ENTERPRISE PRODUCTS PARTNERS L.P. WORLD PETROCHEMICAL CONFERENCE March 25, 2015 Jim Teague Chief Operating Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
ARE WE BUILDING OUR HOUSES ON A STRONG FOUNDATION ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 2
THE OIL PRICE DOWNTURNKSA, KUWAIT AND UAE TRIP A FRAGILE MARKET Summer 2014: Energy economists including IEA begin 120 to publish reduced demand forecasts Oct and Nov as economies in 2014: KSA 110 China and Japan unusual…
EPD IS MAKING LARGE SHALE INVESTMENTS BOTH SUPPLY AND DEMAND PROJECTS 33B Organic Investment / 24B Acquisitions Since IPO Major Growth Capital Investment Oiltanking 2step acquisition 9.0 completed Oct 14 & TEPPCO acquisition /…
OTHER MLPS ARE MAKING INVESTMENTS AS WELL (APPROACHING 200 BILLION) in Millions Organic Growth Cap Ex By MLPs 45,000 40,000 35,000 30,000 Other 25,000 Wholesale Distribution 20,000 NG & NGL Pipes & Storage 15,000…
THE CHEMICALS INDUSTRY IS ALSO MAKING VERY LARGE BETS ON U.S. SHALES American Chemistry Council (ACC) is tracking 225 U.S. Chemical projects valued at 137 billion. They estimate that 60% of these new investments is from foreign…
NATURAL GAS TO CRUDEA KEY DRIVER OF U.S. PETROCHEMICAL EXPANSIONS Natural Gas as a Percent of WTI 140% Does the U.S. have enough 120% Natural Gas and NGLs to keep this ratio lowYes 100% Do producers have sufficient markets…
GLOBAL ETHYLENE CASH COST U.S. ETHANE STABLE AND PLENTIFUL Cash Cost CPP 70 Asia Naphtha 60 50 40 NWE Naphtha 30 U.S. Propane 20 10 U.S. Ethane 0 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Source: EPD…
PROPANE PRICES PLUMMET EVEN AS U.S. BECOMES THE WORLDS LARGEST EXPORTER The U.S. has surpassed Saudi Arabia as world leader in LPG exports Exports allow production growth to proceed; without propane exports the entire NGL value…
CRUDE, NGL, GAS PRODUCTION SOARS (2015, WHAT HAPPENS NEXT) 13,000 80 12,000 75 11,000 70 Crude / NGLS Nat. Gas MBbl/d 10,000 Bcf/d 65 9,000 60 8,000 7,000 55 6,000 50 2008 2009 2010 2011 2012 2013…
EPD CRUDE FORECASTS2 MMBPD LOWER BUT RESOURCES ARE STILL HERE MMBPD U.S. Crude and Condensate Sensitivities 13 13 85 12 12 This Crude and the Associated NGLs are still here 7075 11 11 6065 10 10 9 9 Oct14 8 Jan15 High 8…
DEMAND DOMINATED BY EMERGING MARKETSU.S. FLAT AT BEST World Liquid Hydrocarbon Consumption by Region MMBOED IEA WOE 2014, Current Policies Scenario 40 IEA base case expects 30 MMB global 35 demand growth by 2040; nonOPEC…
WHY COULDNT OPEC PERFORM Why, despite price increases from 30 to 100+, couldnt OPEC meet demand, opening the door for U.S. and Canada NonConventional development Does OPEC have low cost reserves and the appropriate tools: culture,…
THE WORLD IS A DANGEROUS PLACE GLOBAL MARKETS NEED U.S. SUPPLIES Norway Canada Russia OPEC Production MBPD United States Saudi Arabia 9,700 Iraq Iran Kuwait Algeria Libya Iraq 3,900 Mexico Saudi Qatar Iran 2,800 Arabia…
NORTH AMERICA WELL SUPPLIED BEFORE IMPORTS AND MORE RENEWABLES SOMETHINGS GOT TO GIVE On a barrel balance, by 2020 the U.S. & Canada should be self sufficient in crude (assuming no exports) ButImports of Medium and Heavy from…
EXPORTSKEY TO KEEPING U.S. SUPPLIES COMING Crude Tank Expansion New Finger Pier Docks ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16
THANK YOU ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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