1. Natural Gas Makes the Future Work

2. 2 Outline Natural Gas in Relation to Other Commodities Today’s Market Fundamentals Natural Gas: Jobs, Revenue & Environment

3. Same story, different commodities Coal Crude Oil Soybeans Wheat Corn Copper Gold Natural Gas Silver Commodity Price Changes Since January 2007 Source: CME Group, A CME/Chicago Board of Trade Company Natural gas at low end of rising commodity tide Coal Crude Oil Soybeans Wheat Corn Copper Gold Natural Gas Silver

4. 4 Same Story, Different Commodities Coal Crude Oil Soybeans Wheat Corn Copper Gold Natural Gas Silver Commodity Price Changes Since January 2007 Source: CME Group, A CME/Chicago Board of Trade Company

5. 5 Natural Gas at Low End of Rising Commodity Tide Coal Crude Oil Soybeans Wheat Corn Copper Gold Natural Gas Silver Commodity Price Changes Since January 2007 Source: CME Group, A CME/Chicago Board of Trade Company

6. 6 Major U.S. Shale Basins Hold Potential for 30 Bcf/d; Roughly Half of U.S. Production Source: North American Natural Gas Supply Assessment Navigant Consulting, Inc. & EIA 6

7. Natural Gas, Oil E&P Provides Billions Annually in Government Revenue  U.S. Treasury: –$6.6 Billion in 2007 –$17.1 Billion in 2008  States: –$1.6 Billion in 2007 –$2.2 Billion in 2008

8. 8 U.S. LNG Import Capacity Growing; Imports Lag Due to World Competition U.S. Import Capacity Source: EIA Annual Energy Outlook 2008 & EVA Bcf/day U.S. Imports

9. 99 http://www.ferc.gov/market-oversight/othr-mkts/lng/othr-lng-wld-pr.pdf

10. 10 Canadian Imports Slowing 10 Source: EVA Bcf/day

11. Rig Count Decline Demonstrates Supply Following Demand 11 Source: EIA Monthly Energy Review, December 2008 & EIA Natural Gas Weekly Update (4/9/09) 50%

12. 12 Industrial Sector Demand Rebounded in 2008; Industrial Sector Most Elastic Source: EVA & Annual U.S. Natural Gas Industrial Consumption, EIA Tcf

13. 5.8 Million Blue Jobs  Natural gas and oil industry provides 5.8 Million Blue Jobs –1.8 Million Direct – 4 Million Indirect  E&P Jobs Pay More Than 2x National Average  Natural gas and oil industry provides nearly $300 Billion annually in labor income (API PWC Study, 2007)

14. Natural Gas Is Key Ingredient in Everyday Products  Manufacturers Consume One-third of Natural Gas to Make Products  Additional Jobs Associated with Those Products  Oil & Natural Gas Industry Contributes $570 Billion to Economy Annually (Source: API PWC Study, 2007)

15. 15 Natural Gas Has a Long-term Role to Play Source: EIA 2009 Energy Outlook

16. Market Chooses Natural Gas for Variety of Reasons: Emissions Tons annually per 1,000 households

17. Market Chooses Natural Gas for Variety of Reasons: Reliability

18. $ millions per 1,000 households (2007) Market Chooses Natural Gas for Variety of Reasons: Cost

19. Partnership Necessary to Achieve Climate Goals