Planning for the Future James Watson President & COO, ABS Americas Houston, TX 18 February 2015.

Planning for the Future

James WatsonPresident & COO, ABS Americas

Houston, TX18 February 2015

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A Shifting Market…

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Oil Price Scenarios: Offshore Industry

$90+

• New Investment – Moderate to Strong

$80-$60

• New Investment – Weaker• Ultra Deepwater and Harsh Environment dries up• Deepwater dampened• Shallow only small impact

$60-$40

• Deepwater dries up• Shallow water impacted• Production and support further dampened• Increase in project delays by 20%

$40-$20

• Shallow water strongly impact – only some replacements• Production and support even further dampened• Increase in project delays by 30%

<$20

• No new orders in 2015 and 2016, a few in 2017• Increase in project delays by 40%

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Oil Price Scenarios: Marine Industry

$90+

• New Investment – Moderate• Focus on eco-designs• Flat growth across most sectors with small growth in bulkers and gas carriers

$80-$60

• New Investment – Weaker near term, stronger long term• Decline in eco-designs

$60-$40

• New Investment – Continued increase• Increase across all ship types• Further degrading of eco-designs, scrapping reduced

$40-$20

• New Investment – Continues to grown• Uptick in container and GDP-centric markets• Decrease in tanker and gas carrier orders

<$20

• New Investment – Uptick near term, long term strong• Few eco-design orders• Strong increase in bulk and containers• Strong decrease in tankers and gas carriers

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Emissions Continue to be Under Scrutiny

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2025

Investing in the Future

Support near term industry needs

and prepares ABS for the future

5+ Yrs

3-5 Year Horizon

1-3 Year Horizon

Understand the technology

Validate the technology

Implement the technology through

Rules and tools

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Proactive Collaboration

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Life Cycle Approach

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Foundation for Future

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Holistic Alignment

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Planning for the Future

www.eagle.org