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Today’s Vision – Tomorrow’s Reality?

SESSION 1. Today’s Vision – Tomorrow’s Reality?. Session Presenter. Bill Hall Managing Director, Mega Projects WorleyParsons. Agenda. Many challenges today Commodity pricing – fundamental shifts Equipment and labor costs Project execution impacts Strategies to meet the challenges.

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Today’s Vision – Tomorrow’s Reality?

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  1. SESSION 1 Today’s Vision – Tomorrow’s Reality? Session Presenter Bill HallManaging Director, Mega ProjectsWorleyParsons

  2. Agenda • Many challenges today • Commodity pricing – fundamental shifts • Equipment and labor costs • Project execution impacts • Strategies to meet the challenges

  3. Significant Challenges: Today and Tomorrow • Annual Engineering Graduates in 2006 • USA 60,000 • China 200,000 • Average USA “Professional Workforce” Age in ECC industries • Over 50 years old • And many more issues But even more critical: What is happening in overseas markets?

  4. Commodity Pricing - Fundamental Shifts

  5. Global Metals Outlook

  6. Global Metals Outlook

  7. 14Mta Global Metals Outlook

  8. Fundamental Pricing Shift

  9. Steel Prices to Surge “There is a strong view within the Chinese industry that miners will achieve the 85 percent increase, exceeding a 65 percent rise already agreed with a key Brazilian miner.” The Australian Financial Review April 2008

  10. Equipment and Labor Costs

  11. Equipment Costs Rise

  12. Labor Costs Rise 1990-2000: 3% YOY increase 2000-2008: 4% YOY increase

  13. Project Execution Impacts

  14. Project Delays

  15. Increasing Risk

  16. Increasing Development Time

  17. Increasing Engineering Backlogs

  18. Strategies to Meet the Challenges

  19. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering • Early engagement • New technologies

  20. Strategies • HSE performance

  21. Strategies • HSE performance • Workshare

  22. Strategies • HSE performance • Workshare • Accepting increased responsibility

  23. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering

  24. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering • Early engagement

  25. Strategies • HSE performance • Workshare • Accepting increased responsibility • Partnering • Early engagement • New technologies

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