Utica Summit III Canton, Ohio, USA October 13, 2015

Transcription

1 Utica Summit III Canton, Ohio, USA October 13, 2015

2 The Zero Economy Zero Growth Zero Inflation Zero Returns on Financial Investments Zero Change in Unemployment Time to Sit This Out and Wait Till Next Year Next Year Will Be The Same As 2015 IMF Revised Down Global Growth to 3.1% Political and Economic Instability Low Commodity Prices Emerging Markets Have Stopped Emerging

3 Considerable Downside Risks Geopolitical Financial Sector Excess High Debt Burdens Unemployment Raise in US Interest Rates would cause Significant Disruption Secular Stagnation EU Stress Test Failures Mean Less Lending and Contraction Low Investment and Saving Rates Low Interest Rates & Deflation are Risks to Debt Sustainability

4 Government Managed Economies No Risk and Eliminate Ups and Downs The Social Net works Two Ways The New Fed Word, Macro Prudential Regulation Harness Globalization and the Economy Central Planning by Any Other Name Government Debt Highest in World History Need to Pay Interest and Keep Interest Costs Low Need Inflation to Bail Out the Debt Principal Payments Government Regulates and Controls by Nature

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8 Gas Export Country Forum controls 60% of Gas Supply to Europe The EU is Trapped with No Alternatives Who Controls the GECF? Russia High Prices for Natural Gas kill Jobs and Business USD per mcf Push for Renewables easily Rationalized Mittelstand is Under Attack and Leaving Land of the Economic Miracle now Land for Social Justice

9 Source: Süddeutsche Zeitung May, 2014

10 GECF Countries Control By Import Volume: 61% of EU Gas Supply 64% of EU Oil Supply 62% Gas & Oil by Value Source: EU Energy Security Report May 28, 2014

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12 Nine Zeros, Preceded by 1, 2, 4, 5 and More! USD 35 Billion Invested in the Last Three Years USD 6 Billion to be Invested in the Next 12 Months Zero Unemployment Latest Statistics Show 4.7% Unemployment Look at all the Trailer Homes and Workers coming from Texas and Elsewhere Shortage of Labor throughout the Utica Highest Growth in the Country Tuscarawas County Number 2 in the US in 2014 Growth Continues in the Utica

13 Capital Flows where it is Best Used Minimum Restrictions on Investment Private Companies dealing with Private Companies Minimal Government Issues No Risk, No Fun Return to Real Business Investment Operating Companies, not Financial Structures How Much goes Down the Hole? How Many Times have you made Payroll? Real Business Experience Trumps Real Engineering Trumps Financial Engineering Intellectual Capital Trumps Financial Capital

14 Ventures Announced with Global Investors Brazil China Thailand Japan France Germany Switzerland The Global Oil Companies are Here British Petroleum Royal Dutch Shell-Netherlands Total-France Statoil-Norway PTT-Thailand

15 Low Energy Cost Educated, Skilled Workforce Open to Outside Investment Exporters to the World No. 1 for German Investment in the 90`s Examples of Industries Oil & Gas Steel and Base Metals Plastics Chemicals Foundries Manufacturing

16 First Well in 1860 Home Of John D. Rockefeller Refinery 1 of Standard Oil Company Formed in 1870 in Cleveland Created the Integrated Refinery Strategy Standard of Ohio (Sohio) BP America Standard of New Jersey Exxon Standard of New York Mobil Standard of Californi Chevron Standard of Indiana (Amoco) BP America Ohio Oil Company Marathon Atlantic Company (ARCO) Sunoco

17 Rockefeller Value Today of Former Standard Oil Companies Exceeds USD 1 Trillion What`s the big deal about Silicon Valley? Ford Edison Carnegie Frick Timken Hoover Firestone Goodrich We were once the Center of Real Business and now, we do it again! Ohio Money built New York and Texas, so lets build Ohio!

18 The Power of Global Capital Flow Exponential Growth Transformation (Return) to the Top Region Slowly Eclipses Chicago, Texas and Other Regions of the US Get Ready to Rumble! Other Examples of Global Capital Impact Dubai (UAE) Doha (Qatar) Astana & Almaty, Kazakhstan Baku, Azerbaijan and More! Get Ready to Export! The World is Waiting!

19 Families for Families No Intermediaries Real Businesses with Real Assets Reduction in the Net Cost of Capital Formation More Invested means More Returns Families and Family Offices Lead the Way! Higher Risk Profile of Owners Fighting Real Inflation Families Always Have Been, Ahead of the Curve If Deals Go South Fix It! Smart Business Families are also Smart Investors

20 One Third of the Global Wealth of the World Resides in Switzerland 3500 Asset Managers in Zurich Alone! Largest City for Commodities Trading is Geneva, not London Largest Base For Family Offices in the World Crossroads for Global Deal Flow Always Looking for Opportunities and New Ideas A Solid Infrastructure for Capital Formation, Investment and Management

21 The New Financial Investment Model Private Club Deals Direct Investment in Projects Longer Investment Term Real Return Expectations Simple Private Structures for Investment No Need for People In Between The MLP Based on Law from the 1930`s Avoid High Costs and Fees on Both Sides of the Deal from New York City Why Fly a Tri-motor Ford in the Age of Mach 6?

22 Ohio Real Estate Investments Since 1918 Winesburg, Ohio 1820s Owned Properties in the, Sweet Spot Drilled on Owned Properties in the 1980`s Strategic in Oil & Gas Investment Upstream- Wells, Second Stage Recovery Midstream & Downstream-Pipelines, Storage, Logistics and Building the Bridge to the World It is a Real Business with Real Growth Real Returns Beyond Private Equity Markets Real and Tangible Assets Oil, Gas, Nat.Gas Condensate

23 Major Center of Global Investment New Study from JobsOhio To Be Released Substantial Economic Growth A, Definitive Study, by Cleveland State Slowdown in Production Offset by Growth in the Midstream E&P is Always Up and Down in Cycles Low Cost Attracts End Users in Industry and Power Generation Ohio becomes a Greener and Cleaner Place Conversion to Natural Gas Cleans the Environment Problems in Germany with Renewables Increase CO2 Content and Cost So Shift to Ohio Will Continue and Grow Rapidly

24 Provide a Regional Face to the World Any Win is a Team Win Any Investment in the Appalachian Basin is a Win We All Succeed in the Utica Region We have the People, The Tradition and Infrastructure to Make it Happen We Have Always Been Open to the World We Have to Tell The World We Are Here! Detroit is Cars, NYC is Banks, Hollywood is Movies and Texas is Oil

25 Canton Regional Chamber Leads the Way with Great Events Great Job by Dennis Saunier & Dave Kaminski Utica Summits Midstream Conference Welcome of Companies to the Utica It has Raised Eyebrows Around the World Three Speakers Today are Connected to Switzerland I Also Attended Midstream in June Internet Exposes the Region

26 Pennsylvania, More Gas than Qatar Ohio Will Also Out-produce Qatar Growth Rates for Industries Reflects Frontier and Emerging Market Returns Publicly Held Driller Lost Stock Value for 250 Percent Growth Not 350 Percent Growth Rapid Infrastructure Investment Conversion of Power Generation and Fleet Transport to Natural Gas Shale and Low Energy Costs Attract Global Capital Flow

27 Source: Markwest

28 Shale Transforms the World Ohio and the Utica One of the Top Locations in North America One-third of US Reserves in Appalachian Basin The Global Frontier is Shale and Returns show its Frontier Status Global Capital Flows to a Small Region with Amazing Results The Rust Belt is Now the Black Belt for Years to Come!

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30 Dr. Jur. Frederick Metz Shepperd, CEO Shepperd Investors AG Wiesenstrasse 10 CH 8032 Zurich Switzerland Tel. +41 (0)