1. Barry T. Smitherman Commissioner Gulf Coast Power Association Austin, TX October 4, 2011

2. Lower 48 States Shale Plays

3. Vertical vs. Horizontal Vertical vs. Horizontal Drilling

4. KeystoneXL Map

5. 2010 Domestic Oil Consumption US Production - 7.5 million bbl/day OPEC – 4.9 million bbl/day Canada + Mexico – 4.2 million bbl/day Other non-OPEC – 2.7 bbl/day

6. Domestic Production helps reduce US wealth transfer to other nations $80 per barrel Total estimated U.S. oil export revenue to other nations Venezuela $21 billion Nigeria $17 billion Russia $5 billion Algeria/Libya $7.5 billion Iraq $10 billion Source: EIA – Historical U.S. Total Crude Oil Imports