miles

+

• GE’s equipment technical advantages and system integration experience• Local commitment to a growing market … manufacturing & service shop facilities• “One-stop” solution: gas turbines, compressors, services and pipeline inspection

Why We Won … ~$200MM Project:

Building on one GE

Pipeline in operationWest-East PipelinePipeline under construction

9 / Santiago

GE Proprietary & Confidential

Increase refinery capacity … equipment upgrade

US Gulf Coast Refinery

• 50% capacity increase … +25,000 barrels/day

• Increased reliability by ~1 pt

• CapEx … ~30% savings vs new

Customer Value

Integrated Solution

• Turbines, compressors & expanders

• One-stop shop … turn-key, installation, commissioning & start-up

• Six-sigma re-engineered package

Increased capacity with optimized CapEx investment

• Need environmental upgrades

• Physical space restriction

• Compressed project cycle

10 / Santiago

GE Proprietary & Confidential

Capture installed base opportunity … services

• 30+ Countries

• 1,400 Units

• Injecting technology to drive productivity

Recip.Comp.

Cent.Pumps

Cent.Comp.Turbo-

expandersGas

TurbinesS & V

Comp.Steam

Turbines

9,400

8,000

3,000

2,000

1,700

1,600

700

$1.4

‘04

~$2.1

’05E

$0.2

‘00

$0.8

‘03

AAGR 60%($B)

• Unpiggable NPI increasing GE entitlement

• First generation launched summer ‘05

CSA’s Commitments

World Pipelines = 1.7MM Km Pipeline Inspection

# of Operating Units

42%

58%Piggable

Unpiggable

Installed Base

Service growth … 10x in past 10 years

11 / Santiago

GE Proprietary & Confidential

300

300

150

Oil & Gas 2006 Opportunities

1390 1095

180

450

200

450

North America$840 (9.5%)

Western Europe$1450 (16%)

Eastern Europe$930 (10%)

China $390 (4.4%)

Asia$900 (10%)

AIM$3585 (40%)Latin America

$915 (10%)

500

195

790

100

80

120

340

130

~3.3 B

Exploration & Production

~2.5B

Transportation

~1.7 B

Refinery & Petrochemical

~1.5B

Service + Pipeline Inspection

140

60

310

100

190

50

(%) - % Total Visible Opps

290

Going where the action is

Looking @ $9B+ of identified opportunities

Qatar

Nigeria Training Center& Service Shop

Kazakhstan

Brazil Packaging

490

170

340

JV in China

100Algeria Training Center

($MM)

12 / Santiago

GE Proprietary & Confidential

Financial overview … Oil & Gas

Revenue

OP

• ’06 revenues over 2.5x ’00 level

• CSA backlog $0.7B up in ’05 …3x in 3 years

• $9B+ identified opportunities …equipment & services

• Technology investment … over $225MM in last 3 years

• Robust market … multiple ways to grow

($MM)

'06E

+15-20%

$331

~$400

'05E'04

$3,129

~$3,800

+10-15%

GE Infrastructure Analyst Meeting

November 2, 2005