This document provides an overview and forecast of opportunities, trends, and projects in the oil and gas midstream/downstream sectors from 2015-2017. It summarizes that total investment in pipelines is forecast to be $106.96 billion, with the largest amount in 2017, while investment in production is forecast to be $65.82 billion, with the largest amount occurring in 2014. The document also outlines various LNG export terminal projects totaling $76.6 billion and increases in natural gas processing capacity requirements regionally through 2023.

1. OPPORTUNITIES, TRENDS & FORECASTS
FOR O&G – MIDSTREAM/DOWNSTREAM
PROJECTS AND WORKFORCE
Michael Bergen Executive VP, Industrial Info Resources
KEYNOTE
STRATEGIES & OPPORTUNITIES: MANAGING
IN A TURBULENT OIL & GAS WORLD

2. Workforce Next Spring Summit – 2015
Present ed by
Industrial Info Resources, Inc.
Industrial Market Outlook

3. IIR provides market intelligence that can be leveraged across all departments
Website Resources

4. IIR’s Industrial Market Coverage
O & G PRODUCTION
ONSHORE AND OFFSHORE OIL & GAS PROCESSING
LNG EXPORT TERMINALS, GAS-TO-LIQUIDS
O &G PIPELINES
ONSHORE AND OFFSHORE CRUDE OIL, CONDENSATE,
GAS & REFINED PRODUCTS
O & G TERMINALS
STORAGE FACILITIES, LNG RECEIVING & REGASIFICATION
PETROLEUM REFINING (HPI)
REFINERIES, LUBE OIL PLANTS AND ASPHALT PLANTS
CHEMICAL PROCESSING (CPI)
PETROCHEMICAL, AGRICULTURAL, INDUSTRIAL GASES,
ORGANIC & INORGANIC CHEMICALS
PHARMACEUTICAL & BIOTECH
MANUFACTURING FACILITIES AND RESEARCH LABORATORIES
ELECTRIC POWER
GENERATION, TRANSMISSION & DISTRIBUTION
METALS & MINERALS
MINES, MILLS AND PROCESSING PLANTS
INDUSTRIAL MANUFACTURING
DURABLE AND NON-DURABLE GOODS MANUFACTURING
FOOD & BEVERAGE
PROCESSING & DISTRIBUTION/STORAGE FACILITIES
PULP, PAPER & WOOD
MILLS, FOREST PRODUCTS & CONVERTING PLANTS
ALTERNATIVE FUELS
ETHANOL, BIODIESEL, COAL GASIFICATION, FUEL PELLETS

5. Latin America
8,906 Projects
$1.23 Trillion
18% Growth
Africa
2,854 Projects
$694 Billion
67% Growth
Oceania
2,414 Projects
$710 Billion
33% Growth
Asia
37,744 Projects
$6.66 Trillion
37% Growth
Europe
14,855 Projects
$2.14 Trillion
34% Growth
North America
18,620 Projects
$2.41 Trillion
15% Growth
Worldwide Coverage Represents a 30% increase (Feb 2014 to Feb 2015).
Flags Represent IIR’s World Regional Research Offices
Our Global Reach
87,388 Projects in Progress worth $13.93 trillion
Based on active projects with future completion dates and QC’d in the last 12 months
Latin America
10,888 Projects
$1.3 Trillion
17% Growth
4

6. 42%
37%
41%
28%
19%
30%
18%
17%
20%
29%
30%
29%
5%
6%
6%
10%
14%
8%
7%
10%
7% 5%
7%
7%
6%
4%
4% 5%
7%
4%
13% 16%
12% 13% 15% 15%
8% 8% 7% 8% 8% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015
Pharmaceutical
Industrial Mfg
Food & Beverage
Pulp & Paper
Metals & Minerals
Chemical
Oil & Gas
Power
65% 60% 67% 67% 63%
United States
How Has Industry Spending Shifted?
Energy & Chemical Maintain 60+% of Industrial Construction Activity
Pre-fallout
observation
$300 billion
Proposed

7. Oil & Gas Production – Industrial Market Spending Driver
7 of the 12 Industries are benefitting from unconventional production
Bakken, Eagle Ford,
Permian, Utica
Marcellus, Niobrara
INPUT BENEFICIARIES OUTPUT BENEFICIARIES
6
Drill Pipe
Fabrication
Steel Pipe/
Tube Mills
Fracturing
Equipment
Producers
Proppant
Producers
High-
Velocity
Fluids
Frac Sand
Mines
Midstream
Processing
Ethylene
Capacity
Storage
TerminalsFertilizer
Plants
LNG Export
Market
Gas to
Liquids
Petroleum
Refineries
Manufacturing
Electronics
Ceramics
Textile
Micro-LNG
Domestic Market
Pipelines
Automotive
Downstream
Petrochem
Methanol
Power
Generation
Production Field
Still Viable with Low Crude Prices
2,558 Projects @ $182 billion
2007 - 2014
Paints
Coatings
Chemical
Industry
Rubber &
Plastic Good
?
?
?

8. -1.5
-1
-0.5
0
0.5
1
1.5
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Global Supply / Demand Trends
Versus WTI/Brent Spot Price
IEA February 2015
WTI Spot $/bbl Brent Spot $/bbl
Short Term Supply / Demand Outlook
Marginal Price Increases
7
Demand>Supply Short Term Supply Trends
• Crude prices stabilized following early Feb gains –
Brent higher than WTI.
• Price rebound off falling US rig counts and
“opportunistic buyers” – Contango traders
• US rig count declines not yet filtered into lower US
production growth.
• Global supply rose by 1.3 m/bpd Yr-on-Yr to an
estimated 94 m/bbl/d in Feb.
• Led by a 1.4 m/bpd gain in non-OPEC production.
• US supply revised upwards by 300 k/bpd for Q4
2014 and Q1 2015 also revised up.
• OPEC crude edged down by 90 k/bpd - loses in Libya
and Iraq offset higher Saudi, Iranian and Angolan
production.
Supply>Demand
Axis shows difference (mn/bpd) between global crude production and global demand.
-ve indicates demand greater than daily
+ve indicates supply volumes exceed demand.
Mn bpd
Sources: IEA, EIA
Short Term Demand Trends
• Global Demand bottomed out in Q2 2014 and since
steadily risen. Yr-on-Yr gains of 0.9 m/bpd for Q4
2014 and 1m/bbl/d for Q1 2015.
• Global demand forecast raised 75 k/bpd to 1 m/bpd.
2015 average to be approx. 93.5 m/bpd.
• Global Refining throughputs raised for H1 2015 but
annual gains are forecast to be down from 2.2
m/bpd in Q4 2014.
• Storage build up in US, China, India, Europe, S.
Korea, Africa, Japan (70% capacity).

9. North America Petroleum Refining Industry
U.S. Crude Imports
© 2015, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
2,129
829
350
500
1,000
1,500
2,000
2,500
3,000
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
ThousandsofBarrelsperDay
Crude Imports into the US Gulf Coast (PADD 3)
Heavy
Medium
Light

10. Historically Competitive Gas Pricing
Gas Fundamentals are Reshaping Gas Investment Strategies
9
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2005M01
2005M07
2006M01
2006M07
2007M01
2007M07
2008M01
2008M07
2009M01
2009M07
2010M01
2010M07
2011M01
2011M07
2012M01
2012M07
2013M01
2013M07
2014M01
2014M07
2015M01
Natural Gas Prices
2005 – March 2015
World Bank
Series1 Series2 Series3
Source: World Bank Pink Sheets
Japan LNGEuropean
Nat Gas
US Nat
Gas
Variable Trending
Divergent
US shale supply providing cost advantage for US
Chemicals Producers:
Massive ethylene build out planned
Export driven capacity
US Lake Charles
$3.5
UK
$9.3
Belgium
$8.9
India
$14.3
Mexico
$14
Brazil
$14.2
Argentina
$14.5
Japan
$15
Korea
$14.8
China
$14.1
Spain
$12.1
$7.16
Worldwide LNG Landed Prices Oct 2014
Versus FERC March 2015 estimates
U$/MMBtu
US Cove Point
$2.8
Source: US FERC
$2.7
$2.36
$6.63
$6.51
$6.92
$7.2
$6.9
$6.6
$7
$7
$6.79
But natural gas economics are changing.
US cost advantage eroded / swing in naphtha based
foreign crackers
US domestic demand insufficient to absorb new planned
ethylene
© 2015, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479

11. $76.6 Billion LNG
Export Industry
Build Out
Oil & Gas IndustryOil & Gas Production Industry Breakout
5.04
12.14
16.02
23.800.00
$0.63
$2.14
$13.56
$15.19 $7.74
$4.64
$0
$5
$10
$15
$20
$25
$30
$35
2014 2015 2016 2017
$DollarsinBillions
Oil & Gas Production
GTL
LNG
Company LNG Liquefaction Plant Location Cost
1 Cheniere Energy Incorporated Sabine Pass, Louisiana $9.0 bn
2 Sempra LNG Cameron, Louisiana $12.0 bn
3 Lake Charles LNG (Trunkline) Lake Charles, Louisiana $9.0 bn
4 Cheniere Energy Incorporated Corpus Christi, Texas $9.0 bn
5 Freeport LNG Development LP Freeport, Texas $8.0 bn
6 Golden Pass Products LLC Sabine Pass, Texas $3.3 bn
7 Annova LNG Brownsville, Texas $3.7 bn
8 NextDecade (Train 1 only) Brownsville, Texas $8.0 bn
9 Gulf LNG Energy LLC Pascagoula, Mississippi $8.0 bn
10 Dominion Transmission Inc Cove Point, Maryland $4.1 bn
11 Southern LNG Inc (Train 1 only) Elba Island, Georgia $2.5 bn
What’s
included in our
forecast for
LNG?
GTL ? Sasol & G2X
NGL Fractionation Bubble
© 2015, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479

12. 155.0
160.0
165.0
170.0
175.0
180.0
185.0
190.0
195.0
200.0
205.0
64.0
65.0
66.0
67.0
68.0
69.0
70.0
71.0
72.0
73.0
74.0
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
ProcessingCapacity(inBcf)
MonthlyProduction(inBcf/d)
Natural Gas Production vs. Processing Capacity
Monthly Production Processing Capacity
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
ProcessingCapacity(inBcf)
MonthlyProduction(inBcf/d)
Northeast Natural Gas Production vs. Processing Capacity
Monthly Production Processing Capacity
© 2015, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
Oil & Gas Industry – Upstream/Midstream
Natural Gas Processing Overcapacity?

13. Oil & Gas Industry – Upstream/Midstream
Regional Need for Natural Gas Processing Capacity
© 2015, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
Total US Gas Production
Pipelines – Oct. 2014
TIV
2012 $11.53 B
2013 $10.13 B
2014 $11.15 B
2015 $21.52 B
2016 $16.99 B
2017 $35.62 B
Total $106.96 B
Pipelines – Jan. 2015
TIV
2012 $11.53 B
2013 $10.13 B
2014 $9.27 B
2015 $7.29 B
2016 $27.39 B
2017 $27.81 B
Total $103.28 B
Production – Oct. 2014
TIV
2012 $15.26 B
2013 $8.45 B
2014 $13.82 B
2015 $13.86 B
2016 $8.38 B
2017 $6.03 B
Total $65.82 B
Production – Jan. 2015
TIV
2012 $15.23 B
2013 $8.45 B
2014 $14.23 B
2015 $7.69 B
2016 $4.79 B
2017 $11.29 B
Total $67.4 B
1993 2003 2013 2023
BCF/d 45.7 49.0 66.3 84.7

14. Oil & Gas IndustryOil & Gas Industry – Upstream/Midstream
Crude Oil Transportation
Total Proposed Pipeline Capacity 18.9 Million Barrels
© 2015, Industrial Info Resources, Inc., 2277 Plaza Drive Suite 300, Sugar Land, Texas 77479
October 2014
Miles TIV
2012 1,175 $4,554
2013 1,515 $5,234
2014 4,802 $8,961
2015 3,952 $8,893
2016 4,094 $17,831
2017 790 $395
Total 16,328 $45,868
January 2015
Miles TIV
2012 1,175 $4,554
2013 1,515 $5,234
2014 3,645 $9,600
2015 5,119 $10,249
2016 1,680 $24,460
2017 1,826 $11,077
Total 14,960 $69,436
15 MM BBLs of crude storage
capacity was added in 2014
Transportation Costs (per barrel):
Gathering
Canada to Houston
by Railby Pipeline
by Pipeline by Truck
$0.50 $2.00
$5 - 6.00 $12.00

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