1. NPC – NARD Study Policy Subgroup Charter Identify meaningful and actionable recommendations on changes to U.S. federal and state policy that will promote the prudent development of natural gas and oil resources in a manner consistent with U.S. government objectives of reduced greenhouse gas emissions, environmental protection, economic growth and competitiveness, and energy security. 9-20-10

2. Economic Competitiveness Energy Security Prudent Environmental Practices Sound Investment Lower GHG Emissions ISSUES AFFECTING POLICY ISSUES IN THE NARD STUDY: 9-20-10 DIPPING A TOE IN THE POLICY DISCUSSIONS….

3. Energy security issues and policy implications: Topics within the scope of the study Two principles clusters of issues: Economics and/or security of control over energy supplies within and into the U.S. Geopolitical considerations of energy supply/delivery/use Two principles clusters of issues: Economics and/or security of control over energy supplies within and into the U.S. Geopolitical considerations of energy supply/delivery/use 9-20-10

4. Energy security issues and policy implications: Economics and/or security of control over energy supplies within and into the U.S. – Risk/threat of curtailment regarding fuel(s), delivery systems – Price pressure (including volatility) in energy commodities affected by global markets, global demand requirements – with economic impacts/vulnerabilities in the U.S., especially for fuels for which there is little substitution in the near term. – Vulnerability of infrastructure to attack (e.g., terrorist strikes) Economics and/or security of control over energy supplies within and into the U.S. – Risk/threat of curtailment regarding fuel(s), delivery systems – Price pressure (including volatility) in energy commodities affected by global markets, global demand requirements – with economic impacts/vulnerabilities in the U.S., especially for fuels for which there is little substitution in the near term. – Vulnerability of infrastructure to attack (e.g., terrorist strikes) 9-20-10

5. Energy security issues and policy implications: Geopolitical considerations of energy supply/ delivery/use – Implications of size / development of resource base for US role in global markets and relationships with other energy producers and energy consumer nations – Changing relationships among different global players (different alliances, players, etc.) with implications for supporting our/allies’ energy interests Threats of disruption of energy supply to our allies Areas of strength in U.S. and allies’ energy resources (e.g., shale basins) / technological capabilities (e.g., shale production) that affect our strategic interests and actions Changing dangers of conflict over oil and gas resources [and other energy resources] – Global environmental issues (e.g., climate change) - implications for energy security, unrest in impacted nations, changing alliances…. – Enrichment of unfriendly or unstable regimes as a result of energy dependence – with implications for military action – Energy trade issues, balance of payments/power relationships Geopolitical considerations of energy supply/ delivery/use – Implications of size / development of resource base for US role in global markets and relationships with other energy producers and energy consumer nations – Changing relationships among different global players (different alliances, players, etc.) with implications for supporting our/allies’ energy interests Threats of disruption of energy supply to our allies Areas of strength in U.S. and allies’ energy resources (e.g., shale basins) / technological capabilities (e.g., shale production) that affect our strategic interests and actions Changing dangers of conflict over oil and gas resources [and other energy resources] – Global environmental issues (e.g., climate change) - implications for energy security, unrest in impacted nations, changing alliances…. – Enrichment of unfriendly or unstable regimes as a result of energy dependence – with implications for military action – Energy trade issues, balance of payments/power relationships 9-20-10

6. Energy security issues and policy implications: 9-15-10 Other ideas / issues / themes regarding energy security from the Fuels Study participants??? – Xxx