1. www.eia.gov U.S. Energy Information Administration Independent Statistics & Analysis Outlook for shale gas and tight oil development in the U.S. For Council on Foreign Relations April 11, 2013 | Washington, DC By Adam Sieminski, Administrator

2. U.S. Shale Gas 2 Adam Sieminski, CFR, April 11, 2013

3. An average well in shale gas and other continuous resource plays can also have steep decline curves, which require continued drilling to grow production 3 million cubic feet per year Source: EIA, Annual Energy Outlook 2012 1 Adam Sieminski, CFR, April 11, 2013

4. For example: Oil production by monthly vintage of wells in the Williston Basin 4 Source: Drilling Info history through August 2012, EIA Short-Term Energy Outlook, February 2013 forecast Adam Sieminski, CFR, April 11, 2013

5. Domestic production of shale gas has grown dramatically over the past few years 5 shale gas production (dry) billion cubic feet per day Sources: LCI Energy Insight gross withdrawal estimates as of January 2013 and converted to dry production estimates with EIA-calculated average gross-to-dry shrinkage factors by state and/or shale play. Adam Sieminski, CFR, April 11, 2013

6. Shale gas leads growth in total gas production through 2040 6 U.S. dry natural gas production trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release Associated with oil Coalbed methane Tight gas Shale gas Alaska Non-associated onshore Non-associated offshore ProjectionsHistory 2011 Adam Sieminski, CFR, April 11, 2013

7. 7 U.S. dry gas consumption trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release ProjectionsHistory Industrial Electric power Commercial Residential Transportation 33% 14% 6% 32% 12% 33% 19% 3% 31% 13% *Includes combined heat-and-power and lease and plant fuel. **Includes pipeline fuel. Gas to liquids 2% Natural gas consumption is quite dispersed with electric power, industrial, and transportation use driving future demand growth Adam Sieminski, CFR, April 11, 2013

8. Growth of natural gas in transportation, excluding pipeline use, led by heavy duty trucks (LNG) and gas to liquids (diesel)… marine and rail to come? 8 U.S. natural gas consumption quadrillion Btu Note: Gas to liquids includes heat, power, and losses. Source: EIA, Annual Energy Outlook 2013 Early Release Light-duty vehicles 2011 HistoryProjections 95% 52% 23% 25% 26% 67% 5% 2% Buses Freight trucks Gas to liquids Adam Sieminski, CFR, April 11, 2013

9. The U.S. is projected to be both an exporter and importer of natural gas U.S. natural gas imports and exports trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release Alaska LNG exports Exports to Mexico Exports to Canada Lower 48 states LNG exports 9 Imports from Canada LNG imports Adam Sieminski, CFR, April 11, 2013

10. Domestic natural gas production grows faster than consumption and the U.S. becomes a net exporter of natural gas around 2020 10 U.S. dry gas trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release ProjectionsHistory 2011 Consumption Domestic supply Net imports Adam Sieminski, CFR, April 11, 2013

11. U.S. Tight Oil 11 Adam Sieminski, CFR, April 11, 2013

12. Domestic production of tight oil has grown dramatically over the past few years 12 tight oil production for select plays million barrels per day Source: Drilling Info (formerly HPDI), Texas RRC, North Dakota department of mineral resources, and EIA, through October 2012. Adam Sieminski, CFR, April 11, 2013

13. U.S. tight oil production leads a growth in domestic production of 2.6 million barrels per day between 2008 and 2019 Adam Sieminski, CFR, April 11, 2013 13 U.S. crude oil production million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release and Short-Term Energy Outlook, April 2013 ProjectionsHistory 2011 Alaska Tight oil Other lower 48 states onshore Lower 48 states offshore STEO April 2013 U.S. crude oil projection

14. U.S. petroleum product exports exceeded imports in 2011 for first time in over six decades 14 annual U.S. net exports of total petroleum products, 1949 – 2011 million barrels per day Source: EIA, Petroleum Supply Monthly net product exporter Adam Sieminski, CFR, April 11, 2013

15. U.S. dependence on imported liquids depends on both supply and demand 15 U.S. liquid fuel supply million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release and Short-Term Energy Outlook, April 2013 Consumption Domestic supply Net imports 32% STEO forecast for 2014 37% ProjectionsHistory 2014 40% 2012 Adam Sieminski, CFR, April 11, 2013

16. Light-duty vehicle liquids consumption is lower primarily due to more stringent CAFE standards Adam Sieminski, CFR, April 11, 2013 16 light-duty vehicle liquids consumption million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release AEO2012 AEO2013

17. Global tight oil production comparisons 17 Source: EIA, Preliminary International Energy Outlook 2013 and BP Energy Outlook 2030, www.bp.com/energyoutlook million barrels per day BP Energy Outlook 2030IEO2013 DRAFT Adam Sieminski, CFR, April 11, 2013

18. U.S. and Saudi Arabian crude oil and petroleum liquids production Adam Sieminski, CFR, April 11, 2013 18 million barrels per day Note: Volumes for 2012 and 2013 are projected. Refinery gain for Saudi Arabia is estimated as one half of U.S. refinery gain on a percentage basis Source: EIA, This Week in Petroleum, Dec 19, 2012

19. For more information Adam Sieminski, CFR, April 11, 2013 19 U.S. Energy Information Administration home page | www.eia.govwww.eia.gov Annual Energy Outlook | www.eia.gov/forecasts/aeowww.eia.gov/forecasts/aeo Short-Term Energy Outlook | www.eia.gov/forecasts/steowww.eia.gov/forecasts/steo International Energy Outlook | www.eia.gov/forecasts/ieowww.eia.gov/forecasts/ieo Today In Energy | www.eia.gov/todayinenergywww.eia.gov/todayinenergy Monthly Energy Review | www.eia.gov/totalenergy/data/monthlywww.eia.gov/totalenergy/data/monthly Annual Energy Review | www.eia.gov/totalenergy/data/annualwww.eia.gov/totalenergy/data/annual