HOUSTON, TEXAS – September 15, 2009 – During his keynote speech today at Turbomachinery Symposium 2009, Claudi Santiago, president and CEO of GE Oil & Gas, called upon the oil and gas industry to continue seeking innovative solutions that will transform industry challenges into opportunities.

“Think outside the box,” Santiago urged, “Weathering the storm of these turbulent times will only be achieved by investing in innovative technology and working collaboratively with industry partners and governments to address tomorrow's energy challenges”.

“The oil industry has been on a rapid growth curve” he added, “but its temporary slowing will have positive benefits for those brave enough to take advantage. Not simply reviewing operations to drive greater cost efficiencies, but industry-wide investing in R&D by leveraging other engineering disciplines – aviation, materials science and healthcare, for example - to develop a systems-integration mindset that delivers better value, on a more sustainable basis and drives the oil and gas industry forward. It is vital to continue to invest in research and development.”

Although the industry is facing challenges, there remains a strong future for both oil and gas with unconventional sources, such as heavier oil and ultra-deep fields, being brought on-stream, Santiago noted. According to the International Energy Agency, within a ten-year period oil demand will grow to a level where the industry will need to add capacity equivalent to five and a half times that of Saudi Arabia’s current production levels.

“However, these new additions will come from more challenging locations, such as ultra-deep subsea reservoirs, and will be more difficult to process into end products,” Santiago said. “In addition, the industry will have to contend with ever-increasing environmental issues. All of these factors will place strong demands on equipment manufacturers and will require new technology, expanded manufacturing facilities and a larger workforce of talented individuals.”

Despite current price drops, there also is a lot of potential for the gas sector of the industry, Santiago added. “The power sector is the main driver of natural gas demand, especially in countries where electricity demand is projected to rise most rapidly. In many cases gas continues to be favored over coal and oil for environmental reasons.”

Overall, the oil and gas industry faces many challenges, including deep seabed compression, sour and acid gas exploration and production, getting more from existing resources, reducing CO2 emissions, developing lighter products from heavy crude, and monetizing stranded resources. “Technology innovation is the way to meet these challenges,” Santiago said.

Supporting Santiago’s ‘Innovation Now’ message, GE Oil & Gas, a leading supplier of advanced technology and services for the global oil and gas industry, is showcasing several of its innovative offerings in Booth 1201 at the Turbomachinery Symposium, including:

• LM6000 enhanced package for onshore and offshore applications.Building on more than 16 million hours of experience compiled by GE’s LM6000 aeroderivative gas turbine fleet, this enhanced package is specifically designed to meet the stringent requirements of the liquefaction market, with special attention to floating LNG applications where reliable compressor operation and fuel flexibility are critical.
• ORegen™ Waste Heat Recovery System.Launched in January 2009 and based on Organic Rankine Cycle technology, ORegen was developed specifically to lower operating costs by allowing waste heat energy capture and recovery from installed equipment and conversion into electricity, increasing net plant efficiency.
• Power Crystal Technology.This retrofit kit for GE’s MS5002C and D gas turbines can increase power or extend maintenance intervals, leading to increased production and relatively lower costs compared to the installation of new, high-performance gas turbines. The kit is suitable for all mechanical drive applications such as LNG, re-injection and pipeline compression, for both onshore and offshore.
• BCL centrifugal compressor for sour gas re-injection.The ecomagination-certified BLC compresses the associated gas (CO2 and other greenhouse gases) that is usually extracted from wells and re-injects it into the same reservoir. This increases yield by up to 20 percent while minimizing the ultimate release of greenhouse gases.
• Blue-C Subsea Compressor. This is the world’s first compressor built in a fully maritime version, driven by a gas-filled, high-speed electric motor and packaged in a single-sealed housing designed to withstand high hydrostatic pressure. The first unit is being used in the Ormen Lange pilot project to exploit a huge natural gas field off the coast of Norway at 2,952 feet below sea level, without using conventional offshore platforms.

About GE Oil & Gas

The GE Oil & Gas business (www.ge.com/oilandgas) is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals. GE Oil & Gas also provides pipeline integrity solutions, including inspection and data management. As part of its 'Innovation Now' customer focus and commitment, GE Oil & Gas leverages technological innovation from other GE businesses, such as aviation and healthcare, to continuously improve oil and gas industry performance and productivity. GE Oil & Gas employs more than 12,000 people worldwide and operates in over 70 countries.

About GE

GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com. GE is Imagination at Work.

For more information, contact:

Nigel O’Connor
GE Oil & Gas
+44 (0) 207 302 6941
+44 (0) 776 611 5135
nigel.o'connor@ge.com

Ken Darling
Masto Public Relations
+1 518 786 6488
kenneth.darling@ge.com