Profiting from Big Picture Energy Trends

Jim Letourneau, P.Geol.Big Picture Guywww.JimLetourneau.com

Debt/Delevering

ENERGY USE vs GDP

Debt/Delevering

The daily amount of energy used in the United States, per person, is about as much energy as.... 1.100 watt lightbulb left on for 103

days straight2.707 quarter-pound hamburgers3.Half a tank of gasoline (7 gallons)4.All of the above

Debt/Delevering

URANIUM

Debt/Delevering

What country generates the most electricity from nuclear power? 1.Japan2.United States3.France4.Russia

Debt/Delevering

Powerwave

Debt/Delevering

OIL

Debt/Delevering

Most U.S. petroleum imports come from the Persian Gulf

true?false?

Debt/Delevering

NATURAL GAS

Debt/Delevering

RENEWABLES

Debt/Delevering

RENEWABLES HOURLY

Debt/Delevering

TOTAL HOURLY

Debt/Delevering

HUNTINGTON BEACH

Debt/Delevering

SAN GORGIONO

Debt/Delevering

ENERGY SOURCES

Debt/Delevering

Debt/Delevering

What energy source provides the most renewable energy in the United States? 1.Biofuels2.Wind3.Hydropower4.Wood

Debt/Delevering

3 Game ChangersWas

Shale Gas

Shale Oil

Enhanced Oil Recovery (EOR)

Debt/Delevering

Shale Gas

Debt/Delevering

NGV in 1930

Debt/Delevering

Shale Oil

Debt/Delevering

Powerwave

Debt/Delevering

BULLISH on ENERGYNatural Gas - cyclical against a backdrop of 200 yr supply.Look at technology stocks that facilitate NGVs.Look at natural gas users.

Workshop 1- Is American Energy Independence Possible?

Workshop format... Q&A at the end?

My Background - Calgary, Muslim Mayor, KREM/KHQ, KEZE (Spokanes home of rock and roll)

UraniumHATHOR'S ROUGHRIDER EAST DELIVERS BEST HOLE TO DATE: 63.5 M OF 7.75% U3O8, INCLUDING A 17.5 M INTERVAL OF 24.3% U3O8, WITH ASSAYS AS HIGH AS 87.2% U3O

OilRange bound - good for the economy

Natural GasHow low can you go?

Don’t get sucked IN... price is based on supply and demand. Supply has gone through the roof!

Milo Minderbinder, Catch-22I sell everything at a loss but make up for it in volume

3 Game Changers - Shale gas, Shale oil, and EOR

Shale GasTalked with my geology buddies. One works in pipelines, the other policy former head of the AGS.

Canadian Unconventional Gas Technology Road Map - cbm, shale gas, hydrates. June2006

100 mentions of cbm, 50 mentions of shale gas.

Completely missed... BLACK SWANCCSnuclearsustainables

We made $$ on Canadian Spirit - CSI

Last year, thanks to new drilling technologies, the nation's estimated total gas resources jumped by 35 percent from 1,532 trillion cubic feet to 2,074 trillion cubic feet. I couldn't believe these numbers the first time I heard them; that's enough natural gas to power our country through the 21st century. And as it turned out, that was just the start of the story.Last week, J.P. Morgan released a report saying that North America doesn't have 2,000 trillion cubic feet of natural gas in place. It has 8,000 trillion cubic feet. That's four times last year's new and improved numbers. This incredible surge in total gas resources will completely reshape the international energy landscape. Domestic natural gas is going to be so plentiful and so cheap that liquefied natural gas carriers from Qatar and the Middle East will stop coming to the U.S. They'll go to India and China instead. We just won't need them anymore.

Who benefits? EVERYONE of US!!!

The Land Grab is over...

“more than 50% of industry activity is dedicated to simply holding acreage,”

Environmental concerns - personal experience... regsAlso Methanex (MEOH) - methanolWestport Innovations (WPT.TO) LNG/CNG/NGVDynetek Industries (DNK.TO) light CNG cylinders Clean Energy Fuels (CLNE) natural gas fuel for transportationSelect service companies (GasFrac Energy - GFS)

Shale OilBakken, Niobrara, Eagle Ford (liquids rich gas), Cardium, Viking

Oily formations that would flow uneconomic rates with a conventional vertical well. Horizontal drilling AND multistage fraccing are GAME CHANGERS

Crescent Point (CPG.TO, CSCTF)

EORPrimary production, infill drilling, (H or V), waterflooding.1. Gas flooding mostly CO2 - Denbury Resources (DNR)2. Chemical flooding (alkaline surfactant polymer)3. Microbial - Titan Oil Recovery

microbes then seek and surround oil droplets in the sandstones and carbonate strata. This activity dislodges and breaks up oil droplets, which significantly increases oil recovery. Ken Gerbino 1. Thermal (Southern Pacific Resources - STP.TO)2. Novel - Powerwave

But after the 1964 Alaska earthquake, water well levels were off the charts; a well in South Dakota temporarily fluctuated by 7 metres. A well in Florida by 6 meters

Wavefront (WEE.V)Paid for itself in 3 months

Paid out in 3 months22% of proved US reservesonly 27 of OOIP produced

3 Coal Slides

CONCLUSIONPossible. Lack of will.

Debt/Delevering

BULLISH on ENERGYOil - look for resource plays that are economic today.Oil sandsBakken, Viking, Three Forks, Niobrara, Eagle Ford, Cardium Formations

Debt/Delevering

BULLISH on ENERGY

TECHNOLOGYEORDRILLINGSOLAR

Debt/Delevering

THE CASE FOR COAL

China’s energy consumption70% coal20% oil

JimLetourneau.com

Conference Special

Jim Letourneau, P.Geol.Big Picture Guy