This document summarizes the North American downstream market and construction outlook for an EPC contractor. It finds that the forecasted market size for downstream construction projects in North America will grow from $70 billion currently to $135 billion. The largest sectors are expected to be ethylene, LNG, and plastics. However, it notes that project economics remain challenged and the project supply chain is ineffective. It calls for a focus on construction technology and productivity improvements to better ensure project success and capital efficiency.

1. North American Downstream Market & Construction Outlook
EPC CONTRACTOR VIEW OF THE
DOWNSTREAM MARKET &
CONSTRUCTION OUTLOOK
November 14, 2016
Dean Wenner
EVP & General Manager

2. North American Downstream Market & Construction Outlook

3. Ethylene
20%
LNG
64%
Plastics
9%
Petrochemicals
3%
Methanol
4%
North American Downstream Market & Construction Outlook
Ethylene
45%
LNG
28%
Plastics
4%
Petrochem
7%
Methanol
16%
$70B
$100B
Ethylene
34%
LNG
47%
Plastics
6%
Petrochem
4%
Methanol
9%
$135B
Backlog + Planning
Forecast

4. North American Downstream Market & Construction Outlook

5. North American Downstream Market & Construction Outlook

6. North American Downstream Market & Construction Outlook

7. 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?

8. • 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 right
Get the materials right
Project & Construction Management Leadership
Empower Construction to be GREAT

9. Significant Demand anticipated
Healthy Portfolio of projects
Business case
Performance improvement
North American Downstream Market & Construction Outlook
Strong Outlook
Let’s make it stronger!