1. U.S. Energy Market: Part 1 Consumption We consume 26% of World Energy or nearly 20 mmbo per day Mature market economy

2. U.S. Energy Consumption, 1775-1999

3. Energy Consumption by Fuel, 1949-2020

4. U.S. Energy Flow, 1999 (Quadrillion Btu)

5. Transportation Consumption

6. Industrial Consumption

8. Long-Term Heating Oil Use (1947-1999) Residential, Commercial & Farming

9. Cost of Household Energy, 1979-1999 Inflation Adjusted to 2000 Dollars

10. O& G Journal - 8/28/2000

11. Household Expenditures by Space-Heating Intensity, 1997

12. Gasoline Market

13. Gasoline Consumption O& G Journal - 7/24/2000

14. Motor Vehicle Efficiency

15. Gasoline Additives & Markets O& G Journal - 7/10/2000

18. Environmental Investments O& G Journal - 7/17/2000

20. Renewable Energy Consumption by Source

23. U.S. Energy Market: Part 2 Production

24. Production and Consumption

25. Petroleum Production and Consumption

26. Oil Flow, 1999 (Millions Barrels per Day)

27. Oil Well Productivity

28. Lower 48 and Alaskan Crude Oil Production

29. Natural Gas Overview

30. Natural Gas Flow, 1999 (Trillion Cubic Feet)

31. Energy Production, 2000

32. Coal Major source of energy since 19c. Production in eastern and western US Significant CO 2 and particulate emissions Cleaner plants (still disposal issue) Coalbed methane (capital investment) International CO 2 reduction ( e.g., EPA/China ) Coal consumption down -both US & World Key factors in production: rank, thickness, continuity of beds; sulfur content; transportation; politics

33. Nuclear Significant since early 1970’s No new plants approved, but licenses renewed in several Many plants deactivated Nuclear waste disposal issue International issues - Russia/FSU - France/Korea/Japan Three Mile Island (1979) & Chernoble (1986)

34. Types of Oil and Gas Wells Exploration (high risk) ~ 10% av. success rate Frontier New basins Development (lower risk) Fields ( Rocky Mt thrust belt v. Permian Basin)

35. Oil & Gas Exploratory Wells, 1949-1999

36. O& G Journal - 9/25/2000

38. Oil & Gas Exploratory Wells, 1949-1999

39. O& G Journal - 9/25/2000

40. Oil & Gas Exploratory Wells, 1949-1999

41. Oil & Gas Development Wells, 1949-1999

45. Oil & Gas Drilling Activity Measurements

46. Drilling, Finding and Development Cost

47. Technically Recoverable Petroleum Resource Estimates, January 1, 1999

50. Summary U.S. oil production will continue to decline U.S. increasing will be dependent upon oil imports Natural gas is of growing significance Renewable energy and new technologies are extremely important Protecting the environment is a high priority A strong economy is a high priority

51. April, 2001 WSJ/NBC poll found that energy was our most important economic issue by 3 to 1. US energy self-sufficiency is a myth (if we rely on fossil fuels). Is anyone concerned in Jan, 2002?

52. Part 3Petroleum Reserves Industry Inventories –For operational needs (pipelines, refineries, supply/demand) Strategic Petroleum Reserve (SPR) –Government controlled, emergency use

53. Strategic Petroleum Reserve 700 mmbo capacity at four salt domes in US Gulf Coast ( 545 mmbo in place in 2001 ). The SPR can hold approximately 70 days of oil imports at current demand.

54. Strategic Petroleum Reserve Stocks

59. 2001 Oil Futures: Nymex

60. END

61. References SPR drawdowns trigger law of unintended consequences by Sarah Emerson,Oil&Gas Journal, Dec 10, 2001, p. 24-30.

62. Inflation-Adjusted Cost of Crude Oil

63. SPR as Share of Domestic Stocks

66. O& G Journal - 7/24/2000

67. Inflation-Adjusted Cost of Crude Oil