1. www.eia.gov U.S. Energy Information Administration Independent Statistics & Analysis U.S. Energy Outlook For International Monetary Fund January 14, 2013 | Washington, DC By Adam Sieminski, Administrator

2. Annual Energy Outlook 2013 projections to 2040 2 Growth in energy production outstrips consumption growth Crude oil production rises sharply over the next decade Motor gasoline consumption reflects more stringent fuel economy standards The U.S. becomes a net exporter of natural gas in the early 2020s U.S. energy-related carbon dioxide emissions remain below their 2005 level through 2040 Adam Sieminski January 14, 2013

3. Growth in energy production outstrips growth in consumption leading to reduction in net imports 3 U.S. energy production and consumption quadrillion Btu Source: EIA, Annual Energy Outlook 2013 Early Release Consumption Production Net imports 9% 19% 10% HistoryProjections 2011 2035 Adam Sieminski January 14, 2013

4. Petroleum 4 Adam Sieminski January 14, 2013

5. Reference case oil price initially drops and then rises steadily, but there is uncertainty about the future trajectory 5 Annual average spot price of Brent crude oil 2011 dollars per barrel ProjectionsHistory 2011 High Oil Price Low Oil Price Reference Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski January 14, 2013

6. U.S. tight oil production leads a growth in domestic production of 2.6 million barrels per day between 2008 and 2019 6 U.S. crude oil production million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release Tight oil Alaska Other lower 48 onshore Lower 48 offshore ProjectionsHistory 2011 Adam Sieminski January 14, 2013

7. New light-duty vehicle fuel economy approaches 50 mpg by 2040 7 New LDV fuel efficiency miles per gallon Source: EIA, Annual Energy Outlook 2013 Early Release 2011 ProjectionsHistory Summary of LDV standards 2012-2016:Increase to 34.1 mpg CAFE average in 2016 (based on vehicle footprint sales distribution) 2017-2025:Increase to 47.4 mpg CAFE average in 2025 (based on vehicle footprint sales distribution) Adam Sieminski January 14, 2013

8. Light-duty vehicle liquids consumption is lower primarily due to more stringent CAFE standards 8 Light-duty vehicle liquids consumption million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release AEO2012 AEO2013 Adam Sieminski January 14, 2013

9. Transportation sector motor gasoline demand declines 9 Transportation energy consumption by fuel quadrillion Btu ProjectionsHistory 2011 60% Motor gasoline E85 Jet fuel CNG/LNG 11% 13% 4% 29% 47% Source: EIA, Annual Energy Outlook 2013 Early Release 2% Pipeline fuel 3% 4% Other 4% Diesel 22% 1% Adam Sieminski January 14, 2013

10. U.S. petroleum product exports exceeded imports in 2011 for first time in over six decades 10 Annual U.S. net exports of total petroleum products, 1949 – 2011 million barrels per day Source: EIA, Petroleum Supply Monthly net product exporter Adam Sieminski January 14, 2013

11. U.S. dependence on imported liquids declines 11 U.S. liquid fuel supply million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release Consumption Domestic supply Net imports 45% 37% ProjectionsHistory 2011 60% 2005 Adam Sieminski January 14, 2013

12. Global liquids supply increases 26 percent with regional market shares relatively stable 12 Global liquids supply million barrels per day Source: EIA, Annual Energy Outlook 2013 Early Release ProjectionsHistory 2011 OPEC Other non-OECD OECD 44% 25% 31% 40% 26% 34% Adam Sieminski January 14, 2013

13. Natural Gas 13 Adam Sieminski January 14, 2013

14. Shale gas production leads growth in production through 2040 14 U.S. dry natural gas production trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release Associated with oil Coalbed methane Tight gas Shale gas Alaska Non-associated onshore Non-associated offshore ProjectionsHistory 2011 Adam Sieminski January 14, 2013

15. 15 U.S. dry gas consumption trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release ProjectionsHistory Industrial* Electric power Commercial Residential Transportation ** 33% 14% 6% 32% 12% 33% 19% 3% 31% 13% *Includes combined heat-and-power and lease and plant fuel. **Includes pipeline fuel. Gas to liquids 2% Natural gas consumption is quite dispersed with electric power, industrial, and transportation use driving future demand growth Adam Sieminski January 14, 2013

16. Growth of natural gas in transportation led by heavy duty trucks (LNG) and gas to liquids (diesel)… marine and rail to come? 16 U.S. natural gas consumption quadrillion Btu Pipeline fuel Light-duty vehicles 2011 HistoryProjections 95% 3% 1% 28% 38% 3% 31% 1% Buses Freight trucks Gas to liquids Note: Gas to liquids includes heat, power, and losses. Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski January 14, 2013

17. Domestic natural gas production grows faster than consumption and the U.S. becomes a net exporter of natural gas around 2020 17 U.S. dry gas trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release ProjectionsHistory 2011 Consumption Domestic supply Net imports Adam Sieminski January 14, 2013

18. Total natural gas exports nearly quadruple by 2040 in the AEO2013 Reference case 18 U.S. natural gas exports trillion cubic feet Source: EIA, Annual Energy Outlook 2013 Early Release Alaska LNG exports Exports to Mexico Exports to Canada Lower 48 LNG exports Adam Sieminski January 14, 2013

19. Coal and Electricity 19 Adam Sieminski January 14, 2013

20. Growth in electricity use slows, but still increases by 28% from 2012 to 2040 20 U.S. electricity use percent growth (3-year rolling average) Source: EIA, Annual Energy Outlook 2013 Early Release Structural Change in Economy - Higher prices - Standards - Improved efficiency Projections History 2011 Period Annual Growth 1950s 9.8 1960s 7.3 1970s 4.7 1980s 2.9 1990s 2.4 2000-2011 0.9 2012-2040 0.9 Adam Sieminski January 14, 2013

21. Over time the electricity mix shifts toward natural gas and renewables, but coal remains the largest fuel source 21 U.S. electricity net generation trillion kilowatthours 25% 19% 42% 13% 1% Nuclear Oil and other liquids Natural gas Coal Renewables 2011 ProjectionsHistory 17% 16% 35% 30% 1% 1993 53% 13% 19% 11% 4% Source: EIA, Annual Energy Outlook 2013 Early Release Adam Sieminski January 14, 2013

22. Changing electricity generation mix in AEO2012 reference case and carbon fee allowance side cases 22 U.S. electricity net generation trillion kilowatthours Source: EIA, Annual Energy Outlook 2012 Natural gas 2012 Reference Case $15 Carbon Fee $25 Carbon Fee Renewables Nuclear Coal Natural gas Renewables Nuclear Coal 2010 24% 10% 20% 45% 28% 15% 18% 38% 34% 22% 27% 16% 34% 23% 38% 4% Adam Sieminski January 14, 2013

23. Coal regains some competitive advantage relative to natural gas over time on a national average basis 23 ratio of natural gas price to steam coal price Source: EIA, Annual Energy Outlook 2013 Early Release History Projections 2011 2011 dollars per Btu HistoryProjections2011 Competitive parity Energy prices to the electric power sector Coal Natural gas Adam Sieminski January 14, 2013

24. U.S. continues to be a net exporter of coal 24 million short tons Source: EIA, Annual Energy Outlook 2013 Early Release Projections History 2011 Consumption Domestic Supply Net imports Adam Sieminski January 14, 2013

25. Non-hydro renewable generation more than doubles between 2011 and 2040 25 Non-hydropower renewable generation billion kilowatthours per year Source: EIA, Annual Energy Outlook 2013 Early Release Wind Solar Geothermal Waste Biomass Industrial CHP Power sector Advanced biofuels cogeneration (not visible) 2011 ProjectionsHistory Adam Sieminski January 14, 2013

26. Energy and CO 2 per dollar of GDP continue to decline; per-capita energy use also declines 26 Energy and emission intensity index, 2005=1 Source: EIA, Annual Energy Outlook 2013 Early Release HistoryProjections 2011 Carbon dioxide emissions per 2005 dollar of GDP Energy use per 2005 dollar of GDP Energy use per capita 2005 Adam Sieminski January 14, 2013

27. In the AEO2013 Reference case, energy-related CO 2 emissions never get back to their 2005 level 27 Carbon dioxide emissions billion metric tons Source: EIA, Annual Energy Outlook 2013 Early Release ProjectionsHistory 20112005 20202040 (billion metric tons) 6.005.455.69 - -9.0%-5.1% (percent change from 2005) AEO2013 Adam Sieminski January 14, 2013

28. For more information 28 U.S. Energy Information Administration home page | www.eia.govwww.eia.gov Annual Energy Outlook | www.eia.gov/forecasts/aeowww.eia.gov/forecasts/aeo Short-Term Energy Outlook | www.eia.gov/forecasts/steowww.eia.gov/forecasts/steo International Energy Outlook | www.eia.gov/forecasts/ieowww.eia.gov/forecasts/ieo Today In Energy | www.eia.gov/todayinenergywww.eia.gov/todayinenergy Monthly Energy Review | www.eia.gov/totalenergy/data/monthlywww.eia.gov/totalenergy/data/monthly Annual Energy Review | www.eia.gov/totalenergy/data/annualwww.eia.gov/totalenergy/data/annual Adam Sieminski January 14, 2013