Energy Security in the Western Hemisphere: Venezuela as the Cornerstone

1. Energy Security in the Western Hemisphere: Venezuela as the Cornerstone Ali Moshiri President ChevronTexaco Latin America Washington, June 22 2004 Confidential

2. The world is growing faster than we think The world will grow 50% by 2050 Confidential

3. Population growth requires energy growth Oil and Gas are growing at 1.9 and 2.2% respectively Confidential

4. Worldwide Oil Consumption: Approximate 75,000 MMBOD Naturally, the global energy supply/demand is in balance Oil Resources (Bbbl) US Geological survey has 2 Trillion barrels of conventional oil using only 30-40% of Oil in place It will probably still be in balance without any radical changes for the next 30 years, but what happens regionally? Confidential

5. In the Oil Sector Europe & Eurasia Production: 16200 Consumpt: 19400 Balance: -3,200 Middle East Africa Asia-Pacific Americas Reserves Production Production: 20800 Consumpt: 28000 Balance: -7,200 Production: 8000 Consumpt: 2500 Balance: +5,500 Production: 21000 Consumpt: 4300 Balance: +16,700 Production: 8000 Consumpt: 21500 Balance: -13,500 Middle East reserve base is two times larger than the rest of the world. ME will gain even more strength - Remember the 70’s? Confidential

6. Lets take a closer look at our HemisphereFirst at Latin America The net consumption of other Latin American Countries= 1200mbod Venezuela largest oil contributor to the region Confidential

7. Now lets add US & Canada Production and Consumption Venezuela holds 52% of the Oil in the region Confidential

8. Can Venezuela Improve the future Western Hemisphere supply/demand balance? How much more ? Venezuela seems to be the cornerstone for any oil supply dependency improvements in the region given a 75 year R/P ratio Confidential

9. Now, In the Gas Sector Latin America is in prime location to supply a gas hungry U.S market Confidential

10. There are 362 TCF of natural gas searching monetization POTENTIAL NET EXPORTERS ATLANTIC BASIN: Venezuela Trinidad Colombia Brazil - ? PACIFIC BASIN: Peru Bolivia Reserves (Tcf) 1P 2P Venezuela 148 176 Bolivia 24 52 Argentina 27 38 Mexico 9 32 Trinidad 23 28 Brazil 8 12+ Peru 9 11 Colombia 4 5 TOTAL 252 362 R/P average of 100 Yr (2P basis) Venezuela is in first place with 176 TCF of gas and with a large potential for new reserves offshore Confidential

11. U.S needs in average 20 LNG trains of 4.7 mtpa to fulfill its local supply/demand gap Latin America could easily provide 50% of those trains – Venezuela by itself can provide 20% of the average gap Confidential

12. Conclusions • Western Hemisphere oil and gas supply/demand is highly unbalanced • Latin America surplus of Oil and Gas resources could potentially contribute to the security of oil and gas supply • Venezuela plays the critical role. Its large oil and gas resource base will help maintain a healthier and diversified portfolio of supply: • It Needs support of a Western Hemisphere energy policy that is efficient and effective • And business thinking should drive decision making. • The execution of a strategy to promote and develop important energy projects will require “Strategic Partnership”, “Timely Development” and “Efficient Capital Investment and Operational Cost” ChevronTexaco is committed to the region with an emphasis in Venezuela Confidential

13. Here are two examples of our commitment PLATAFORMA DELTANA Two Integrated projects in oil and gas in Venezuela with investment levels of $5 and $2.5 billion Confidential

14. Additional Information Confidential

15. In GasWe will double our production by 2010 and still in search of new opportunities Venezuela contributes with 50% of that growth Confidential