David E. Holt Executive Director

1. Grassroots Effort During the MMS 2007-2012 5-Year OCS ProgramWhat it Means for New U.S. Energy Supplies David E. Holt Executive Director American Gas Association’s 2007 Public Affairs and Marketing Communications Forum Sawgrass Marriott Resort & Spa Ponte Vedra Beach, FL April 12 – 14, 2007 David E. Holt, CEA

2. Presentation Overview • Ongoing Energy Implications • Oil & Natural Gas in the OCS • OCS 5YP Grassroots Campaign • Unprecedented Support • Consumer Energy Alliance • Building Relationship/Dialogue with Consumers & End-Users • Improving Communications David E. Holt, CEA

3. Energy Implications • U.S. Consumers paid billions more in 2005 for increased transportation fuel costs • Higher fuel prices cost U.S. commercial air carriers $9.6 billion in fiscal year 2005 • During 2003/2004 seasons, U.S. farmers paid $6 billion for energy-related expenses – 41% increase from previous years • High energy prices (particularly natural gas) have cost the economy 2.8 million U.S. jobs since 2000 • Since 2004, high energy prices have slowed U.S. economic growth by 0.5 to 1.0 percent David E. Holt, CEA

4. Policies Adverse to O&G Companies Has Global Impact • Most NOCs use their national oil wealth to develop state authority • Real Giants – XOM barely cracks top 15 • Dominant suppliers risk weakening their leverage if over-used • National Oil Politics increasingly focused on Energy Security • Venezuela, Russia David E. Holt, CEA

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7. OCS Access Provides Universal Benefits for All Sectors • Conservative estimates from MMS indicate 288 trillion cubic feet of natural gas and 52 billion barrels of oil in the OCS off the lower 48 states • This is enough oil to maintain current oil production for 105 years and current natural gas production for 71 years • That is enough oil to produce gasoline for 132 million cars and heating oil for 54 million homes for 15 years • It is enough oil to replace current imports from the Persian Gulf for 59 years • That is enough natural gas to heat 72 million homes for 60 years, OR to supply current industrial and commercial needs for 28 years OR to supply current electricity generating needs for 53 years • And, that is before the Alaska OCS is considered with additional resources of 132 trillion cubic feet of natural gas and over 26 billion barrels of oil David E. Holt, CEA

8. OCS 5YP Grassroots Objectives • To maximize offshore access • To build a strong record of support in favor of a robust 5-Year Plan • To enhance dialogue with government and community stakeholders • To balance the record for U.S. access David E. Holt, CEA

9. OCS 5YP Strategic Priorities • Organize State-Specific Campaigns • Ensure Comments & Repeat Comments • Energy Consumers • Coordination with Targeted Stakeholder/Community Outreach • Editorial Boards/Letters to the Editor • Business & Consumer Groups (Local Chambers & Business Associations) • Military/Veterans Groups • Transportation, Tourism & Travel • Targeted Local Citizenry from Specific States • Academia & Think Tanks • Federal & State Representatives David E. Holt, CEA

10. Aggregate of all Comment Periods Shows Great Support • 90,855 total positive comments (73%) • 32,854 total negative comments (27%) • 123,709 total comments, in all David E. Holt, CEA

11. Increased Participation atEvery Stage of Process • Oct: 11,274 (80% positive = 8,998) • Apr: 39,223 (69% positive = 26,966) • Nov: 73,256 (75% positive = 54,891) David E. Holt, CEA

12. Improved Participation by Key States • Significant improvement in each of 5 selected priority states • Exception: Virginia David E. Holt, CEA

13. Aggregate Comments • Industry: 38,000 • 60 Plus: 22,000 • Consumer Energy Alliance: 11,000 • Other: 21,000 David E. Holt, CEA

14. Significant Grassroots Supporters • Trade Associations • API AGA U.S. Oil & Gas Assn • NOIA ACC NAM • IPAA Forest & Paper • IECA DPC • Companies • Shell Marathon Murphy • Devon BP Exxon Mobil • Anadarko ChevronTexaco • Affiliated Groups • 60 Plus Frontiers for Freedom • BIPAC American Conservative Union • Freedom Works Partnership for America • Consumers/End-Users • Consumer Energy Alliance Farm Bureaus (NC, CO, VA) • Ag-Energy Alliance Affiliated Industries of Florida • U.S. Chamber of Commerce Alaska Support Industry Alliance David E. Holt, CEA

15. Grassroots Priorities for 2007 • Capture Momentum of 5YP & Gulf Bill • Federal Legislation • State Initiatives (SC, GA, resolutions) • Onshore Access Issues • Adequately Fund Federal Agencies David E. Holt, CEA

16. Consumer Energy Alliance • Examining the Ups & Downs of Our Industry’s Communication Strategies • Customers • Federal/State Officials David E. Holt, CEA

17. Mission Consumer Energy Alliance supports thoughtful utilization of all domestic energy resources to help ensure domestic energy security and reduce prices for consumers Our mission: • improve consumer understanding of energy security and the thoughtful development and utilization of energy resources • help create sound energy policy and maintain stable energy prices for consumers Our goal: • to motivate and provide a voice for consumers interested in vital public issues, including: • responsible access to available natural resources; • power generation; • impact of energy prices on business, agriculture and consumers; • development of a robust, domestic renewable energy industry; • and utilization of new technologies that allow for higher levels of energy efficiency and conservation David E. Holt, CEA

18. Formation • Non-Profit 501(c)(6), created because: • Long history of haphazard dialogue with general public and public policy officials • Decade-long failure to enact substantive U.S. Energy Policy • Volatile energy prices = inconsistent media response • Need to improve dialogue on near- and long-term domestic energy solutions David E. Holt, CEA

19. Background • Officially formed in early 2006 • Successful efforts to build support for expanded U.S. production • Website dedicated to providing non-partisan information on all energy resources • Energy/Consumer Seminars • Educational & Outreach Efforts • Conservation Groups • End-Users • Small Business & Consumers David E. Holt, CEA

20. Board of Advisors •Energy Industry (Upstream & Downstream) •Alternative Energy • •Small Business • Retirees •Military •Travel & Tourism •Highway Users • •Trucking & Food Distribution • Home Builders •Restaurants • •Geology•Publishing • Academia • Elected Officials • Cathy Barnette Executive Director Alabama Coastal Foundation • Jack Belcher Government Affairs & Communications Manager Shell Exploration & Production • George Bialecki, Jr. President and Founder Alternative Energy Builders, Inc. Alternative Energy Living Foundation • Andrew C. Browning Director, Government Relations Methanex • Greg Cohen President American Highway Users Alliance • Bill Connors Executive Director & COO National Business Travel Association • Milton R. Copulos (USA Ret.) President National Defense Council Foundation • Heather McTavish Doucet • Director • International Foodservice Distributors Association • Mary Davis • Chief Operating Officer, retired • Time-Life, Inc. • Tommy Foltz • Vice President, Earth BioFuels, Inc. • Dr. Michelle Michot Foss • Chief Energy Economist • Bureau of Economic Geology • Center for Energy Economics • University of Texas • Christine A. Hansen • Executive Director • Interstate Oil & Gas Compact Commission • Don Juckett • Director, Geoscience and Energy Office, American Association of Petroleum Geologists • Glenn Kramer • Regulatory Affairs Manager, Hess Corp • Jim Martin • President • 60 Plus Association • Todd McCracken • Executive Director • National Small Business Association • Arthur Mears • Executive Director • Coast Guardians • Thomas Moskitis • Director, External Affairs • American Gas Association • Jan-Oddvar Sørnes, Ph.D. • Associate Professor • Bodø Graduate School of Business, Norway • Todd Thorner • Vice President, Business Development • Foresight Wind Energy, LLC • The Honorable Frank W. Wagner • Virginia State Senate • Thomas E. Williams • Vice President, Technology Division, Noble Corporation David E. Holt, CEA

21. Affiliates & Supporters …and growing rapidly Southeast Energy Alliance David E. Holt, CEA

22. Questions? Contact Information David Holt Consumer Energy Alliance 2211 Norfolk Street Suite 614 Houston, Texas 77098 PH: 713-524-2388 dholt@consumerenergyalliance.org David E. Holt, CEA