1. Pipeline Division Managers Presentation Technology and pipeline maintenance Adam Clinton Sean Diamond Yannis Sideris Jay Slaughter Wesley Terrell Chen Zhang

2. GIS b Spatial data management which stores, analyzes, and displays spatial data b Tracks pipeline flow and links with topographical data b Total cost - $600,000 capital; $300,000 annual maintenance

3. EDAS & SCADA b Wireless Ethernet with SCADA Package b Ethernet-new standard for data transmission protocol for pipeline technology b Two major components for system –Ethernet Data Acquisition System (EDAS) –Wireless Connection

4. EDAS & SCADA b Costs  Annual Total per compressor station - $26,000  Maintenance cost - $10,000 b Advantages  Provides real time information  Reduction in error/ manpower  Replaces time consuming process  Develops proactive PM program  Lowers costly down time

5. B2B Extranet Technology b Advantages Brings disparate parties together in a seamless virtual corporationBrings disparate parties together in a seamless virtual corporation  Uses the Internet as the primary mode of delivering data (free, pre-existing international infrastructure)  Reduces the cost of conducting business long-term  Provides real-time communications concerning the state of global energy markets and the opportunity to actively participate in those markets  Access “anywhere and anytime”

6. B2B Extranet Technology b Disadvantages Many third-world nations have little to no Internet infrastructureMany third-world nations have little to no Internet infrastructure Security in foreign nations is sub-standardSecurity in foreign nations is sub-standard High initial investment of capital and laborHigh initial investment of capital and labor Requires stakeholders (internal and external) to deviate from traditional ways of doing businessRequires stakeholders (internal and external) to deviate from traditional ways of doing business

7. Electronic Bulletin Boards (EBBs) b Online market place for pipeline and storage capacity b Advantages Provides limitless access to customersProvides limitless access to customers Allows you to market capacity without the sales forceAllows you to market capacity without the sales force Very cost effectiveVery cost effective

8. System Overview

9. SAP System Optimization b Advantages Seamless interface between different business unitsSeamless interface between different business units Significant cost savings due to reduction in workforceSignificant cost savings due to reduction in workforce Significant cost savings due to elimination of data processingSignificant cost savings due to elimination of data processing

10. SAP System Optimization b Disadvantages Sizable up front investmentSizable up front investment –$1.5 million Lengthy set up timeLengthy set up time –1-2 years

11. Recommendation b All of the technologies outlined would provide a competitive advantage b Implement in order: –Wireless Ethernet –GIS –B2B Extranet –EBBs –SAP b Fairly quick turnaround and good return on investment with short payback period