1. © ChevronTexaco 2004 Confidential Energy Security in the Western Hemisphere: Venezuela as the Cornerstone Ali Moshiri President ChevronTexaco Latin America Washington, June 22 2004

2. 2 Confidential The world is growing faster than we think The world will grow 50% by 2050

3. 3 Confidential Population growth requires energy growth Oil and Gas are growing at 1.9 and 2.2% respectively

4. 4 Confidential Naturally, the global energy supply/demand is in balance Worldwide Oil Consumption: Approximate 75,000 MMBOD It will probably still be in balance without any radical changes for the next 30 years, but what happens regionally? US Geological survey has 2 Trillion barrels of conventional oil using only 30-40% of Oil in place Oil Resources (Bbbl)

5. 5 Confidential In the Oil Sector Production: 20800 Consumpt: 28000 Balance: -7,200 Production: 8000 Consumpt: 2500 Balance: +5,500 Production: 21000 Consumpt: 4300 Balance: +16,700 Production: 8000 Consumpt: 21500 Balance: -13,500 Production: 16200 Consumpt: 19400 Balance: -3,200 Middle East reserve base is two times larger than the rest of the world. ME will gain even more strength - Remember the 70’s? Americas Europe & Eurasia Africa Middle East Asia-Pacific Reserves Production

6. 6 Confidential Lets take a closer look at our Hemisphere First at Latin America 000 BOD ProductionConsumptionBalance Mexico36001800 Venezuela30005002500 Brazil15001850-350 Argentina800350450 Colombia600200400 Ecuador400150250 T&T150NA Peru100150-50 Total LA10,2006,4003,800 The net consumption of other Latin American Countries= 1200mbod Venezuela largest oil contributor to the region

7. 7 Confidential Now lets add US & Canada Production and Consumption 000 BOD Production Consumption Balance USA & Can10,60021,600- 11,000 Total LA10,200 6,400 3,800 Americas -7,200 Venezuela holds 52% of the Oil in the region

8. 8 Confidential Can Venezuela Improve the future Western Hemisphere supply/demand balance? Venezuela seems to be the cornerstone for any oil supply dependency improvements in the region given a 75 year R/P ratio How much more ?

9. 9 Confidential Now, In the Gas Sector Latin America is in prime location to supply a gas hungry U.S market

10. 10 Confidential There are 362 TCF of natural gas searching monetization POTENTIAL NET EXPORTERS ATLANTIC BASIN: Venezuela Trinidad Colombia Brazil - ? PACIFIC BASIN: Peru Bolivia Reserves (Tcf) 1P 2P Venezuela 148 176 Bolivia 24 52 Argentina 27 38 Mexico 9 32 Trinidad 23 28 Brazil 8 12+ Peru 9 11 Colombia 4 5 TOTAL 252 362 R/P average of 100 Yr (2P basis) Venezuela is in first place with 176 TCF of gas and with a large potential for new reserves offshore

11. 11 Confidential U.S needs in average 20 LNG trains of 4.7 mtpa to fulfill its local supply/demand gap Latin America could easily provide 50% of those trains – Venezuela by itself can provide 20% of the average gap

12. 12 Confidential Conclusions  Western Hemisphere oil and gas supply/demand is highly unbalanced  Latin America surplus of Oil and Gas resources could potentially contribute to the security of oil and gas supply  Venezuela plays the critical role. Its large oil and gas resource base will help maintain a healthier and diversified portfolio of supply:  It Needs support of a Western Hemisphere energy policy that is efficient and effective  And business thinking should drive decision making.  The execution of a strategy to promote and develop important energy projects will require “Strategic Partnership”, “Timely Development” and “Efficient Capital Investment and Operational Cost” ChevronTexaco is committed to the region with an emphasis in Venezuela

13. 13 Confidential Here are two examples of our commitment Two Integrated projects in oil and gas in Venezuela with investment levels of $5 and $2.5 billion PLATAFORMA DELTANA

14. © ChevronTexaco 2004 Confidential Additional Information

15. 15 Confidential In Gas We will double our production by 2010 and still in search of new opportunities Venezuela contributes with 50% of that growth