API 2009 Energy IQ Presented by Harris Interactive 5/22/09

Methodology Interviews were conducted online Interviews were conducted from April 30 – May 8 Interviews were conducted among: 1,298 U.S. general public 18+ respondents Note: Green highlighting indicates correct answer choice

Interviews were conducted online

Interviews were conducted from April 30 – May 8

Interviews were conducted among:

1,298 U.S. general public 18+ respondents

Note: Green highlighting indicates correct answer choice

Executive Summary In general, the public has the least knowledge (and often times can’t even make an educated guess) on the benefits that the oil and natural gas industry provides, such as: Amount paid in taxes Pension plan/retirement fund ownership of stocks Investments in emerging energy technologies Employment of 6 million Americans Role of North America and Other Countries in Oil and Natural Gas In general, the public overestimates the amount of control the U.S. has over the world’s oil. Though the majority still believe Saudi Arabia is largest oil supplier to U.S. and most assume North America plays a smaller role in oil production than it actually does, people still cannot contextualize the size of ExxonMobil. Future Energy Demands Though most overestimate the amount of energy we’ll need in the future, there is a general hope that fossil fuels, and oil and natural gas specifically, will not play as large a role in our energy future as they are projected to.

In general, the public has the least knowledge (and often times can’t even make an educated guess) on the benefits that the oil and natural gas industry provides, such as:

Amount paid in taxes

Pension plan/retirement fund ownership of stocks

Investments in emerging energy technologies

Employment of 6 million Americans

Role of North America and Other Countries in Oil and Natural Gas

In general, the public overestimates the amount of control the U.S. has over the world’s oil.

Though the majority still believe Saudi Arabia is largest oil supplier to U.S. and most assume North America plays a smaller role in oil production than it actually does, people still cannot contextualize the size of ExxonMobil.

Future Energy Demands

Though most overestimate the amount of energy we’ll need in the future, there is a general hope that fossil fuels, and oil and natural gas specifically, will not play as large a role in our energy future as they are projected to.

Executive Summary Gas Prices Many do not understand the extent to which the price of crude oil determines gasoline prices. Taxes and Earnings Even though the public tends to overestimate the role of taxes in the price they pay at the pump, they assume the oil and natural gas industry pays less in taxes than they actually do. Public also overestimates the amount of earnings per dollar of sales. Industry Activity Overall, the benefits that the industry provides are not recognized by the public. Most do not have a clear understanding of corporate stock ownership. People generally overestimate the amount that corporate management owns and underestimate the amount owned by pension plans and retirement funds. Private industries receive more credit for investments in energy technologies. People underestimate the amount invested by oil and natural gas companies. Many don’t realize the number of people who are employed by the oil and natural gas industry.

Gas Prices

Many do not understand the extent to which the price of crude oil determines gasoline prices.

Taxes and Earnings

Even though the public tends to overestimate the role of taxes in the price they pay at the pump, they assume the oil and natural gas industry pays less in taxes than they actually do.

Public also overestimates the amount of earnings per dollar of sales.

Industry Activity

Overall, the benefits that the industry provides are not recognized by the public.

Most do not have a clear understanding of corporate stock ownership. People generally overestimate the amount that corporate management owns and underestimate the amount owned by pension plans and retirement funds.

Private industries receive more credit for investments in energy technologies. People underestimate the amount invested by oil and natural gas companies.

Many don’t realize the number of people who are employed by the oil and natural gas industry.

Executive Summary: Subgroup Analysis Though the general public has a low Energy IQ overall, the following groups have higher Energy IQs than average: Males College graduates/post graduates Higher income Republicans Conservatives

Though the general public has a low Energy IQ overall, the following groups have higher Energy IQs than average:

Males

College graduates/post graduates

Higher income

Republicans

Conservatives

Role of North America and Other Countries in Oil and Natural Gas © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Misconception Remains that Saudi Arabia is Largest U.S. Oil Supplier Q. In 2008, which of the following countries was the largest U.S. supplier of imported oil ? Saudi Arabia – 53% Canada – 12% Venezuela – 13% China – 2% Not sure – 20% ?

Q. In 2008, which of the following countries was the largest U.S. supplier of imported oil ?

Overestimation of Oil From Persian Gulf Countries Q. In 2008, what percent of oil the U.S. consumed came from the Persian Gulf countries ? Less than 15% 15% to 30% 31% to 45% 46% to 60% Not sure 7% 20% 19% 26% 28%

Q. In 2008, what percent of oil the U.S. consumed came from the Persian Gulf countries ?

Underestimation of Oil Produced in North America Q. In 2008, what percent of oil and natural gas the U.S. consumed was produced in North America ? Less than 35% 35% to 50% 51% to 65% 66% to 80% Not sure 42% 15% 9% 5% 29%

Q. In 2008, what percent of oil and natural gas the U.S. consumed was produced in North America ?

Overestimation of U.S. Control of World’s Oil Q. What percent of the world’s proven oil reserves do U.S. oil companies control? 0 to less than 10% 10% to less than 20% 20% to less than 30% 30% to less than 40% Not sure 14% 25% 19% 9% 34%

Q. What percent of the world’s proven oil reserves do U.S. oil companies control?

Assumption that ExxonMobil is Among Largest Holders of Oil Reserves Q. Where does ExxonMobil, the largest U.S. oil and natural gas company, rank in size among the world’s largest holders of oil reserves?

Q. Where does ExxonMobil, the largest U.S. oil and natural gas company, rank in size among the world’s largest holders of oil reserves?

Future Energy Demands © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Overestimation of Amount of Energy Needed in Future Q. How much more energy is the U.S. going to need in the next 20 years? 0 to 5% 6% to 10% 11% to 15% 16% to 21% Not sure 1% 5% 11% 50% 33%

Q. How much more energy is the U.S. going to need in the next 20 years?

Majority Believe Fossil Fuels Will Play Lesser Role in Future Q. According to 2008 government projections, about what percent of global energy demand in 2030 will be met by fossil fuels , such as oil, natural gas and coal?

Q. According to 2008 government projections, about what percent of global energy demand in 2030 will be met by fossil fuels , such as oil, natural gas and coal?

Some Recognition, But Generally Underestimating Oil and Natural Gas Role in Energy Future Q. Assuming huge increases in alternative energy sources, what percentage of the U.S. energy demand will be met by oil and natural gas in 2030? 0 to 15% 16% to 30% 31% to 45% 46% to 60% Not sure 6% 22% 19% 16% 37%

Q. Assuming huge increases in alternative energy sources, what percentage of the U.S. energy demand will be met by oil and natural gas in 2030?

Domestic Acces © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Overestimation of Impact of Offshore Drilling on Imports. Lack of Awareness on Revenues Created From it. Q. What percentage of oil imports could be displaced if oil and natural gas companies were allowed to produce resources off the U.S. coasts? Q. How much did federal, state and local governments receive in 2008 from the oil and natural gas industry from revenues and bonus bids to lease offshore areas for energy exploration ?

Q. What percentage of oil imports could be displaced if oil and natural gas companies were allowed to produce resources off the U.S. coasts?

Gas Prices © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Overestimation of Impact of Taxes on Gas Prices. Lack of Understanding on Extent Price of Crude Controls Price at Pump. Q. In 2008, the price of crude oil accounted for what percentage of gasoline prices at the pump? Q. In 2008, federal, state and local taxes accounted for what percentage of gasoline prices at the pump?

Q. In 2008, the price of crude oil accounted for what percentage of gasoline prices at the pump?

Taxes and Earnings © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Public Assumes the Worst about Industry and Taxes Q. How much did the oil and natural gas industry pay in taxes over the past 3 years? Q. How much do oil companies pay in income taxes as a share of their income?

Q. How much did the oil and natural gas industry pay in taxes over the past 3 years?

Overestimation of Industry Earnings Q. In 2008, how many cents did the U.S. oil and natural gas industry earn on every dollar of sales?

Q. In 2008, how many cents did the U.S. oil and natural gas industry earn on every dollar of sales?

Industry Activity: Stocks, Investments, Employment © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Lack of Awareness on Pensions/Retirement Stock Ownership. Overestimation of Corporate Management Ownership Q. What percentage of U.S. oil companies’ stocks are owned by pension plans and retirement accounts ? Q. What percent of U.S. oil companies’ stocks are owned by corporate management ?

Q. What percentage of U.S. oil companies’ stocks are owned by pension plans and retirement accounts ?

Assumption that Private Industry Spends Most on Energy Technologies. Industry Receives Little Credit. Q. From 2000 to 2007, U.S. oil and natural gas companies invested how many billions of dollars on emerging energy technologies in North America (such as biomass, wind, solar, alternative fuel vehicles, gas-to-liquids and oil shale)? Q. Which of the following groups spent the most on zero and low-carbon technologies since 2000?

Q. From 2000 to 2007, U.S. oil and natural gas companies invested how many billions of dollars on emerging energy technologies in North America (such as biomass, wind, solar, alternative fuel vehicles, gas-to-liquids and oil shale)?

Lack of Awareness on Number of Industry Jobs Q. How many people in the U.S. are indirectly and directly employed by the oil and natural gas industry? Less than 1 million people 1 million to less than 5 million people 5 million to 8 million people More than 8 million people Not sure 14% 26% 15% 8% 37%

Q. How many people in the U.S. are indirectly and directly employed by the oil and natural gas industry?

Appendix: Summary Tables of Responses © 2007, Harris Interactive Inc. H A R R I S I N T E R A C T I V E

Summary Table of Correct Responses SUMMARY TABLE OF CORRECT RESPONSES Q790 – Group spent most on low carbon technologies since 2000 - Oil and natural gas industry 23% Q770 - % of gas prices accounted for by taxes - 11% to 15% 17% Q725 - % of oil imports displaced if companies allowed to produce resources off the coast - 16% to 20% 17% Q750 - % of oil company stocks owned by pension plans/retirement accounts - 31% to 45% 17% Q795 - % energy demand met by oil and natural gas in 2030 - 46% to 60% 16% Q745 - # people employed by industry - 5 million to 8 million people 15% Q765 - % of gas prices accounted by price of crude - 61% to 80% 15% Q775 - % proven oil reserves controlled by U.S. oil companies - 0 to less than 10% 14% Q730 – Amount govt received in 2008 from industry from revenues and bonus bids to lease offshore areas - $20 to less than $30 billion 13% Q760 – Cents earned on dollar of sales - 0 to 10 cents 12% Q700 – Largest U.S. supplier of oil - Canada 12% Q735 – Amount industry paid in taxes over past 3 years - $200 to less than $300 billion 10% Q720 - % of 2030 global energy demand met by fossil fuels - 85% 10% Q740 – Amount oil companies pay in income taxes - 31% to 45% 9% Q785 – Amount oil and natural gas companies invest in energy technologies - More than $100 billion 8% Q705 - % of oil U.S. consumed from Persian Gulf countries - Less than 15% 7% Q780 – Rank of ExxonMobil in size among world’s largest holders of oil reserves - Not among the top 15 largest oil reserve holders 6% Q715 – Amount of energy U.S. will need in next 20 years - 6% to 10% 5% Q755 - % of oil company stocks owned by corporate management - 0 to 5% 5% Q710 - $ of oil U.S. and natural gas U.S. consumed produced in North America - 66% to 80% 5%

Summary Table of Not Sure Responses SUMMARY TABLE OF NOT SURE RESPONSES Q730 – Amount govt received in 2008 from industry from revenues and bonus bids to lease offshore areas - $20 to less than $30 billion 49% Q750 - % of oil company stocks owned by pension plans/retirement accounts - 31% to 45% 46% Q735 – Amount industry paid in taxes over past 3 years - $200 to less than $300 billion 43% Q755 - % of oil company stocks owned by corporate management - 0 to 5% 41% Q785 – Amount oil and natural gas companies invest in energy technologies - More than $100 billion 40% Q720 - % of 2030 global energy demand met by fossil fuels - 85% 38% Q740 – Amount oil companies pay in income taxes - 31% to 45% 38% Q725 - % of oil imports displaced if companies allowed to produce resources off the coast - 16% to 20% 37% Q745 - # people employed by industry - 5 million to 8 million people 37% Q795 - % energy demand met by oil and natural gas in 2030 - 46% to 60% 37% Q760 – Cents earned on dollar of sales - 0 to 10 cents 35% Q775 - % proven oil reserves controlled by U.S. oil companies - 0 to less than 10% 34% Q790 – Group spent most on low carbon technologies since 2000 - Oil and natural gas industry 34% Q715 – Amount of energy U.S. will need in next 20 years - 6% to 10% 33% Q765 - % of gas prices accounted by price of crude - 61% to 80% 31% Q780 – Rank of ExxonMobil in size among world’s largest holders of oil reserves - Not among the top 15 largest oil reserve holders 31% Q710 - $ of oil U.S. and natural gas U.S. consumed produced in North America - 66% to 80% 29% Q705 - % of oil U.S. consumed from Persian Gulf countries - Less than 15% 28% Q770 - % of gas prices accounted for by taxes - 11% to 15% 27% Q700 – Largest U.S. supplier of oil - Canada 20%

Summary Table of Correct Responses – Tracking Data SUMMARY TABLE OF CORRECT RESPONSES 2009 2008 2007 Q750 - % of oil company stocks owned by pension plans/retirement accounts - 31% to 45% 17% 15% 16% Q775 - % proven oil reserves controlled by U.S. oil companies - 0 to less than 10% 14% 16% 14% Q700 – Largest U.S. supplier of oil - Canada 12% 11% 17% Q705 - % of oil U.S. consumed from Persian Gulf countries - Less than 15% 7% 7% 8%

API 2009 Energy IQ Presented by Harris Interactive 5/22/09