1. European Petroleum Industry Association EUROPIA Peter Tjan Secretary General

2. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 2 Formed in 1989 as Association of Companies Represents interests of EU oil refining, distribution and marketing industry to the EU Institutions Covers 90+% EU refining capacity Members present in all EU-25 + Norway, Switzerland Small Brussels-based Secretariat – Independent Secretary General – Executive staff on secondment from Member Companies EUROPIAEUROPIA

3. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 3 EUROPIA Member Companies BP Cepsa Chevron ConocoPhilips ENI ExxonMobil Hellenic Petroleum Kuwait Petroleum International MOL Neste Oil OMV Petrogal PKN Orlen RepsolYPF Saras Shell Statoil Total Industry consolidation has affected membership numbers but not the size and scope of the activities covered by EUROPIA

4. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 4 EUROPIA priorities EU Energy Policy –Energy Efficiency –Security of Supply –Energy Mix –Renewables Climate Change –ETS –Post 2012 GHG targets Fuels / Product Quality –Automotive –Marine Air Quality Security of Installations Taxation

5. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 5 Conference Theme EU-India Partnership Safe & Secure Energy

6. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 6 Recent oil market developments: Demand growth Source: OPEC

7. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 7 Increasing activity in futures market  Open interest surpassed 1 million contracts recently, reflecting sustained high interest by funds in oil futures!  EU-OPEC Workshop on financial markets (Dec 06) Source: OPEC

8. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 8 Long-term oil demand outlook  Reference case sees oil demand rise by 30 mb/d by 2025  Four-fifths of increase in demand in developing countries  However, OECD remains dominant consumer  Developing countries will consume, on average, five times less oil per person, compared with OECD countries 20052010201520202025 OECD 49.851.552.853.854.6 DCs 28.734.240.046.352.9 Transition economies 4.75.05.35.55.7 World83.290.798.0105.6113.1 mbd Source: OPEC

9. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 9 OPEC Investment scenarios Uncertain future demand translates into a broad range of possible OPEC investment needs Source: OPEC

10. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 10 Crude Price Developments $/bbl Source: OPEC

11. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 11 “The most important and ambitious energy package it has ever presented”: -Demand Side: -Energy Efficiency -Supply Side: -Indigenous sources -“Clean, low carbon” Coal -Oil & Gas -Renewables: -Wind/Hydro/Solar -Biomass -Power & Heat -Transport -Nuclear -Technology -Foreign Policy initiatives EU Energy Package (Jan 2007)

12. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 12 ” EU will source the clear majority of its energy from secure carbon free resources” -2030 & 2050 target for low carbon energy -Consistent targets for GHG reduction EU Long Term Vision

13. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 13 EU/India similarities: -Heavy reliance on fossil energy -High dependency on foreign resources -Similar source countries/area’s -Transport sector major consumer of fossil fuels Fast changing perception of: -Oil as a abundant low cost resource PartnershipPartnership

14. EUROPEAN PETROLEUM INDUSTRY ASSOCIATION 14 Develop/align long term energy strategy -Demand: -Consumer/consumer dialogue -energy efficiency -Product specifications -Supply: -Maximise indigenous opportunities -Exploit renewables potential -External relations priorities -Technology: -Align priorities and efforts and share best practices -Joint development platforms -Markets: -Remove market distortions -Full price transparency -Remove access barriers Partnership Opportunities

15. Thank You www.europia.com www.europia.eu