World Petroleum Council• Introduction to the WPC organisation, mission and values• Challenges and Opportunities in the Petroleum Industry• Responsibly Energising a Growing World

Renato T Bertani, President, WPC - June 2012

AlgeriaAngolaArgentinaAustraliaAustriaAzerbaijanBahrainBelgiumBrazilCanadaChinaColombiaCroatiaCubaCzechDenmarkEgyptFinlandFranceGabonGermanyHungaryIndia

IndonesiaIranIsraelJapanKazakhstan

KenyaKoreaKuwaitLibyaMacedonia

MexicoMoroccoMozambiqueNetherlandsNigeria

NorwayOmanPakistanPanamaPeru

PolandPortugalQatarRomaniaRussiaSaudi ArabiaSerbiaSierra LeoneSlovakiaSloveniaSouth AfricaSpainSurinameSwedenThailandTrinidad & TobagoTurkeyUKUruguayUSAVenezuelaVietnamMISSION

The mission of the World Petroleum Council is to promote the sustainable development, production and consumption of oil, gas and other energy resources for the benefit of all

Member Countries

WPC Member Countries

• The World Petroleum Council is a non political entity accredited as a Non Governmental Organization by the United Nations. The WPC currently has 65 member countries, representing over 95% of the world’s oil and gas production and consumption. Each member country has established a National Committee represented in the Council, the supreme governing body of the WPC. The Secretariat of the WPC is based in London, UK

WPC Council65 National Committees

Executive Committee

Congress Programme Committee

YouthCommittee

SecretariatDirector General Communication Director

Organisation Chart

Our Values

VALUES

The World Petroleum Council firmly believes that the activities of the petroleum industry must be predicated in certain fundamental values:

• Respect for individuals and communities• Reliance on the highest technological solutions• Highest business ethical and governance standards• Creation of value to all stakeholders.

Strategic ActivitiesSTRATEGIC ACTIVITIESTo accomplish its goals the WPC carries a number of strategic activities in cooperation with its members, including:

World Petroleum Congress

Moscow, June 2014“Responsibly Energising a Growing World”

Youth Activities Youth Committee set up multiple task forces to engage young peopleWPC Mentoring Programme now in its 2nd cycleWPCYouthConnect website continued as online discussion forum

Youth Forum Calgary, October 2013 “Unconventional Solutions for an Unconventional World”

Inter Congress Activities

Engagement with industry related entitiesAd hoc studies and publicationsCommunication with membership and stakeholders

WPC Legacy Fund Using congress proceeds to benefit local communities

WPC Global Knowledge Center

Web base data center, accessible to all National Committees, to be populated with articles, presentations and key industry statistics, aiming at dissemination of best practices among our member countries

NC Expert Workshops Focused discussions on key issues and technologies; main results of the workshop to be delivered as a Special Session during the Congress

The value we add THE VALUE WE ADD TO OUR MEMBERS

In addition to promoting the petroleum sector as whole, the WPC offers many opportunities specifically designed to benefit our members. These include:

• Representation in the Council and various committees• Opportunity to host the World Petroleum Congress and regional/thematic conferences• Nomination for highly visible speaking roles • Showcasing of member country industry• Enhanced outreach to all stakeholders• Promoting best practices on transparency, ethics and social responsibility

• Oil price• Peak oil• IOC’s / NOC’s• Energy security• Access to acreage• Social licence to operate • Climate change• Water• Youth and gender• Geopolitics

Addressing all aspects of the petroleum industry

The Challenge:Sustainable supply of the ever growing energy demand

Key Drivers to Energy Consumption

Population Growth

HighMed

Low

19603 bn people

20509 bn people?

Current Energy ScenarioTotal Energy Consumption

Canad

a

S Arab

ia US

S Korea

Russia

Japan

German

yFra

nce UKSp

ain Iran

Italy

China

Mexico

Brazil

Indonesia

India0

10

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0

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Energy Consumption and PopulationSelected Countries (2010)

Ener

gy C

onsu

ption

(boe

/cap

)

Popu

latio

n (M

illio

n Pe

ople

)

World Average: 13.46 boe/cap/yrIncrease to bring CMBII to Spain level: 126 mmboe/day

Energy Inclusion

48.845.9

13.910.5 10.1

6.4 6.4 5.1 5.1 5.1 4.3 4.2 4.0 3.5 3.4 3.0 2.8 2.4

56.1

0

15

30

45

60

Energy Consumption (2010)MM boe/day

Source: BP Statistical Review, 2011

Current Energy ScenarioTotal Energy Consumption

Total Consumption: 241 MMboe/day

12

Source: EIA

World Energy Demand Growth

504

721

• Energy consumption will grow by approximately 40% until 2030• The largest growth will be in developing countries

2005 2008 2010 2015 2020 2025 20300

50

100

150

200

250

300

350

400

World Energy ConsumptionMM boe/day

Non-OECDOECD

0.6%

2.3%

1.6%Source: EIA

257

356

Source: EIA , International Energy OutlookIssue: October 2011

13

World Energy Demand Growth

• Fossil fuels (oil, natural gas and coal) will continue to be the main sources of energy• Supply of renewable sources of energy will grow significantly, but still remain a complementary source of energy

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World Marketed Energy Use by Fuel Type MMboe/day

LiquidsNatural GasCoalNuclearRenewables

Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)

Source: EIA OutlookIssue: October 2011

World Oil Reserves

• World resource base is expanding in view of new technologies and price deck

S. Arabia

Venez*Canada*

IranIraq

KuwaitUAE

RussiaLibya

NigeriaKazakh

QatarUS China

BrazilAlgeria

MexicoAngola

Azerbaijan

Ecuador

RoW0

50

100

150

200

250

300

260211

175138 115 102 98

60 46 37 30 25 21 20 13 12 12 10 7 7

75

Oil Reserves (2011) Billion bo

Total Reserves: 1.471 trillion boR/P = 46 yrs(*) Including extra heavy and oil sands

Source: EIA , International Energy OutlookIssue: October 2011

15

World Liquid Fuel Consumption

• Liquid fuels will continue as the largest component of the energy matrix• Growth of oil production, in both Opec and non Opec countries will meet most of the demand• Non-conventional liquid fuels also growing significantly

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World Crude Oil and Liquid Fuels ConsumptionMMb/day

Non ConvConv Non OpecConv OpecCurrent Prod Proj

Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)

Source: EIA OutlookIssue: October 2011 108

87.8

Saudi Arabia

Iraq Other Middle ...

West Africa

Iran South America

North Africa

0

4

8

12

16

Opec Liquids Productionmmb/day

20082035

Source: EIA , International Energy OutlookIssue: October 2011

Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)

Key Drivers and Constraints Liquid Production Changes

0

4

8

12

16

Non Opec Liquids ProductionMmb/day

20082035

• New production from unconventional, heavy crude, ultra deep waters and reservoirs• Increasingly more challenging and more expensive• Increasingly more stringent HSE requirements

17Lower Aptian reconstitution (122 m.y.)

Pre Salt deep offshore Brazil

Major New Oil and Gas Developments

Orinoco Extra heavy oil

Ultra deep Gulf of Mexico

18

Source: IHS, ANP, Woodmac

Santos Basin largest oil discoveries (mmbo)

Major New Oil and Gas Developments

RussiaIran

QatarTurkmenistan

Saudi Arabia

US UAEVenezuela

NigeriaAlgeria

IraqIndonesia

Australia

ChinaMalaysia

EgyptNorway

Kazakhstan

Kuwait

Canada

Uzbekistan

LibyaIndia

RoW0

400

800

1200

1600

1581

1046

894

284283

273213

193187

159112

108103 99 85 78 72 65 63 61 55 55 51

489

World Gas Reserves (2010) -TCFSource: BP Statistical Review, 2011

• World Reserves: 6,608 tcf• R/P = 58.6 yrs• USA gas shale resources: 6,600 tcf

World Gas Reserves

• World resource base is expanding in view of new technologies and price deck

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Natural Gas Consumptiontcf/year

Non OECDOECD AsiaOECD EuropeOECD Americas

Source: EIA , International Energy OutlookIssue: October 2011

World Gas Consumption

Source: EIA , International Energy OutlookIssue: October 2011

World Natural Gas Supply

• Natural gas production grow will be mainly from the Middle East, Asia and Eurasia, with increasing contribution of non conventional sources

2008 2009 2015 2020 2025 2030 20350

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Natural Gas Productiontcf/year

RoWRussiaOECD Non ConventionalOECD Conventional

0 5 10 15 20

Natural Gas Production Change2008-2035 tcf/year

• New production from unconventional, stranded gas, remote areas• Tendency to gas commoditization (LNG, GTL)• Regional pipelines constrained by costs, geopolitical uncertainty

22

Resource Base Shales• Source Rock is the same as the Reservoir• No secondary migration• Gas generation window• Fracturing and microfacturing

The promise of the unconventional natural gas resources

23

Investment decisions: challenges and pitfalls

124,168 Wells

Source: EIA , International Energy OutlookIssue: October 2011

487,627 Wells

Global LNG Trade

The Opportunity:Long term returns to all stakeholders

25

MONEY$20 trillion until 2030IEA Energy Outlook

MILLSIncreasing demand for

steel, rigs, supplies

MINDSRapidly aging HR base,

Ingredients for SuccessThe success of our industry as whole more than ever will require: • Investment in people and technology• Superior management and deployment of capital• Highest standards of Health, Safety and Environment• Social Responsibility and Ethics as part of the Business Model

The WPC supports the 10 principles for business sustainability of the United Nations Global Compact.

Human Rights•Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and •Principle 2: make sure that they are not complicit in human rights abuses.

Labour•Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; •Principle 4: the elimination of all forms of forced and compulsory labour; •Principle 5: the effective abolition of child labour; and •Principle 6: the elimination of discrimination in respect of employment and occupation. Environment•Principle 7: Businesses should support a precautionary approach to environmental challenges; •Principle 8: undertake initiatives to promote greater environmental responsibility; and •Principle 9: encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption•Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

The WPC supports the 10 principles for business sustainability of the United Nations Global Compact. There are 183 oil and gas participants, including most majors, large independents, national companies and services companies.

UN Global Compact Principles

We hope to see you at the 21st WPCin Moscow, June 15th – 19th, 2014

Responsibly Energising a Growing World