MAPPING A GLOBAL STRATEGY: CHOOSING THE RIGHT INTERNATIONAL TARGETSaskatchewan Industrial & Mining Suppliers Association

November 15, 2016 | Regina

SK

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WELCOME

BILL WHITELAW

PRESIDENT & CEOJWN ENERGY

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OVERVIEW

JWN Energy is the most trusted provider of

information, intelligence and insight about

Canada’s energy industry.

Inform Connect Grow

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PURPOSE & SCOPE

Market

ExpansionIdentifying the

countries with the

greatest opportunity

for market expansion

Growth

AdviceProviding practical

advice for overseas

business growth

Analysis by

CountryAnalyzing the

countries based on

their attractiveness for

Canadian suppliers

Success

StoriesHighlighting

successful exporters

and their path to

global expansion

Purpose: To help Alberta O&G companies identify potential export

markets for their technologies and services , and to provide intelligence

on market access.

Scope includes:

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COLLABORATION

“For industry, by industry”

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APPROACH: STAGE I

1. Rapid Triage

Narrowed the list from 120+ countries with hydrocarbons to 16

using more than 35 different qualitative and quantitative data points

and criteria, including:

• Oil and Gas Reserves

• Oil and Gas Current Production

• Number of E&P Companies Operating in a Country

• Number of Canadian E&P Companies Operating in a

Country

Output: The final selection identified 16 countries that account for

>80% of global O&G activity (and need to be on the radar of

Canadian Service & Supply Companies)

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COUNTRIES

Mexico

United States

Brazil

Argentina

Colombia

Peru

Russia

Iran

China

Saudi Arabia

Qatar

UAE

Norway

United Kingdom

Indonesia

Australia

Going Global Phase I: Launching Oct 19

Going Global Phase II: Launching Q1 2017

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APPROACH: STAGE II

2. Deep Dive

Analyzed the list of 16 countries that need to be on the radar of

Canadian Service & Supply, including (but not limited to):

• Market overview;

• Opportunities where Alberta-based companies have

expertise, including unconventional resources, heavy oil and

enhanced oil recovery;

• Play success probability;

• Infrastructure status;

• Market-based pricing;

• Socio economic and political situation analysis using a

PESTEL format;

• Ease of doing business; and

• Services and labour availability.

METHODOLOGY

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RIS

K

RETURN

Best Opportunity

Low Risk, High Return

Low Risk, Low Return

High Risk, Low Return

High Risk, High Return

• 2015 O&G Reserves

• 2015 O&G Production

• Active # of E&P

Companies

• Free Trade Agreements

• Sanctions

• Active # of Canadian E&P

Companies

• Enhanced Oil Recovery

• Onshore Heavy Oil

• Shale O&G

• Coalbed Methane

• Primarily Onshore

• Ease of Starting a

Business

• Strength of Minority

Investors Protection

• Ease of Enforcing

Contracts

• International Property

Rights Index

• Geographic Proximity

CRITERIA

Note: The dots on the graph represent 11 clusters of the 16 countries

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ANALYSIS

1) Evaluate Energy Database

Research using Evaluate Energy’s

robust global oil and gas database

and other sources

2) Workshops & Interviews

Input from experts and industry

leaders via workshops and

interviews

3) Resources, Case Studies &

Sponsors

Leveraged the resources, case

studies and advice of the sponsors,

who all have extensive export

experience

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STUDY OVERVIEWO&G Overview

Facts & Figures: O&G

Reserves & Production

Number of Active

E&P/Canadian E&P

Companies

Map outlining active &

inactive basins

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STUDY OVERVIEW

Opportunities:

Unconventional,

EOR, Heavy Oil, &

Infrastructure

Oilfield Services Market

Canadian Market Penetration

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STUDY OVERVIEW

Insights on Doing

Business in the

Country

World Bank Doing

Business Rankings

Compared to Canada

Insights on Working

in the CountryTaxes

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STUDY OVERVIEW

Overall

Recommendations

PESTEL Analysis

(Political, Economics,

Social, Technological,

Environmental & Legal)

Insights From Alberta

Exporters

Further Reading:

Resources, Events,

Industry Associations,

& Market Regulators

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CHALLENGES

Limited Sales

Channels

Logistical

Challenges

Cultural

Challenges

Finding

Opportunity

Changing

Market

Conditions

Regulatory/Legal

Challenges

Integrated Multinational

Service Providers

Seven major challenges that impact export readiness were

identified:

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RECOMMENDATIONS

Know Your Core

Competencies &

Competitive Advantages

Do Your Homework

on Potential

Export Markets

Build and

Leverage Your

Networks

Understand

Your

Competition

Limit Your

Market Entry

Risks

Seek Expert Advice on

Regulatory Requirements &

Financial Considerations

Six key recommendations for international export success were

identified:

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RESOURCES

Petroleum Services

Association of Canada

Business Development

Bank of Canada

Canadian Chamber

of Commerce

Canadian Global

Exploration Forum

Alberta

Canada

Canadian Manufacturers

and Exporters

JWN

Export Development

Canada

Alberta Economic

Development

Evaluate Energy

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NEXT STEPS

www.jwnenergy.com

Going Global: Helping Canadian Companies Navigate International Opportunities

www2.jwnenergy.com/GoingGlobal-2016-download