1. The Range Bound Recovery
Bruce Bullock
Director, Maguire Energy Institute

2. Pipeline Opportunities
Pipelines less materially impacted by commodity prices, however they are directly tied to the health of the U.S. and Canadian and crude and gas markets which are recovering in certain areas, most notably the Permian Basin and the Scoop/Stack.

3. Where Have We Been? Prices in the mid 20s in early 2016
114 E&P Bankruptcies
110 OFS Bankruptcies
16 Midstream Bankruptcies

4. Significant Signs of Improvement
Prices in high 40s to low 50s
Restructuring approaching completiom
Permian property values on fire
Spot market rig day rates abover $18,000
E&P firms raised over $6 billion in equity in January, 65% of all equity raised in the U.S.
Service costs are increasing at 5% per quarter.

5. March 11, 2017.

6. March 11, 2017.

7. March 11, 2017.

8. March 11, 2017.

9. OPEC has regained market share but it could be fleeting in light of U
OPEC has regained market share but it could be fleeting in light of U.S. shale gains
Opec took share during the price collapse (trended SA, Mb/d) 57 56 55 54 53 52 51 50 49 44 43 42 41 40 39 38 37 36
Non- Opec
Opec (rhs)
J-12 J-13 J-14
J-15
J-16 J-17
Saudi (& the GCC), Iraq and Iran grow from then (3mma, yoy in kb/d)
Source: Credit Suisse

10. U.S. Productivity Up Significantly
Source: Credit Suisse

11. U.S. Production Again on the Rise
Total US crude oil production history and forecast (3 mma, kb/d)
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
Total US liquids production history and forecast (Mb/d)
Source: Credit Suisse

12. EIA Forecast Has a Wide Range of Uncertainty
Source: EIA

13. Others See Shale Capping the Upside
Scenarios around our central price deck: US shale limits upside, Opec and/or a fierce recession may yet set a new low ($/b, WTI)
$70
$60
$50
$40
$30
$20
$80
$90
qrtr avg WTI price CS base-case fcst
downside limited NT upside
Source: Credit Suisse

14. State of the Market

15. Uncertainties Fiscal Policy OPEC Extension Global Economy Recession
Tax reform
Infrastructure package
OPEC Extension
Global Economy
Recession