1. Sheiks vs. Shale: The New Economic Realities of Oil and Gas and their Impacts on America’s Energy Industry Presentation to the Seattle Economics Council Bernard L. Weinstein, Ph.D. Associate Director, Maguire Energy Institute Cox School of Business Southern Methodist University Dallas, Texas February 3, 2016

2. THE RECENT BOOM IN THE OIL PATCH

3. BIRD’S EYE VIEW OF A FRAC SITE IN THE PERMIAN BASIN

7. GROWTH IN OIL PRODUCTION: US v. OPEC

9. BATTLE OF THE SHEIKS VS. SHALE: WHO WILL BLINK FIRST?

13. WHAT DO WE MEAN BY “BREAKEVEN?” Source: Wood Mackenzie

14. HOW LOW CAN IT GO?

15. $380 billion of deferred E&P projects worldwide

16. MANUFACTURING OUTPUT IS FALLING. WHY?

17. 300,000 Announced Layoffs and Counting: Is This the New Normal?

18. 36 filings in 2015 LAYOFFS AND BANKRUPTCIES

21. STACKED RIGS IN MIDLAND, TEXAS

22. IDLED OFFSHORE DRILLING RIGS-GULF OF MEXICO

23. “Oil Slump Hits Houston Home Market” Wall St. Journal, January 19, 2016

24. IS CHEAP GAS GOOD FOR AMERICA?

25. THE TRUCKING INDUSTRY IS ON A ROLL

27. Freight Loadings Forecast Expect 2006 levels to be exceeded in 2016 Source: FTR Trucking Update Report 2006 Peak

28. 2015 WAS A RECORD YEAR FOR AUTO SALES

30. AIRLINES EARNING RECORD PROFITS

31. IS THIS WHERE WE’RE HEADING?

32. UNCERTAINTY #1: IS THE CHINESE ECONOMY IMPLODING?

34. CAN IRAN REALLY BOOST PRODUCTION BY ONE MILLION BBD IN A YEAR? UNCERTAINTY #2

36. OIL PRICES AND INVESTMENT: A 65-YEAR PERSPECTIVE