1. The Association of American State Geologists 104 th Annual Meeting June 11, 2012 Chairman Barry T. Smitherman Railroad Commission of Texas www.smithermantx.com

2. 2 God Blessed Texas!

7. Texas has over 1,200 pipeline operators There are over 282,000 miles of pipeline in Texas All but three Texas counties have pipelines

8. 8 GwH Electric Generation by Fuel Type ERCOT (2007 – 2011) Fuel TypeJanFebMarAprYTD/Annual Natural Gas42.1%43.0%44.2%51.6%45.3% Coal33.1%33.4%30.2%24.2%30.2% Nuclear11.7%11.8%11.9%11.5%11.7% Wind11.5%10.6%13.1%11.1%11.6% Water0.2% 0.3%0.2% DC Imports1.1%0.8%0.2%1.3%0.8% Other0.2% Total100.0%

9. Lower 48 States Shale Plays

10. 10 U.S. Natural Gas Production: 1990-2035 (trillion cubic feet) According to EIA, shale gas production increases from 5 trillion cubic feet in 2010 (23% of total U.S. dry gas production) to 13.6 trillion cubic feet in 2035 (49% of total U.S. dry gas production). *Source: EIA Annual Energy Outlook 2012

11. 11 Total electricity generation was down 7% in December 2011 compared to December 2010. Despite this decline, generation from natural gas rose 12% to 86 terawatthours. Coal-fired generation, fell by 21% between December 2010 and December 2011, to 132 terawatthours. U.S. December Net Generation by Fuel Type

12. QUESTIONS? barry@smithermantx.com www.smithermantx.com 12