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Natural Gas Makes the Future Work

Natural Gas Makes the Future Work. Outline. Natural Gas in Relation to Other Commodities Today’s Market Fundamentals Natural Gas: Jobs, Revenue & Environment. Same story, different commodities. Natural gas at low end of rising commodity tide. Coal Crude Oil Soybeans Wheat Corn Copper

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Natural Gas Makes the Future Work

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  1. Natural Gas Makes the Future Work

  2. Outline • Natural Gas in Relation to Other Commodities • Today’s Market Fundamentals • Natural Gas: Jobs, Revenue & Environment

  3. Same story, different commodities Natural gas at low end of rising commodity tide Coal Crude Oil Soybeans Wheat Corn Copper Gold Natural Gas Silver Coal Crude Oil Soybeans Wheat Corn Copper Gold Natural Gas Silver Commodity Price Changes Since January 2007 Source: CME Group, A CME/Chicago Board of Trade Company

  4. Major U.S. Shale Basins Hold Potential for 30 Bcf/d; Roughly Half of U.S. Production Source: North American Natural Gas Supply Assessment Navigant Consulting, Inc. & EIA 6

  5. Natural Gas, Oil E&P Provides Billions Annually in Government Revenue • U.S. Treasury: • $6.6 Billion in 2007 • $17.1 Billion in 2008 • States: • $1.6 Billion in 2007 • $2.2 Billion in 2008

  6. U.S. LNG Import Capacity Growing; Imports Lag Due to World Competition Bcf/day U.S. Import Capacity U.S. Imports Source: EIA Annual Energy Outlook 2008 & EVA

  7. http://www.ferc.gov/market-oversight/othr-mkts/lng/othr-lng-wld-pr.pdfhttp://www.ferc.gov/market-oversight/othr-mkts/lng/othr-lng-wld-pr.pdf 9 http://www.ferc.gov/market-oversight/othr-mkts/lng/othr-lng-wld-pr.pdf 9

  8. Canadian Imports Slowing Bcf/day Source: EVA 10

  9. Rig Count Decline Demonstrates Supply Following Demand 50% Source: EIA Monthly Energy Review, December 2008 & EIA Natural Gas Weekly Update (4/9/09)

  10. Industrial Sector Demand Rebounded in 2008; Industrial Sector Most Elastic Tcf Source: EVA & Annual U.S. Natural Gas Industrial Consumption, EIA

  11. 5.8 Million Blue Jobs • Natural gas and oil industry provides 5.8 Million Blue Jobs • 1.8 Million Direct • 4 Million Indirect • E&P Jobs Pay More Than 2x National Average • Natural gas and oil industry provides nearly $300 Billion annually in labor income (API PWC Study, 2007)

  12. Natural Gas Is Key Ingredient in Everyday Products • Manufacturers Consume One-third of Natural Gas to Make Products • Additional Jobs Associated with Those Products • Oil & Natural Gas Industry Contributes $570 Billion to Economy Annually (Source: API PWC Study, 2007)

  13. Natural Gas Has a Long-term Role to Play Source: EIA 2009 Energy Outlook

  14. Market Chooses Natural Gas for Variety of Reasons: Emissions Tons annually per 1,000 households

  15. Market Chooses Natural Gas for Variety of Reasons: Reliability

  16. Market Chooses Natural Gas for Variety of Reasons: Cost $ millions per 1,000 households (2007)

  17. Partnership Necessary to Achieve Climate Goals

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