European Petroleum Industry Association EUROPIA

1. European Petroleum Industry AssociationEUROPIA Peter Tjan Secretary General

2. EUROPIA • Formed in 1989 as Association of Companies • Represents interests of EU oil refining, distribution and marketing industry to the EU Institutions • Covers 90+% EU refining capacity • Members present in all EU-25 + Norway, Switzerland • Small Brussels-based Secretariat • Independent Secretary General • Executive staff on secondment from Member Companies 2

3. EUROPIA Member Companies • BP • Cepsa • Chevron • ConocoPhilips • ENI • ExxonMobil • Hellenic Petroleum • Kuwait Petroleum International • MOL • Neste Oil • OMV • Petrogal • PKN Orlen • RepsolYPF • Saras • Shell • Statoil • Total • Industry consolidation has affected membership numbers but not the size and scope of the activities covered by EUROPIA 3

4. EUROPIA priorities • EU Energy Policy • Energy Efficiency • Security of Supply • Energy Mix • Renewables • Climate Change • ETS • Post 2012 GHG targets • Fuels / Product Quality • Automotive • Marine • Air Quality • Security of Installations • Taxation 4

5. Conference Theme • EU-India Partnership • Safe & Secure Energy 5

6. Recent oil market developments: Demand growth Source: OPEC 6

7. Increasing activity in futures market • Open interest surpassed 1 million contracts recently, reflecting sustained high interest by funds in oil futures! • EU-OPEC Workshop on financial markets (Dec 06) Source: OPEC 7

8. 2005 2010 2015 2020 2025 OECD 49.8 51.5 52.8 53.8 54.6 DCs 28.7 34.2 40.0 46.3 52.9 Transition economies 4.7 5.0 5.3 5.5 5.7 World 83.2 90.7 98.0 105.6 113.1 Long-term oil demand outlook mbd • Reference case sees oil demand rise by 30 mb/d by 2025 • Four-fifths of increase in demand in developing countries • However, OECD remains dominant consumer • Developing countries will consume, on average, five times less oil per person, compared with OECD countries Source: OPEC 8

9. OPEC Investment scenarios Uncertain future demand translates into a broad range of possible OPEC investment needs Source: OPEC 9

10. Crude Price Developments $/bbl Source: OPEC 10

11. EU Energy Package (Jan 2007) “The most important and ambitious energy package it has ever presented”: • Demand Side: • Energy Efficiency • Supply Side: • Indigenous sources • “Clean, low carbon” Coal • Oil & Gas • Renewables: • Wind/Hydro/Solar • Biomass • Power & Heat • Transport • Nuclear • Technology • Foreign Policy initiatives 11

12. EU Long Term Vision ”EU will source the clear majority of its energy from secure carbon free resources” • 2030 & 2050 target for low carbon energy • Consistent targets for GHG reduction 12

13. Partnership EU/India similarities: • Heavy reliance on fossil energy • High dependency on foreign resources • Similar source countries/area’s • Transport sector major consumer of fossil fuels Fast changing perception of: • Oil as a abundant low cost resource 13

14. Partnership Opportunities Develop/align long term energy strategy • Demand: • Consumer/consumer dialogue • energy efficiency • Product specifications • Supply: • Maximise indigenous opportunities • Exploit renewables potential • External relations priorities • Technology: • Align priorities and efforts and share best practices • Joint development platforms • Markets: • Remove market distortions • Full price transparency • Remove access barriers 14

15. Thank You www.europia.eu www.europia.com