1. www.eia.gov U.S. Energy Information Administration Independent Statistics & Analysis The U.S. Natural Gas and Shale Production Outlook for North American Gas Forum September 29, 2014 by Adam Sieminski, Administrator

2. The U.S. has experienced a rapid increase in natural gas and oil production from shale and other tight resources 2 Sources: EIA derived from state administrative data collected by DrillingInfo Inc. Data are through July 2014 and represent EIA’s official tight oil & shale gas estimates, but are not survey data. State abbreviations indicate primary state(s). North American Gas Forum September 29, 2014

3. U.S. natural gas prices are expected to remain well below crude oil prices 3 energy spot prices 2012 dollars per million Btu Source: EIA, Annual Energy Outlook 2014, Reference case history projections 2012 Henry Hub natural gas spot price North American Gas Forum September 29, 2014 Brent crude oil spot price oil to gas price ratio: 7.1 ratio: 3.6

4. 4 North American Gas Forum September 29, 2014 marketed gas production non-marketed gas production Rig productivity has increased greatly, making rig count no longer correlated with production Sources: Natural gas production figures from EIA Short-term Energy Outlook, rig counts from Baker Hughes marketed natural gas production total rig count natural gas-directed rigs oil-directed rigs billion cubic feet per day rig count Natural gas and oil-directed rig counts and natural gas marketed production

5. 5 North American Gas Forum September 29, 2014 marketed gas production non-marketed gas production A larger share of new wells produce both oil and natural gas natural gas only oil only oil and natural gas Source: EIA based on DrillingInfo

6. Resource and technology assumptions have major implications for projected U.S. crude oil production beyond the next few years 6 Source: EIA, Annual Energy Outlook 2014 Reference case and High Oil and Gas Resource case; Short Term Energy Outlook, September 2014 Alaska tight oil other lower 48 states onshore lower 48 states offshore STEO September 2014 U.S. crude oil projection 2012 projectionshistory projections history 2012 Alaska tight oil other lower 48 states onshore Reference case million barrels per day High Oil and Gas Resource case million barrels per day lower 48 states offshore North American Gas Forum September 29, 2014

7. U.S. shale gas leads growth in total gas production through 2040, when production exceeds 100 billion cubic feet per day 7 U.S. dry natural gas production trillion cubic feet Source: EIA, Annual Energy Outlook 2014, Reference case Associated with oil Coalbed methane Tight gas Shale gas Alaska Non-associated offshore Non-associated onshore projections history 2012 North American Gas Forum September 29, 2014 billion cubic feet per day

8. 8 U.S. dry gas consumption trillion cubic feet Source: EIA, Annual Energy Outlook 2014, Reference case projectionshistory industrial* electric power commercial residential transportation ** 11.2 4.1 1.7 11.0 3.6 9.1 4.2 0.7 8.5 2.9 *Includes combined heat-and-power and lease and plant fuel **Includes pipeline fuel Natural gas consumption growth is driven by electric power, industrial, and transportation use North American Gas Forum September 29, 2014

9. Manufacturing output and natural gas use grows with low natural gas prices, particularly in the near term 9 manufacturing natural gas consumption quadrillion British thermal units Source: EIA, Annual Energy Outlook 2014, Reference case North American Gas Forum September 29, 2014 aluminum glass iron and steel paper food refining and related bulk chemicals other metal-based billion cubic feet per day durables manufacturing

10. U.S. becomes a net exporter of natural gas in the near future 10 U.S. dry natural gas trillion cubic feet per year Source: EIA, Annual Energy Outlook 2014 Reference case North American Gas Forum September 29, 2014 projections history 2012 consumption domestic supply net exports 100 75 50 25 0 -25 billion cubic feet per day

11. Source: EIA, Annual Energy Outlook 2014 Reference case and High Oil and Gas Resource case 11 North American Gas Forum September 29, 2014 Projected U.S. natural gas trade depends on assumptions regarding resources and future technology advances Reference case trillion cubic feet per year exports to Mexico exports to Canada lower 48 LNG exports imports from Canada LNG imports High Oil and Gas Resource case trillion cubic feet per year billion cubic feet per day 0 5 20 15 10 -5 -10

12. For more information North American Gas Forum September 29, 2014 12 U.S. Energy Information Administration home page | www.eia.govwww.eia.gov Annual Energy Outlook | www.eia.gov/aeowww.eia.gov/aeo Short-Term Energy Outlook | www.eia.gov/steowww.eia.gov/steo International Energy Outlook | www.eia.gov/ieowww.eia.gov/ieo Monthly Energy Review | www.eia.gov/merwww.eia.gov/mer Today in Energy | www.eia.gov/todayinenergywww.eia.gov/todayinenergy Drilling Productivity Report | www.eia.gov/petroleum/drilling/www.eia.gov/petroleum/drilling/