Vail Global Energy ForumVail, CO March 14, 2015 MODERATOR: THOMAS A. PETRIE, CFA

PETRIE PARTNERS, CHAIRMAN

The Rise of North America: A Global Energy PowerhouseThe Impact on North American Energy Security and Independence: Operational Achievements and Capital Requirements

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Iranian Revolution

shah deposed

Saudis abandon “swing producer”

role; oil prices collapse

Iraq invades Kuwait

Prices rise sharplyon OPEC cutbacks,increased demand

Prices fall sharplyon 9/11 attacks, economy weakness

Prices spike on Iraq war, rapid demand increases, constrained OPEC capacity,

low inventories, etc.

Fear of globaleconomic meltdown

Back from the abyss

Fiscal Clifffallout concerns

OPEC agrees to quota increaseGulf War ends

WORLD EVENTS AND OIL PRICES – NOMINAL PRICING (1971 – 2015 YTD)

1973 Arab Oil Embargo

OPEC agreesto quotas

Syriancivil warescalates

1971 1975 1980 1985 1990 1995 2000 2005 2010 2015

ISIS on the rise

Russia challenges

Ukraine

1

The Oil Price Supercyle

Iran-Iraq War begins;

oil prices peak

Source: EIA.

Saudis abandon “swing producer” role again

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2,000

4,000

6,000

8,000

10,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

U.S

. O

il P

ro

du

cti

on

(M

Bo

pd

)

Source: EIA.

Historical Projected

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2

Today’s Transformed OutlookHISTORICAL AND PROJECTED U.S. OIL PRODUCTION

2014: 8.6 MMBopd