GEOil & Gas

2

Oil & Gas

• Lead in technology

• Capture robust market upturn

• Integrate VetcoGray … explore other adjacent opportunities

• Grow installed base

• Continue Service expansion … traditional / new

~60%+

~80%+

1H’06 1H’07

Revenue

SegmentProfit

$0.2

$0.3

$1.9

$3.0

Winning in a strong market

Business Imperatives

($ in billions)

3

VetcoGrayOil & Gas

Getting closer to “the source” …

+

Providing 5X more value

• Gas turbine drivers and generators

• Compression train packages

• Gas recovery systems

• Asset optimization

• Surface & Subsea drilling packages

• Remote control systems

• Floating production modules

• Subsea equipment

Australia … ~$0.2B project ~$1B project

4

‘07E sales‘04 sales

Equipment portfolio transformation

$1.8

$4.9

Sales Sales

Pipelines

Downstream

LNG

Subsea & Drilling

Building platforms beyond strong LNG segment

$1.7

$3.2

+

($ in billions)

5

Oil & gas prices remain high … E/P CAPEX up 21%

Sustained drilling activity … +3,000 active rigs

1,000+ Xmas Trees to be awarded … 30% W. Africa

LNG trade expansion … +15 new trains

60,000 miles of new intercontinental pipelines

90 new greenfield/expansion refinery projects

100

150

250

‘00 ‘10 ‘20 ‘30

50 Existing reserves

Required

new production

200

Increasing depletion rate

• 37% world oil production from offshore by ’10 ... end of easy oil

• Non-conventional sources ... Oil sands and sour/acid gas

• ME & Africa to provide 90% of gas trade by ‘12

Market implications in next 3Ys

Market dynamics fueling growth

(M boe/d)

Continuing market strength

6

“Visible” opportunities ’08-’10

~$50B+ “visible” opportunities

~$14B Middle East opportunities

� Saudi: $200B spend, up and downstream

� India: $60B plan in oil & gas projects

Opportunity geography Key opportunities

~$11B European opportunities

�North sea: strong sub-sea activity

� Russia: Arctic LNG and new gas pipelines

N. America

MEA + India

~$15B Americas opportunities

�NA: focus on drilling and downstream

� Brazil: Petrobras to spend $87B

Latin America

Europe

Asia

15%

34%

22%

19%10%

7

+200MM Over plan

Drilling & Subsea

Highlights

� Growth synergies … Services, regional presence & customer relationships

� Technology … Subsea processing + GE Turbo-compression excellence

� Supply Chain … Rooftops, G&A, Other synergies: $100MM annualized target

• Exploring adjacencies … deep water drilling, subsea processing

Vetco outperforming all expectations

’07 Sales Est

$1.7B

($ in billions)$800MM3Q Orders

8

�4x additional output

�Improved deliveries

�Increased quality & safety

�Transferable

Lean in Vetco … first results

Drilling & production

Risers • Orbital welding

• Induction heating

• AUT & digital x-ray

• Blast & paint

• Standard work

• Engineering controls

• Production scheduling

• 74% cycle reduction -38 to 10 days

GE Manufacturing Technology Infusion

+

GE Process Rigor

+

Lean

9

Technology differentiation

Electrification

•High speed electric motors + drivers

Subsea processing

•Ultra-high reliability solutions

Global services

•Power up-rates & lower emissions

Compressor technology

•Advanced stage aerodynamics & seals

NPI spending ‘01-‘10

6X

… Plus access to world-class R&D technology programs

Key technologies

Gas turbines

•Increased fuel flexibility + higher efficiency

~$200

$33

$80

~$120

'01 '04 '07E '10F

($ in millions)

10

Service growth

Growing non traditional service offering

Non-traditionaltraditional

$1.2

~$1.9

Services sales growth Traditional & non-traditional

Traditional: Mining a large installed base

• 2,730 global units & 65% penetration

• 350 sites with remote monitoring and diagnostics

• Regionalization … closer to customers

Expanding non-traditional service business

• Over $3B CSA backlog by YE

• Upgrade solutions orders $0.4B, up 46%

• Investing in technology … 4x ‘06

($ in billions)

~0.8

~1.1

0.5

0.7

‘05 ’07E

11

• Strong market realities … oil price, drilling activity, & CAPEX remain high

• Vetco complements the portfolio … outperforming expectations

• Continuing portfolio transformation … building new platforms

• Technology … NPI spending 6X higher than ’01 … over $200MM in ‘10

• Service … expanding installed base and growing non-traditional offering

• Large emerging markets’ opportunities matched with best portfolio ever

Summary

GEInfrastructure