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 US Surpasses Russia as the World’s Largest Energy Producer (Liquids and Natural Gas) Geopolitical Upheaval Infrastructure Upheaval  Appalachian Basin Gas Production % of US Production % of US Production % of US Production – Northeast Self Sufficient?  Natural Gas Price NYMEX Crude Oil – Natural Gas Ratio, historical Norm 7.5X before X, Now Averaging 30X Henry Hub Spot $3.73 MMBtu (10/11/2013) Marcellus NE PA $1.94 MMBtu (10/11/2013) Impact on Consumers and Energy Slide 2

 Multiple Research Areas (Applied and Basic)  Subsurface Efficiency Geographic Information Systems Subsurface Imaging Geocellular Modeling (Static and Dynamic) Microbial Diversity  Surface Impacts Drilling Fluids Land Use Water Protection  Utilization  Societal/Policy Overseas – Poland, Jordan, China  Education Higher Education/Professional Education  Public Outreach Land Grant Mission Slide 3

 Deep Shale Microbial Biodiversity (NSF)  Paula Moser OSU – Shikha Sharma  Geographic Information Systems  Land Use -Shawn Grushecky  Geologic – Petroleum Engineering Modeling  Geophysical Imaging  Drilling Fluids  Ilkin Belgesu WVU – Jeff Daniels  Societal/Policy/Overseas  MOU Polish Technical Universities – Robert Blobaum  Shale Energy and Environment Laboratory (SEEL)  Transparent Utica and Marcellus Wells Slide 4

Primary Representative - Tim Carr Communications - Trina Wafle WVU Steering Committee WVU Research VP Fred King WVU Steering Committee

Primary Representative – Jeff Daniels Communications - Gina Langen WVU Steering Committee Utilization Jim Durand Societal Impacts/Policy Douglas Southgate Subsurface Dave Cole Education Ken Martin Environmental Richard Moore Outreach Ken Martin OSU Research VP Caroline Whitacre OSU Steering Committee

Slide 7

Utica Marcellus Slide 8

Slide 9 74%

Slide %

Slide 11 37%

Slide 12 2%

Slide 13 82%

Slide 14 29%

8,440 Horizontal Wells & Locations 200 Km Slide 15

Slide 16 Shawn Grusheky and WV GIS Tech Center

Slide 17 Metabolic Activities and Trophic Network Microbial Community Dynamics Paula Mouser and Shikha Sharma

Wang and Carr, 2012 Slide 18

Slide 19 Wang and Carr, in press

Faults from Arcadian Orogeny Slide 20

Each square 500 x 500 feet J1 A1 Microseismic, Inc. Slide 21

 New Faculty Hires  Downstream Utilization Production of Fuels and Chemicals Combustion in stationary Sources Mobile Vehicle Systems Enhanced Applications – Fuel Cells, Waste Heat Utilization  Energy Policy and Economic Development Regulatory Aspects Regional Analysis Sustainability  Shale Energy and Environment Laboratory (SEEL)  Ohio State University-West Virginia University  Transparent Utica and Marcellus Wells Slide 22

Tim Carr Phone: Slide 23