Louisiana Department of Natural Resources

1. Louisiana Department of Natural Resources Louisiana Mid-Continent Oil and Gas Association “Perspective on Energy Issues” DNR Secretary Scott A. Angelle January 26, 2012

2. Oil and Gas prices decoupling

3. Price Dynamics Changing Faster Historic Pricing Ratio: Oil vs Natural Gas

4. Shale Plays in Lower 48 States

5. U.S. Energy Sources in 2011

6. Domestic Gas Production/Consumption Trillion Cubic Feet Per Year Gap Filled with Imports

7. Oil vs Gas in U.S. Drilling

8. One Week of Natural Gas Prices

9. Petrochemicals on the way down in 2008-2009 Ga. Gulf cuts 100 at La. plant The Advocate June 6, 2009 Dow trimming La. jobs 260 laid off around area The Advocate January 31, 2009 Before Wednesday's announcement by Dow, the Louisiana Chemical Association anticipated losing about 1,000 chemical jobs in the next year… The Advocate December 11, 2008 50 face layoffs at BR offices Albemarle Corp. starts Restructuring The Advocate January 30, 2009

10. Shale Natural Gas Has Brought on Mississippi River Renaissance • Port of New Orleans expansion after chemical exports jumped 34 percent in 2010 • Dow investing $4 billion in Gulf Coast ethane cracker near Gulf Coast by 2017, will reopen another in Louisiana, and build two propylene plants • Methanex of Canada has announced it will move production facilities from Chile to Louisiana • Occidental Chemical, Chevron Phillips Chemical, and Formosa Plastics Corp. have indicated interest in Gulf Coast

11. Gas-to-Liquids Opportunity • Sasol proposed Gas-To-Liquids plant in Calcasieu Parish • Potential $10-billion direct investment and 800-plus direct jobs that are associated with it • Designed to produce highway-grade diesel fuel • Sasol has stated economics work at 20-to-1 oil-gas price ratio • Already began expansion of petrochemical facility in the area

12. Northwest –Southwest Global Expressway

13. Sabine Pass LNG Terminal Cheniere Energy Partners, L.P. (“Cheniere Partners”), under its subsidiary Sabine Pass Liquefaction, LLC (“Sabine Pass”), has initiated a project to include liquefaction services at the Sabine Pass LNG receiving terminal in Cameron Parish, Louisiana.  Adding liquefaction capabilities would transform the Sabine Pass terminal into a bi-directional facility capable of liquefying and exporting natural gas in addition to importing and regasifying foreign-sourced LNG.  Cheniere Energy Partners has initiated a project to transform its Sabine Pass LNG Terminal into a bi-directional facility. Text Body in White 12-20 pt Aerial Font (bold) Updated: 04/01/2011 AD

14. 2011 Natural Gas Production Louisiana total – 2.49 tcf from 19,845 wells U.S. total – 23 tcf from 480,000+ wells Haynesville only – 1.7 tcf from 1,805wells .78 tcf 1.7 tcf Haynesville accounts for 9 percent of state gas wells and68 percentof state gas production 30 percent of U.S. natural gas production now comes from shale wells

15. Three Louisianas – Five Years Snapshots of rig activity trends

16. Louisiana Rig Counts 2008 - 2011 OCS Moratorium

17. Louisiana’s New Energy Map

18. Davy Jones Discovery • McMoran Exploration is developing major discovery in about 20 feet of water, 10 miles south of Vermilion Parish • Ultra-deep prospect – drilled more than 30,000 feet under sea floor (more than 5 miles) • May be 200 feet thick – estimates of 2 tcf to 6 tcf of natural gas, potentially one of the largest finds in the Gulf • 2 wells drilled, awaiting completion equipment • First production could come in 2012 • McMoran’s investment has drawn interest in area from other exploration companies

19. OCS Activity Improving – But Not There Yet Pre-Moratorium Rig Activity Level OCS Moratorium

20. Crude Oil/Condensate Production 2011 Million Barrels a Day

21. GEST Related Meetings/Phone Calls

22. Deepwater Plan and First APD Approval: EPs and DOCDs