1. M.D. Anderson
Steve Farris CEO

2. Anomaly vs Reality?
HH Natural Gas
WTI Oil

3. The Squeeze is on the Debt Generation
US Total Debt as % of GDP
350%
350%
300%
300%
250%
250%
200%
200%
150%
150%
100%
100%
50%
50% 0% 0%
1920
1920
1934
1934
1949
1949
1965
1965
1981
1981
1996
1996
2006
2006
Source: The Economist based on Morgan Stanley, Federal Reserve and BEA

4. Oil Consumption & Population Growth
2008 Population: 6.7 Billion
Consumption: 85 MMbbls/d
Sources: Population Reference Bureau & BP Statistical Review.

5. The World Still Needs Energy
World Oil Production Needs
Growth for China/India increases challenge by 50%
Need:
A new U.S.
… + a new
Asia Pacific
… + a new
Africa
… + a new
FSU
A new World ex Middle East
Onstream Production Declining at 4%
Source: U.S. Department of Energy data, Perella Weinberg analysis.

6. Significant New Reserves Must be Found
Current demand will consume over half of
world’s proved oil reserves within 25 years
Current demand: MMbopd
Oil required next 25 years:
No growth: 775 Bn barrels
1.3% growth: 880 Bn barrels
2.0% growth: 960 Bn barrels
World proved oil reserves: ,390 Bn barrels*
OPEC 935 Bn barrels*
* YE 2007 proved reserves including Canadian oil sands. Source: 2008 BP Statistical Review.

7. Demand Pull
China and India Are Increasingly Driving Total Growth in Primary Energy Demand
China & India - % of World Energy Demand Growth
53%
29%
Source: BP Statistical Review of World Energy 2007

8. The Landscape of Ownership has Changed
National Oil Companies have nationalized resources, leaving the Majors to compete for a smaller universe of assets.
Top 10 Oil Producers: 1972
Top 10 Oil Producers: 2007
NOCs
Majors
Total: 29.6 MMbbls/d
Total: 48.1 MMbbls/d
Source: Global Pacific & Partners

9. Shrinking Access to Reserves
Full IOC Access
Reserves
NOC Reserves
(equity access)
Russian Reserves
113/ 6%
140/ 7%
324/17%
1,354/70%
NOC Reserves (no equity access)
Source: PFC Energy Upstream Competition Service & BP
Reserve figures in billion boe 9

10. Top Ten IOCs Struggle to Maintain Production
E&P Capital: $536 Bn

11. Mounting Pressure on Technology
National Oil Companies (NOC) 83%
International Oil Companies (IOC) much less accessibility
Limited New Acreage
Data Analysis more intense
New Imaging technology (?)