UBS Global Oil and Gas Conference Austin, Texas May 25, 2011 Peter Ragauss Senior Vice President and CFO Baker Hughes Incorporated 2010 Baker Hughes Incorporated. All Rights Reserved.
From People, Infrastructure and Technology People Infrastructure Technology 3 2011 Baker Hughes Incorporated. All Rights Reserved.
to Transformation Reservoir Reorganization Supply Chain BJ Services 4 2011 Baker Hughes Incorporated. All Rights Reserved.
to Execution International Margins Leader in the Worlds Leading Margins in 15% exiting 2011 North America competitive in 2012 Offshore Markets through the cycle Supply Chain Competency A Global Leader in Pressure Excellence…
International Margins Progress 15% Managing costs Regional workforce De-layering the organization Support optimization Operational efficiency Managing Cost Revenue Growth Operational 2010 Q4 Exit 2011 Q4 Exit…
International Markets Update Latin America dynamic market in Colombia; strong position in deepwater Brazil irregular payments in Venezuela -- tight capacity could favor growth Mexico slow to develop pre-elections 7…
International Markets Update Europe / Africa / Russia Caspian 2011 North Sea budget increases skewed to infrastructure; UK taxes a negative in 2012; Norway stable Russian activity up vs. 2010; increasing exploration…
International Markets Update Middle East / Asia Pacific Saudi Aramco executing their plans to add rigs; Abu Dhabi adding 16; Egypt at normal activity levels Asia Pacific to rebound in Q2 following Q1 weather China…
North America Update Gulf of Mexico Supply Chain Canada break up GoM Oil production, HHP (Thousands) million / bpd 14,000 1,800 12,000 1,600 10,000 1,400 8,000 6,000 1,200 4,000 1,000 Demand 2,000 Available 800 0 2009…
North America Update 100% 80% Rig Counts (year-on-year) 60% US Rigs + 15.6% 40% Revised from 12.3% forecast Dry gas to liquids switch 20% Increasing frac intensity 0% Canada + 12.1% May-06 May-07 May-08 May-09 May-10 May-11…
A Closer Look by Basin Eagle Ford 150 100 50 0 05 06 07 08 09 10 Source: EIA, Baker Hughes 12 2011 Baker Hughes Incorporated. All Rights Reserved.
A Closer Look by Basin Bakken 200 150 100 50 0 05 06 07 08 09 10 Source: EIA, Baker Hughes 13 2011 Baker Hughes Incorporated. All Rights Reserved.
A Closer Look by Basin Marcellus 160 120 80 40 0 05 06 07 08 09 10 Source: EIA, Baker Hughes 14 2011 Baker Hughes Incorporated. All Rights Reserved.
A Closer Look by Basin Woodford 160 120 80 40 0 05 06 07 08 09 10 Source: EIA, Baker Hughes 15 2011 Baker Hughes Incorporated. All Rights Reserved.
A Closer Look by Basin Haynesville 250 200 150 100 50 0 05 06 07 08 09 10 Source: EIA, Baker Hughes 16 2011 Baker Hughes Incorporated. All Rights Reserved.
Changing Technological Face of North America 12 Longer laterals Efficiency 10 Reliability 8 Complex solutions Tcf per Year 6 Sophisticated completions 4 2 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 Shale gas…
AutoTrak Curve Rotary Steerable System High build rate, fully integrated land-based drilling system Increases drilling performance vs. conventional motor systems Eliminates orienting / sliding for steering Saves trips to change…
Next Generation FracPoint Completion System Electrochemical reaction controlled by varying nano-scale coating within the composite grain structure Openhole fracturing market: 1 billion in 2011 2010 to 2011 anticipated 6%…
Gorilla Fleet in the Eagle Ford 21 2011 Baker Hughes Incorporated. All Rights Reserved.