A Jumpstart-1 Possibility:

Shale Gas Opportunities for ISA
in North America
In Support of ISA Executive Board:
A Planning...
Let’s build on our mini-workshop session
from Nashville ISA Fall Leader’s Meeting

 What-If Scenario for just one Busines...
ISA Incoming President Perspectives for 2014:
From: Peggie Koon communications to Billy Bennett & NN, Dec 2013

 “The Sum...
Now I plan to build upon and leverage
Peggie’s Jump Start 2013 Sessions …


Current ISA Value
Proposition



Future Pers...
How Shale Gas Opportunity could
support ISA Current Value Proposition

[File Name or Event]
Emerson Confidential
27-Jun-01...
How Shale Gas Opportunity could
support ISA Future Value Proposition

[File Name or Event]
Emerson Confidential
27-Jun-01,...
How Shale Gas Opportunity could map
into ISA Next Gen Strategic Index

[File Name or Event]
Emerson Confidential
27-Jun-01...
Let’s now do a deeper dive into Action
Steps for this Business Opportunity …






Specific 9 steps & actions that coul...
Navigational Flow-Chart of the 9 Steps
Create ISA Value
Proposition

Create ISA Business
Deal Framework

Customized for th...
Navigational Flow-Chart of the 9 Steps
Create ISA Value
Proposition

Create ISA Business
Deal Framework

Customized for th...
Capital Investment: $3.17 Trillion in 20102035 (per I.H.S. for Unconventional Gas Investments)

[File Name or Event]
Sourc...
There Are Many Gas & Tight Oil Plays In NA

[File Name or Event]
Emerson Confidential
27-Jun-01, Slide 12
3 Basins prioritized by:

 Large O&G potential
recoverable resources
 Hi degree of CapEx
Investment spending
 Hi degree...
NA Shale Plays with Major O&G Operators
Oil

14

Natural Gas

NGL

Source: KBR
Top Shale Basin Plays Ranking
Source: EIA*

Name of Shale
Gas Plays and
Shale Oil Plays

Geographical
Extent of
Play

Tech...
Shale Basin Employment Contributions
(from I.H.S. Vol 1, June 2012)

3 Basins employment impact:

 In 2015, 793,000 are f...
Shale Basin CapEx (from I.H.S. Vol 1, June 2012)

3 Basins CapEx $ spend:

 In 2020: $76,280,400,000 (@ 68% of U.S.
Total...
Shale Basin CapEx (from I.H.S. Vol 1, June 2012)

3 Basins CapEx $ spend:

 In 2020: $76,280,400,000 (@ 68% of U.S. Total...
Navigational Flow-Chart of the 9 Steps
Create ISA Value
Proposition

Create ISA Business
Deal Framework

Customized for th...
Ideas for Specific Steps & Actions that could be
pursued by ISA Sections, Divisions, & HQ Staff
Suggested Steps for Shale ...
ISA Value Proposition for Shale Gas
Opportunity in Your Region


ISA can help accelerate and enhance your
Workforce Devel...
Tag-teaming to Jump Start the process …









[File Name or Event]
Emerson Confidential
27-Jun-01, Slide 22

Tag-te...
ISA Desired Perfect Deal for Shale
Gas Opportunity in Your Region


With Chairman/President of Shale Gas Coalitions
or Co...
Tag-teaming to Jump Start the process …
Cut/Paste NN Marcellus
Org Structure chart here
from “Primer”

 Face-to-face Fact...
Ideas for Specific Steps & Actions that could be
pursued by ISA Sections, divisions, & HQ Staff
Suggested Steps for Shale ...
Ideas for Specific Steps & Actions that could be
pursued by ISA Sections, divisions, & HQ Staff
Suggested Steps for Shale ...
Initial Thoughts on how this translates into Operational &
Tactical Next Steps for each ISA entity
Steps in this Opportuni...
Suggested Ideas for a Process to
Identify & Assess Next Waves
“Casting the Net”
Identification of
Future
Opportunities
Gas...
Jumpstart-2:

Shale Gas Business Primer in
North America
In Support of ISA Executive Board:
A Planning Mini-Workshop Sessi...
Example of Eagle Ford Consortium Org
Structure (@ www.eaglefordconsortium.org/committees/
ISA Business Opportunity
Educati...
Marcellus Shale Coalition (MSC) Org Structure
(@ www.marcelluscoalition.org/about

Gas & Oil
Companies
Investing in
that S...
Community Colleges in PA, WV, Ohio
• Navarro Community
College
• Pennsylvania
College of
Technology
• Stark State College
...
All have Instrumentation content …

[File Name or Event]
Emerson Confidential
27-Jun-01, Slide 33
Face-to-face Fact Finding Visits and
Meetings in Marcellus Shale Basin Region
Objectives of what are we trying to find out...
Let’s run this Shale Gas Opportunity
through filter of: Peggie’s Roadmap 6 Metrics

[File Name or Event]
Emerson Confident...
Let’s run this Shale Gas Opportunity
through filter of: Peggie’s Roadmap 6 Metrics
What does this look like if we
decided ...
5-Yr Opportunity Attractiveness $Millions 2014-2019

Strategic Business Opportunities
Attractiveness Matrix Analysis
$3.0
...
Navigational Flow-Chart of the 9 Steps
Create ISA Value
Proposition

Create ISA Business
Deal Framework

Customized for th...
So … where does
this Group want to
go next with this
Business
Opportunity?
[File Name or Event]
Emerson Confidential
27-Ju...
A Jumpstart-1 Possibility:

Shale Gas Opportunities for ISA
in North America
In Support of ISA Executive Board:
A Planning...
Shale Oil and Gas --- Global Opportunities


NA as the model



World Area overview



NA sales strategy



Production...
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Shale Gas Opportunities for ISA in North America

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  • Is:The following is a snapshot of the NA shale plays and the production seen from the different geologies.Mean:If you will notice NA has been blessed with liquids rich fields, as well as natural gas. Today the focus is on liquids due to the market pricing, but as the energy sector moves away from coal and nuclear power generation and NGL exports become a reality, natural gas will be the future ~ requiring midstream and downstream infrastructure.
  • Shale Gas Opportunities for ISA in North America

    1. 1. A Jumpstart-1 Possibility: Shale Gas Opportunities for ISA in North America In Support of ISA Executive Board: A Planning Mini-Workshop Session with Primer developed for ISA Executive Board Jan 25th-26th, 2014 Greensboro, NC Reference Sources: Jumpstart_ShaleGasOppt_ISAExecBoard_Jan25-26_2014bnn.ppt
    2. 2. Let’s build on our mini-workshop session from Nashville ISA Fall Leader’s Meeting  What-If Scenario for just one Business & Market Opportunity for future ISA Revenue Opportunity: Shale Gas & Oil Unconventional Investments next 20 years  Explored what Strategic Business Opportunity Attractiveness Matrix Analysis might look like  Suggested Ideas for a Process to Identify & Assess Next Waves of Opportunities  Let’s now explore as a brainstorming planning exercise how ISA could take the next steps for this Opportunity … a deeper-dive [File Name or Event] Emerson Confidential 27-Jun-01, Slide 2
    3. 3. ISA Incoming President Perspectives for 2014: From: Peggie Koon communications to Billy Bennett & NN, Dec 2013  “The Summit in January should be all about:     Helping us identify, execute, and measure new revenue streams; New ways to extend our ISA brand; Enhance our ISA value proposition; And/or to engage new audiences or grow membership”  “Let’s determine a couple of objectives/goals that the whole Society can work on throughout the year 2014 …  We would then identify champions who will own each objective;  Decide how these translate across the various entities in ISA into operational and tactical goals, so each group has specific tasks to go do, and;  Determine how success will be measured;  We’ll want to set expectations for work that should occur between now and June as well as expected report outs.” [File Name or Event] Emerson Confidential 27-Jun-01, Slide 3
    4. 4. Now I plan to build upon and leverage Peggie’s Jump Start 2013 Sessions …  Current ISA Value Proposition  Future Perspectives  ISA Strategic Index – Opportunity Attractiveness vs ISA Business Strengths [File Name or Event] Emerson Confidential 27-Jun-01, Slide 4
    5. 5. How Shale Gas Opportunity could support ISA Current Value Proposition [File Name or Event] Emerson Confidential 27-Jun-01, Slide 5
    6. 6. How Shale Gas Opportunity could support ISA Future Value Proposition [File Name or Event] Emerson Confidential 27-Jun-01, Slide 6
    7. 7. How Shale Gas Opportunity could map into ISA Next Gen Strategic Index [File Name or Event] Emerson Confidential 27-Jun-01, Slide 7
    8. 8. Let’s now do a deeper dive into Action Steps for this Business Opportunity …    Specific 9 steps & actions that could be pursued by ISA Sections, Divisions, and HQ Staff collaborations Initial thoughts on how this Opportunity translates into operations & tactical specific steps for each of the ISA Society organizational entities Proposed metrics on how we could measure progress & success, moving ahead into 2014-2015 [File Name or Event] Emerson Confidential 27-Jun-01, Slide 8
    9. 9. Navigational Flow-Chart of the 9 Steps Create ISA Value Proposition Create ISA Business Deal Framework Customized for this Opportunity (1-2 PPTs) Hi-level Market Oppt Assessment: For 3 Basin Plays initially (1-2 PPTs) Contd from above Contd from above Face-to-face Fact Finding meetings with key players in Shale Basin pilot org. Create ISA Business Oppt Attractiveness matrix vs ISA Strengths Additional face-to-face meetings with other key players in Pilot Basin Org structure Determine who best Champion in ISA to lead, structure and close 1st deal Roll out 1st successful deal in Shale Basin pilot and Celebrate Replicate, accelerate, & execute next X deals in North America [File Name or Event] Emerson Confidential 27-Jun-01, Slide 9
    10. 10. Navigational Flow-Chart of the 9 Steps Create ISA Value Proposition Create ISA Business Deal Framework Customized for this Opportunity (1-2 PPTs) Hi-level Market Oppt Assessment: For 3 Basin Plays initially (1-2 PPTs) Contd from above Contd from above Face-to-face Fact Finding meetings with key players in Shale Basin pilot org. Create ISA Business Oppt Attractiveness matrix vs ISA Strengths Additional face-to-face meetings with other key players in Pilot Basin Org structure Determine who best Champion in ISA to lead, structure and close 1st deal Roll out 1st successful deal in Shale Basin pilot and Celebrate Replicate, accelerate, & execute next X deals in North America [File Name or Event] Emerson Confidential 27-Jun-01, Slide 10
    11. 11. Capital Investment: $3.17 Trillion in 20102035 (per I.H.S. for Unconventional Gas Investments) [File Name or Event] Source: I.H.S. Report: The Economic Contributions of Unconventional Gas Development in State Economies, Dec 2012 & June 2012. Infrastructure Emerson Confidential Capital 27-Jun-01, Slide 11 are only for those immediate infrastructures supporting the Upstream E&P CapEx. Expenditures above
    12. 12. There Are Many Gas & Tight Oil Plays In NA [File Name or Event] Emerson Confidential 27-Jun-01, Slide 12
    13. 13. 3 Basins prioritized by:  Large O&G potential recoverable resources  Hi degree of CapEx Investment spending  Hi degree of future employment contribution  Good synergy with ISA local membership strengths to be leveraged  Have Consortium or Coalitions already working, incl Community Colleges
    14. 14. NA Shale Plays with Major O&G Operators Oil 14 Natural Gas NGL Source: KBR
    15. 15. Top Shale Basin Plays Ranking Source: EIA* Name of Shale Gas Plays and Shale Oil Plays Geographical Extent of Play Technical Recoverable Resources Potential Gas at TCF (Terra Cubic Feet) Technical Recoverable Resources Potential Oil at BBO (Billions of Barrels Oil) Area (square miles) Leased Area (square miles) UnLeased (i.e. Future Potential) Marcellus** PA, WV, Ohio 410.34 --- 10,622 84,271 Haynesville TX, LA 74.74 --- 3,574 5,426 Barnett TX 43.38 --- 4,075 2,383 Eagle Ford** TX 20.81 3.35 4,413 --- Bakken** ND, Montana --- 3.59 6,522 --- Monterey Santos CA --- 15.42 1,752 --- ~ 50 other remaining Gas, Oil & Liquids Plays in U.S. All over (see Map) 750.38 23.94 160,413 136,081 Total Lower 48 U.S. [File Name or Event] Source: EIA, U.S. Energy Information Administration, U.S. Dept of Energy, www.eia.gov, Review of Emerging Resources: U.S. Shale Gas and Shale oil Emerson Confidential Plays 27-Jun-01, Slide 15
    16. 16. Shale Basin Employment Contributions (from I.H.S. Vol 1, June 2012) 3 Basins employment impact:  In 2015, 793,000 are forecasted  In 2035, 1,654,000 are forecasted [File Name or Event] Emerson Confidential 27-Jun-01, Slide 16
    17. 17. Shale Basin CapEx (from I.H.S. Vol 1, June 2012) 3 Basins CapEx $ spend:  In 2020: $76,280,400,000 (@ 68% of U.S. Totals of $110.6 Billion) are forecasted  In 2025 : $85,229,300,000 (@ 70% of U.S. Totals of $122.7 Billion) are forecasted [File Name or Event] Emerson Confidential 27-Jun-01, Slide 17
    18. 18. Shale Basin CapEx (from I.H.S. Vol 1, June 2012) 3 Basins CapEx $ spend:  In 2020: $76,280,400,000 (@ 68% of U.S. Totals of $110.6 Billion) are forecasted  In 2025 : $85,229,300,000 (@ 70% of U.S. Totals of [File Name or Event] Emerson Confidential $122.7 Billion) are forecasted 27-Jun-01, Slide 18
    19. 19. Navigational Flow-Chart of the 9 Steps Create ISA Value Proposition Create ISA Business Deal Framework Customized for this Opportunity (1-2 PPTs) Hi-level Market Oppt Assessment: For 3 Basin Plays initially (1-2 PPTs) Contd from above Contd from above Face-to-face Fact Finding meetings with key players in Shale Basin pilot org. Create ISA Business Oppt Attractiveness matrix vs ISA Strengths Additional face-to-face meetings with other key players in Pilot Basin Org structure Determine who best Champion in ISA to lead, structure and close 1st deal Roll out 1st successful deal in Shale Basin pilot and Celebrate Replicate, accelerate, & execute next X deals in North America [File Name or Event] Emerson Confidential 27-Jun-01, Slide 19
    20. 20. Ideas for Specific Steps & Actions that could be pursued by ISA Sections, Divisions, & HQ Staff Suggested Steps for Shale Gas Opportunity: # 1: Create 2-3 PPTs describing the customized Shale Gas opportunity ISA Value Proposition for this Shale Gas Business Opportunity.  Working assumptions to Jump-start: From our initial research into the Marcellus Shale Gas Consortium & the Eagle Ford Coalition organizations … a major need and focus is on Workforce Development, Education & Training with Content supporting the Oil & Gas Company partners in collaboration with Regional Community Colleges in the Regions to accelerate your business objectives in Work force Development with your Partners & Community Colleges in the region # 2: Create 1 PPT describing the ISA business Framework for a desired perfect deal that could be structured with the Regional Coalitions/Consortium Chairmen/Presidents of these Shale Gas regional organizations and entities # 3: Conduct high-level market opportunity assessment (leverage attached “Shale Gas Primer”) for each of 3 Shale basin Plays in North America (Marcellus, Eagle Ford, Bakken).  Develop simple list of survey questions to ask the Chairman or President of the Coalitions or Consortiums to probe on their Needs, Workforce Development, their Objectives & Goals, their O&G Partner structure, relationships with Community Colleges in the Region;  Explore their receptivity to the ISA Value Proposition;  Have them recommend who else your could talk to in the Region at the Oil & Gas Companies (Director HR focused on Education & Training) and [File Name or Event] community Emerson Confidential Colleges Technical programs (Chancellors). 27-Jun-01, Slide 20 Example of Deliverables:
    21. 21. ISA Value Proposition for Shale Gas Opportunity in Your Region  ISA can help accelerate and enhance your Workforce Development through collaborative partnerships with: – Your regional Oil & Gas Companies; – Your regional Affiliates; – Your regional Community Colleges; – Your regional Economic Development Partners  We accelerate by leveraging from ISA expertise in: Educational & Training, certification standards, skills, experiences, talents and ISA brand reputation [File Name or Event] Emerson Confidential 27-Jun-01, Slide 21
    22. 22. Tag-teaming to Jump Start the process …     [File Name or Event] Emerson Confidential 27-Jun-01, Slide 22 Tag-teaming with Tim Feldman: Document ISA past successes with Community Colleges in area of Education & Training Essence of the 3 Deals: ISA Value Proposition, other Partners (AF), incremental revenue streams, other tangible and intangible benefits New request for Red River Shale Basin in Bakken Regional Play Ideal Framework Model of what ISA would love to see as a “future deal”
    23. 23. ISA Desired Perfect Deal for Shale Gas Opportunity in Your Region  With Chairman/President of Shale Gas Coalitions or Consortiums  With regional Oil & Gas Companies  With regional Community Colleges  With regional Affiliates  With regional Economic Development organizations    [File Name or Event] Emerson Confidential 27-Jun-01, Slide 23  Tag-teaming with Tim Feldman: Document ISA past successes with Community Colleges in area of Education & Training Essence of the 3 Deals: ISA Value Proposition, other Partners (AF), incremental revenue streams, other tangible and intangible benefits New request for Red River Shale Basin in Bakken Regional Play Ideal Framework Model of what ISA would love to see as a “future deal”
    24. 24. Tag-teaming to Jump Start the process … Cut/Paste NN Marcellus Org Structure chart here from “Primer”  Face-to-face Fact Finding Visits and Meetings in Marcellus Shale Basin Region with Key Players [File Name or Event] Emerson Confidential 27-Jun-01, Slide 24  See draft template in NN Primer
    25. 25. Ideas for Specific Steps & Actions that could be pursued by ISA Sections, divisions, & HQ Staff Suggested Steps for Shale Gas Opportunity: Example of Deliverables: # 4: From Step # 3, Identify Chairman or President of Top 3 basin coalitions or Consortiums. Set up face-to-face meetings with Chairman to dive deeper on fact finding visits. Perhaps spend 2-3 days in Region with Qs & As.  Develop additional list of survey questions to ask the Chairman or President of the Coalitions or Consortiums to probe on their Needs, Workforce Development, their Objectives & Goals, their O&G Partner structure, relationships with Community Colleges in the Region;  Explore their receptivity to the ISA Value Proposition;  Have them recommend who else your could talk to in the Region at the Oil & Gas Companies (Director HR focused on Education & Training) and community Colleges Technical programs (Chancellors). # 5: Use findings from Step # 4 to develop a Business Opportunity Attractiveness Matrix vs ISA Value Proposition.  Apply Peggie’s 9 metrics on Business Opportunity attractiveness vs 16 metrics of ISA value Proposition. Overlay opportunity for ISA future Revenue streams. # 6: With Guidance by ISA HQ Staff, use and leverage local ISA Sections relationships in the specific regions to collaborate with additional face-to-face meetings with the Shale Basin organizational structures (i.e. Marcellus, Eagle Ford, Bakken).  Leverage the Shale Basin Primer and the initial working draft of the Shale Basin Organizational Structure with the Key Players Mapping;  Explore their receptivity to the ISA Value Proposition;  Have them recommend who else your could talk to in the Region at the Oil & [File Name or Event] Gas Companies (Director HR focused on Education & Training) and Emerson Confidential community 27-Jun-01, Slide 25 Colleges Technical programs (Chancellors). Cut/paste NN Draft of Shale Basin Org Structure in “Primer”
    26. 26. Ideas for Specific Steps & Actions that could be pursued by ISA Sections, divisions, & HQ Staff Suggested Steps for Shale Gas Opportunity: Example of Deliverables: # 7: From Steps # 4-6, determine who is the best Champion within the ISA organization to structure the Sales & Marketing approach and actions required to “close a deal” with the specific Shale Gas Regional entities. Cut/paste NN Draft of Shale Basin org Structure from “Primer”  Suggest select individual with good Business Development skills and experience;  Initially target Chairman or President of the Coalition or Consortium in the Marcellus, Eagle Ford and Bakken basins;  Sell them on the ISA Value Proposition;  Use them as an Advisor on how to “close the deal” with other entities in the Coalition or Consortium. Do they have the ultimate Authority to close the deal? Meet with key Community College Chairman of Automation Technology curriculum and potential O&G partners in the Area to get their participation. # 8: Roll out the 1st successful “Deal” … Celebrate! # 9: Using lessons learned from 1st deal … structure 2nd deal with another Shale Basin Coalition Chairman or President … then continue to other Top 7+ Basins in North America.  Using lessons learned, simplify Steps #1-8 to see how the process can be accelerated;  Replicate for as many more Shale Basins in North America that makes good business sense for ISA Management;  In 5-7 years, after observing how the Shale Gas & Oil Basin technology is being leveraged in International World Regions … decide if it makes sense for ISA to go Global with this Shale Gas & Oil initiative to other World Regions … [File Name or Event] leveraging the Emerson Confidential ISA Global Brand plus the experiences learned in North America. 27-Jun-01, Slide 26 Cut/paste NN Download of Marcellus Shale Coalition web page
    27. 27. Initial Thoughts on how this translates into Operational & Tactical Next Steps for each ISA entity Steps in this Opportunity Development Who Would be Involved in this Step? Who is Passionate to be Champion/Leader of this Step? Due Date for Deliverable Draft? Report Outs? Accelerated Review by ISA Leadership Board with Go/No Go to Next Step? # 1: Create 2-3 PPTs for ISA Value Proposition for Shale Gas Oppt. ISA HQ Staff with Regional Sections and Divisions input TBD TBD TBD # 2: Create 1-2 PPTs on ISA Business Framework for perfect deal to Partners, Community Colleges, Regional Coalition Chairman ISA HQ Staff with Regional Sections and Divisions input TBD TBD TBD # 3: Hi-level Market Oppt assessment in 3 Basin Plays (Marcellus, Eagle Ford, Bakken) ISA HQ Staff with Regional Sections and Divisions input TBD TBD TBD # 4: Face-to-face meetings with Chairmen in 1st Regional Shale Basin to assess opportunities ISA HQ Staff with Regional Sections and Divisions input TBD TBD TBD # 5: ISA Business Oppt Attractiveness Matrix ISA HQ Staff TBD TBD TBD # 6: Additional face-to-face meetings with other key organizational players in the Shale Basin region ISA HQ Staff with Regional Sections and Divisions input TBD TBD TBD # 7: Determine who best Champion is in ISA organization to structure and close a deal TBD TBD TBD TBD # 8: Roll out 1st successful deal TBD TBD TBD TBD #9: Replicate, accelerate, and execute next x deals in North America [File Name or Event] TBD TBD TBD TBD Emerson Confidential 27-Jun-01, Slide 27
    28. 28. Suggested Ideas for a Process to Identify & Assess Next Waves “Casting the Net” Identification of Future Opportunities Gas Shale Screening & Prioritization with Opportunity Potential $ Downstream Industries Shale Impact Local ISA Sections Top 5 Trends Shale Liquids Gas Shale Strategic Partners Pipelines Auto Manufacturers Talk to Thought Leaders & Potential Partners @ Oppt & ISA Value Proposition Comm Colleges Action Plans & Investments & Pilots Roll-out & Launch & Tweaks Gas Shale Strategic Partners Comm Colleges LNG Gas To Liquids Food & Beverage Power Conversions Coal to Nat Gas Pharma Mining Artic O&G Comm Colleges Nanotech Biotech Stage [File Name or Event]Go/No Go to Emerson ConfidentialNext Stage 1 27-Jun-01, Slide 28 Stage 2 Go/No Go to Next Stage Stage 3 Go/No Go to Next Stage Stage 4 Go/No Go to Next Stage Stage 5
    29. 29. Jumpstart-2: Shale Gas Business Primer in North America In Support of ISA Executive Board: A Planning Mini-Workshop Session with ISA Executive Board Jan 25th-26th, 2014 Greensboro, NC Reference Sources: Jumpstart2_ShaleGasPrimer_ISAExecBoard_Jan25-26_2014bnn.ppt
    30. 30. Example of Eagle Ford Consortium Org Structure (@ www.eaglefordconsortium.org/committees/ ISA Business Opportunity Education & Workforce Development: Composed of educational institutions, school districts, workforce development and recruitment organizations. This group focuses on current & future workforce education needs and works closely with local high schools, community colleges & universities. Education & Workforce Community Investment: Composed of land owners, company philanthropy departments and foundations, and others willing to invest in the Eagle Ford Region. This group focuses efforts on creating partnerships to maximize investments into the region and for worthwhile projects of value to communities. Community Investment Industry: Composed of producers, service companies and industry associations. This group works closely with all other committees to forecast current and future labor needs, skill sets that will be required and educating the public on the oil and gas [File Name or Event] industry in the region. Emerson Confidential 27-Jun-01, Slide 30 Industry Eagle Ford Consortium* Infrastructure & Natural Resources Community & Economic Development *Steering Committee: The Eagle Ford Steering Committee is composed of a Chairman, Vice Chairman and Co-Chairs from each of the six Subcommittees above Infrastructure & Natural Resources: Composed of elected officials, utility companies, land owners, housing related entities and those involved with natural resources. This group focuses on matters related to development and maintenance of community infrastructure and good stewardship of resources. Community & Economic Development: Composed of chambers of commerce, economic development groups, small business development centers and organizations dealing with social services. This group focuses on coordinating and implementing efforts between groups, identifying gaps and improvements areas for economic progress, so as to maximize the benefits from the Eagle Ford Shale development.
    31. 31. Marcellus Shale Coalition (MSC) Org Structure (@ www.marcelluscoalition.org/about Gas & Oil Companies Investing in that Specific Region HQ Staff Affiliates in MSC Coalition Region (called Associate Members @ ~220+) Additional Companies that prosper as result of O&G Investment in Marcellus Major ones: • • • • Chesapeake Range Resources Dominion Talisman Atlas Energy EOG • • • • [File Name or Event] Emerson Confidential 27-Jun-01, Slide 31 • • • Water and water treatment • Specialty Chemicals • Engineering & Construction Services Chemicals • Power Utilities • Pipelines Rail transportation • • Transportation (Trucking, Rail) Downstream Industries & Companies feeding the Gas & Oil Companies: • • • • (called Board Members @ ~45+) Executive Board Upstream Industries & Companies feeding the Gas & Oil Companies Examples: Services Community Colleges : Education & Training for 1 & 2 yr degrees. Major Colleges mentioned: Community & Technical College System of West Virginia Pierpoint Community & Technical College in Fairmont Northern West Virginia Community & Tech College in Wheeling, Weirton, New Martinsville, WV Penn College and WCCC (Westmoreland County CC) in PA are hubs for Marcellus, $4.9M grant from U.S. Dept of Labor Community College of Allegheny County (CCAC) and Butler County Community College in PA partnering with Career Link to identify jobs
    32. 32. Community Colleges in PA, WV, Ohio • Navarro Community College • Pennsylvania College of Technology • Stark State College • Penn College in Williamsport • Community & Technical College System of WV • Northern WV Community & Tech College (Wheeling, Weirton, or Event] [File Name New Martinsville) Emerson Confidential Ones mentioned in Press Releases of various web searches in Marcellus Region @ Shale Gas development 27-Jun-01, Slide 32
    33. 33. All have Instrumentation content … [File Name or Event] Emerson Confidential 27-Jun-01, Slide 33
    34. 34. Face-to-face Fact Finding Visits and Meetings in Marcellus Shale Basin Region Objectives of what are we trying to find out? Whom Specifically should be met & interviewed for fact findings? Explain nature of the Marcellus Shale Coalition (MSC) organization; top 3-5 key players in the Oil & Gas industry in region with specific names of contacts at each O&G Company; how is Coalition funded; top Board Members; top 2-3 players in Support industry, such as Halliburton; top 2-3 Community Colleges involved in Work force development and training and contact names. • President, Marcellus Shale Coalition, Dave Spigelmyer, 412.706.5160, 24 Summit Park Dr., Pittsburg, PA • CEO of MSC Shale Coalition, Kathryn Klaber Meet with VPs of Operations or VP of HR of the top 3-5 key Oil & Gas companies (Range Resources, XTO, others). Find out their major challenge and workforce development needs in future. Also explore how they fund the Coalition discretely. Recommendations of who at Community Colleges we should be working with. • K. Scott Roy, Chairman MSC Exec Board, VP Range Resources • Karen Matusic, XTO Energy • Barb Sexton, Chesapeake Energy Corp • Others above would recommend Meet with Chancellors or VPs of Community Colleges in the area, that already have programs underway, to understand their specific Automation Technologist training curriculum and programs. Explore future needs and their receptivity to the ISA Value Proposition. • Penn College in Williamsport • Westmoreland County Community College in PA • James Skidmore, Chancellor of Community & Technical College System of West Virginia • Others in ShaleNet.org would recommend Meet with any of the Economic Development Councils in the Region that might have access to either Federal grant funding programs, example Department of Labor, or State grant funding programs, designated by the Governor of the State for Workforce Development. • Allegheny Conference on Community Development • Community Outreach Managers (4) on Marcellus Shale Coalition Staff • Others that Dave would recommend and refer us to i.e. his Community Outreach Managers (4 in MSC) Optional … for those other Community Colleges in the Region that do not have Automation Technologist programs already in place … meet with Chancellors or VPs in those Colleges to explore their future needs and ISA Value Proposition to accelerate their certifications and program development for their future revenues.. • See NN list of Community Colleges in the Primer for PA, WV, & Ohio for Marcellus Shale Coalition Region Summarize all the above and overlay to the ISA Value Proposition to determine what [File Name or Event] the ISA future business opportunity might be in the Marcellus Shale Region • Champion assigned within ISA organization to lead this Initiative Emerson Confidential 27-Jun-01, Slide 34
    35. 35. Let’s run this Shale Gas Opportunity through filter of: Peggie’s Roadmap 6 Metrics [File Name or Event] Emerson Confidential 27-Jun-01, Slide 35
    36. 36. Let’s run this Shale Gas Opportunity through filter of: Peggie’s Roadmap 6 Metrics What does this look like if we decided as a “whole” Society to focus on one or two things? Initial Ideas & Thoughts: How might we operate differently?  Could offer opportunity to develop a customized ISA Value Proposition specifically tailored for Targeted Entities and a Target Strategic business opportunity, i.e. Shale Gas & Oil Education & Training partnership with Regional Consortiums. With whom might we collaborate?  Chairmen/CEOs of Shale Basin Coalitions/Consortiums  O&G Company VPs of Operations & Directors of HR/Education  Community Colleges Chancellors/VPs for 2-yr Automation Professionals Curriculum & Programs  Local ISA Sections How might we innovate?  Focus on Customized Value Proposition for Target Entities  New Innovation in ISA Partnership Deal Making acumen and Business Development skills  Creative new Intimate involvement with Local Sections and Regional Industry Divisions working closely with HQ Staff How might this affect ISA value Proposition?  See NN’s overlay to Current & Future ISA Value How might this affect ISA membership?  In 2020, I.H.S. estimates employment contribution of Shale Gas & Oil in U.S. will be ~1,663,000. Working assumption: Assume automation professionals will be 7% of this @ ~116,400.  How many of these could ISA capture with new membership? [File Name or Event] Emerson Confidential 27-Jun-01, Slide 36
    37. 37. 5-Yr Opportunity Attractiveness $Millions 2014-2019 Strategic Business Opportunities Attractiveness Matrix Analysis $3.0 Sector Attractiveness: to Opportunity A ISA for future Revenue Streams • Total global size of sector next 5 yrs cumulative ($M) • Growth trend CAGR next 5 yrs • Strength ISA value-add vs customer choices for substitutes • Investment needs • Risk Factor of sector $2.0 Opportunity D $1.0 ISA Value Proposition i.e. ISA Business Strengths Opportunity H $0.0 0 Low 1 2 3 4 5 6 7 8 9 10 Hi ISA Value Proposition (aka ISA Business Strengths) • Degree of Product & Services Fit today • Existing Relationships • Current Strength of Coverage with Resources • Geographical alignment & presence • Existing Partnerships
    38. 38. Navigational Flow-Chart of the 9 Steps Create ISA Value Proposition Create ISA Business Deal Framework Customized for this Opportunity (1-2 PPTs) Hi-level Market Oppt Assessment: For 3 Basin Plays initially (1-2 PPTs) Contd from above Contd from above Face-to-face Fact Finding meetings with key players in Shale Basin pilot org. Create ISA Business Oppt Attractiveness matrix vs ISA Strengths Additional face-to-face meetings with other key players in Pilot Basin Org structure Determine who best Champion in ISA to lead, structure and close 1st deal Roll out 1st successful deal in Shale Basin pilot and Celebrate Replicate, accelerate, & execute next X deals in North America [File Name or Event] Emerson Confidential 27-Jun-01, Slide 38
    39. 39. So … where does this Group want to go next with this Business Opportunity? [File Name or Event] Emerson Confidential 27-Jun-01, Slide 39
    40. 40. A Jumpstart-1 Possibility: Shale Gas Opportunities for ISA in North America In Support of ISA Executive Board: A Planning Mini-Workshop Session with Primer developed for ISA Executive Board Jan 25th-26th, 2014 Greensboro, NC Thank you … Any Questions? Reference Sources: Jumpstart_ShaleGasOppt_ISAExecBoard_Jan25-26_2014bnn.ppt
    41. 41. Shale Oil and Gas --- Global Opportunities  NA as the model  World Area overview  NA sales strategy  Production Optimization  Who’s next? Technically Recoverable Resource Shale gas 7,299 trillion cubic feet Shale/ tight oil 345 billion barrels Shale Oil & Gas is not unique to North America, but differing geologies, politics and infrastructure will make it more difficult to produce in all known formations. Source: United States basins from U.S. Energy Information Administration and United States Geological Survey; other basins based on data from various published studies.

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