Is Shale Gas In the Driver s Seat???? 3,000 TCF!!!!

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1 New Institute Go

2 Is Shale Gas In the Driver s Seat???? 3,000 TCF!!!!

3 2002- Mitchell Energy Led the Way

4 Barnett Shale Gas Play With Discovery of the Barnett Shale Everything Changed Abundant Supplies Price Competitive Ready to Use & Efficient Low Emissions Technology Already Exists Lots of Infrastructure in Place Market Growth Potential Domestic Fuel Sustainable for Decades

5 Urban Drilling Issues

6 Is It Safe? Water Use & Recycling Fracking Operations Methane Emissions Disposal & Earthquakes Well Casing & Cement Design Other Remember: It s Domestic!

7 Shale Gas Development UT-Austin & Environmental Defense Fund Study, March 2012 Key Findings: Over 1 Million Fracked Wells in U.S. since Aquifer Contamination: Researchers found NO EVIDENCE associated with Hydraulic Fracking Chemicals 2. Many reports of groundwater contamination occur in conventional oil and gas operations NOT FRACKING. 3. Methane found in water wells in some shale gas areas DUE TO NATURAL SOURCES NOT FRACKING 4. Surface spills of fracturing fluids appear to pose greater risks to groundwater sources..not FRACKING 5. Poor Cement Casing appears to be an issue in some shale wells NOT FRACKING

8 Domestic Independent Producers Are they In The Driver s Seat? Shale Gas Discoveries = Barnett, Haynesville, Fayetteville, Marcellus, Bakken, Eagle Ford, Niobrara, Antrim, etc

9 The Big Boys Jan 10..TOTAL & Chesapeake Now #3, $2.5 Billion! March 10 Exxon-Mobile & XTO Energy $41 Billion!! May 10..Quicksilver Resources partners with ENI (Italy) May 10...Shell $4.7 B! buys East Resources (Marcellus) Nov 10 Chevron acquires Atlas Energy $4B! (Marcellus) Dec 10 CNOOC.1B! in Chesapeake Energy-Barnett Jan 11..Quicksilver lease agreement-reliance Energy (India) Feb 1 11 CNOOC-1/3 of Niobrara (Colo) with CHK May 5 11 Chevron Buys Chief O&G in Marcelleus Jan 2012 Marubeni (Japan) in Eagle Ford (52,000 acres) Are these companies now In the Drive s Seat?

10 Expanding NG Markets!! Back-UP Fuel CNG Transportation Fuel LNG Base Fuel Hydrogen Source

11 Choosing Natural Gas Vehicles Do we have enough natural gas? Do we have the infrastructure? What are the benefits? What are the costs?

12 Another Approach Driving The Market! Altech Eco American Honda Motor Co American Lung Association ANGI-Energy Systems Atmos Energy AT&T, Fleet Operations BAF Technologies Barnett Shale Energy Education Council Burns & McDonnell Engineering Chesapeake Energy City of Fort Worth Clean Energy Fuels Coalition, Inc CoServe Inc Cygnet Inc Dale Gas Partners Dallas Transit DART Devon Energy DFW Clean Cites Dillon Transport Encana Oil & Gas Enterprise Rent-A-Car Emissions Solutions, Inc EOG Resources EWI Risk Services Fort Worth Chamber Fort Worth Transit Authority (The T ) Freese & Nichols engineering Garland ISD IPAA Ind. Petrol. Assoc of America Jetta Operating Company Jack B. Kelly, Inc J-W Power Company Marriott Hotels, USA NASCO (A) North America SuperCorridor National Fuel Marketing Navistar, Inc North Central Texas Council of Gov ts NGV America NGV Texas PACCAR Inc Pioneer Resources Pinnacle CNG Systems, LLC Purple Land Management Pioneer Resources Quicksilver Resources Republic Services, Inc Smith Family Investments SWEPCO USA TCU Energy Institute TCU Institute for Environmental Studies Tandy Center For Executive Leadership Texas Gas Association Trillium, USA Vista Sand Western Production Co. Wynne Motor Coaches XTO Energy Zeit Energy

13 NGVs in Austin Meeting Demo ALA!!! Clean Air-Clean Fuel For Texas!! State Capitol

14 DFW NG Public Stations Map Average Price per equivalent gallon = $2.00!! Web site:

15 The Texas NGV Clean Transportation Triangle 10% of US Business Transportation Sector Texas SB-20 Cooperative effort between natural gas producers, fleet customers and state government. 20% of TERP Money (Texas Emissions Reduction Plan)--$20-$30 million DFW to Austin-San Antonio to Houston 20% for new stations offering public LNG and CNG grants for 20 new stations 80% for government rebates for fleet owners for HDVs-500 Trucks Clean Air-Clean Fuel For Texas!!

16 National NGV Stations Pilot Flying J to Get Natural Gas Fueling Outlets Leading the Pack!! 150 New NGV Travel Stations!!

17 300 More Stations Announced AmericaCNG & Roady Truck Stops 300 LNG & CNG Nationwide by end of 2013 AmericaCNG.com Roady's Truck Stops Largest "chain" of independent Truck Stops in the US

18 NGVs = The Big Game!! 1,000 3,000

19 What to do? Regulation or Incentives? Water Recycling Size of Fracking Operations Methane Emissions Disposal & Earthquakes Well Casing & Cement Design Other Remember: It s Domestic!

20 13 Governors Support NGVs Gary R. Herbert Governor, State of Utah Paul R. LePage Governor, State of Maine Susana Martinez Governor, State of New Mexico Earl Ray Tomblin Governor, State of West Virginia Steven L. Beshear Governor, State of Kentucky Rick Perry Governor, State of Texas John R. Kasich Governor, State of Ohio Phil Bryant Governor, State of Mississippi Bobby Jindal Governor, State of Louisiana

21 Dr. Ken Morgan, Director Go Domestic..Go Natural Gas & Domestic Oil!!

22 NGV Web Sites ANGA Clean Energy Fuels CNG Now TCU Energy Institute DOE NGV America Natural Gas Vehicles Clean Skies Cummins Westport Natural Gas Vehicle Institute

23 Some CNG Facts We import $1B of oil a day 1 bbl of oil = $98 1bbl eq NG =?? Cost/gal to produce $2.60 g, $2.25 d, $1.40 cng Pump price for CNG $1.40-$2.40/gal Nat Gas costs are expected to hold steady for many years.the others?

24 NGV Facts Facts about Natural Gas Vehicles * There are about 120,000 NGVs on U.S. roads today and more than 14.8 million worldwide. * There are about 1,000 NGV fueling stations in the U.S., about half of which are open to the public. * There are also Home Refueling Appliances available. * In the U.S., about 30 different manufacturers produce 100 models of light-, medium-, and heavy-duty vehicles and engines. * Natural gas currently costs from $1.50 $2.00 less per gasoline gallon equivalent (GGE). * In the U.S. alone, NGVs offset the use of nearly 360 million gallons of gasoline in * NGVs meet the strictest emission standards, including California s AT-PZEV standard. * NGVs are as safe as or safer than traditional gasoline or diesel vehicles. Source: NGV America

25 Change to Domestic Natural Gas Clean Air and Clean Fuel for America 1. Grass Roots NGV Organizations in U.S. 2. Fleet Conversions-Large and Small Companies 3. Infrastructure/Vehicles--Detroit 4. Future-Jobs, Business Growth That s what happened 100 years ago! 1909 Model T