1. www.harrisinteractive.com ©2005, Harris Interactive Inc. All rights reserved. Public Perceptions Regarding the Oil and Natural Gas Industry Presented by Jean Statler October 24, 2006 Presented at: IPAA Annual Meeting

2. 2 Sept. 11 AttackOp Iraqi FreedomElection Day ‘04 26% 48% 45% 64% General Mood of the Nation

3. 3 Energy Strategic Framework Peace Of Mind Personal Security National Pride Mobility & Transport -ation Daily Use Economic Contri- bution Get Things Done Domestic Supply/ Access DIVERSITY OF SUPPLIES National Security Quality Of Life Future Generations Better Lifestyle, Dependable (Reliable), Protection, Domestic Production & Jobs, Technology Rational Emotional Safe Future/

4. 4 Current Public Opinion of the Oil and Natural Gas Industry

5. 5 Summary of Findings  Even though the industry faced many challenges over the past year (hurricanes, gas prices, earnings, State of the Union Address) most metrics have stabilized or slightly improved  Reliability is still seen as a key industry strength—but erosion is occurring at the attribute level –Industry creates jobs –Industry develops new and useful products –Narrowing of the gap between benefits of the industry’s products vs. risks  Build on key equities of reliability, technology and products to reinforce strengths and inoculate against further corrosion –Connect with emotions of security (national, energy, future generations)  When gas prices and earnings are lower -- environmental concerns return to the forefront of negative industry perceptions

6. 6 Industry Favorability Oil and Natural Gas Electric Utility Automotive Plastics Coal Nuclear Power

7. 7 Industry Favorability Industry Favorability, Price at the Pump Average Price of Regular Gasoline

8. 8 General Public: Favorability Determined By More Than Prices Leadership Traits 23% Price 32% Economic issues 13% Corporate governance 19% Environment 8% Efficient 4% Government cooperation 8% Caring 5% Reliable 11% Leadership traits 20% 2004 2005 n=2,000 General Public Tracking

9. 9 Perceived Benefits Continue to Outweigh Risks RISKS BENEFITS High Tech, Innovative, Quality of Life Improved Environmental Practices Reliability and Mobility Environmental Impact Finite Supply Corporate Trust Military/National Security Price

10. 10 Perception of Leadership is Deteriorating 2002 COMPLETELY DISAGREE RELIABLE = 7.5 DELIVERS ON PROMISES = 6.2 CREATIVE = 6.2 HONEST = 5.1 VISION OF THE FUTURE = 6.3 CARES ABOUT PEOPLE = 4.1 General Public 2006 COMPLETELY AGREE RELIABLE = 6.4 DELIVERS ON PROMISES = 5.1 CREATIVE = 5.0 VISION OF THE FUTURE = 4.9 CARES ABOUT PEOPLE = 5.7 HONEST = 3.9 10 1 5

11. 11 Most Core Strengths are Still Salient CORE STRENGTHS 2006 Jobs Advanced Technology Products Role in our Nation’s Military Security Prosperous and Secure Economy CORE STRENGTHS 2005 Jobs Advanced Technology Products Role in our Nation’s Military Security

12. 12 Vulnerabilities in Rational Components KEY VULNERABILITES Profit Margins Price Stability Fair prices Affordability Allows you to save money Amount of Information Received Global Warming Clean Environment Health Air Quality

13. 13 Conclusions: Views Entrenched but Hope Exists  Benefits of the industry’s products continue to outweigh risks  Actual knowledge of industry issues and practices improves perceptions  Key themes that drive reputation: Contribution to economy and quality of life Benefits of the industry’s products Environmental stewardship Technology Increased efficiency Energy security plan