1. Institute for 21st Century Energy U.S. Chamber of Commerce Karen A. Harbert President and CEO Institute for 21st Century Energy U.S. Chamber of Commerce

2. Gas price changes since December 2008

3. U. S. C h a m b e r o f C o m m e r c e The New Energy Reality Energy Security is central to our national and economic security Demand to increase 53% by 2035  90% in non-OECD countries Electricity demand to increase 76% 1.6 billion people without electricity $38 trillion of new investment by 2035 to meet rising demand 90% world’s oil reserves owned by national oil companies

4. U. S. C h a m b e r o f C o m m e r c e An Inconvenient Energy Truth

5. U. S. C h a m b e r o f C o m m e r c e 0 20 40 60 80 100 120 19902000201020202030 mb/d Natural gas liquids Non-conventional oil Crude oil - yet to be developed (inc. EOR) or found Crude oil - currently producing fields World oil production by source World oil production by source 64 mb/d of gross capacity needs to be installed between 2007 & 2030 – six times the current capacity of Saudi Arabia – to meet demand growth & offset decline Source: IEA 2008

6. U. S. C h a m b e r o f C o m m e r c e Future U.S. Energy Demand EIA AEO 2012 US Energy Demand INCREASES 20%

7. U. S. C h a m b e r o f C o m m e r c e What’s happening in the U.S.? Future of expanded oil exploration? Impact of new natural gas finds Nuclear Renaissance? New coal fired power plants stalled Prospects for renewables People power BANANA Syndrome UNPREDICTABLE INVESTMENT ENVIRONMENT

8. U. S. C h a m b e r o f C o m m e r c e

12. Fueling Our Economy By 2030, U.S. oil and natural gas policy changes could generate more than: 1.4 million new jobs; $800 billion in additional government revenue; and 10 million barrels worth of added daily oil and natural gas production (Woods MacKenzie September 7, 2011 U.S. Supply Forecast and Potential Jobs and Economic Impacts 2012-2030)

13. U. S. C h a m b e r o f C o m m e r c e Fueling Our Economy Shale plays are on pace to create  +200,000 jobs in OH by 2020  +115,000 jobs in PA by 2020 (140,000 existing)  +100,000 jobs in TX, LA, and MS

15. U. S. C h a m b e r o f C o m m e r c e

16. Keystone XL Pipeline proposal

17. U. S. C h a m b e r o f C o m m e r c e Canadian Oil Sands Benefits Currently supports 80,000 U.S. jobs Could increase to 94,000 - 600,000 U.S. jobs by 2035 Keystone XL pipeline could create 20,000 US manufacturing jobs immediately and 250,000 by 2035 The projected impact to U.S. GDP would be between $200 billion - $800 billion; (Canadian Energy Research Institute June 2011 Economic Impacts of Staged Development of Oil Sands Projects in Alberta 2010 – 2035)

18. U. S. C h a m b e r o f C o m m e r c e New Capacity Investments

19. U. S. C h a m b e r o f C o m m e r c e US Nuclear Opportunities

20. U. S. C h a m b e r o f C o m m e r c e Coal on the Rise

21. Rulemakings On The Runway!

22. U. S. C h a m b e r o f C o m m e r c e

23. JOBS, JOBS, JOBS

24. U. S. C h a m b e r o f C o m m e r c e Where’s public opinion?

25. U. S. C h a m b e r o f C o m m e r c e U.S. Strategy-More Realism “NO SILVER BULLET APPROACH” Maximize Efficiency Increase domestic oil and gas Recognize role for nuclear and clean coal New alternative transportation fuels Sustainable policy on renewables Modernize our infrastructure Exert authority to get beyond NOPE syndrome Invest in our technology solutions and our intellectual foundation for innovation Achievable Climate Approach

26. U. S. C h a m b e r o f C o m m e r c e Time to TAKE ACTION AT RISK: America’s national security, investment climate and competitiveness ENERGYXXI.ORG