Oil & Money 2015 Chair: Andrew Gould - Chairman BG Group Panel: Ashok Belani - Executive Vice President, Technology Schlumberger Kevin A. Neveu - President and Chief Executive Officer Precision Drilling Mark Papa - Partner Riverstone Holdings LLC

1. Oil & Money Conference
October 6, 2015
London
The Shale Revolution -
The Impact on North American Hydrocarbon Prices

2. 2
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Production(Mbbl/d)
US Crude Production by Month (Mbbl/d)
US Crude Production Summary
 Current Production: 9.4 MMbpd (July 2015)
 Year over Year Change: +0.6 MMbpd (July ’15 vs. July ’14)
 Data Release Date: September 2015
Source: U.S. Energy Information Agency
Nov-1970
10,044 Mbbbl/d
Sep-2008
3,980 Mbbbl/d
Jul-2015
9,358 Mbbbl/d
Sep-2009
5,561 Mbbbl/d
July shows a slight
uptick from June
driven by 150 kbpd
GoM growth; Lower
48 declined 56 kbpd
month over month

3. 3
(1,000)
(500)
0
500
1,000
1,500
2,000
YoYProductionGrowth(MBPD)
US Oil YoY Production Growth (MBPD)
US Oil Year Over Year Production Growth:
June 2012 – January 2016 (Projected)
Source: U.S. Energy Information Agency through June 2015
Jun-2015
610 MBPD
Dec-2014
1,560 MBPD
3-Yr Average: 1,070 MBPD
Oct-2015P
YoY domestic production
growth stops
Jan-2016P
YoY growth: (700) MBPD

4. 4
What will Happen to US Production Growth?
• At $45 WTI, there are no significant domestic oil plays that
are economic on a full cycle basis
• Domestic production has been growing at a 1.2 million
BPD YOY rate for the past 14 months. This YOY rate has
now fallen to 0.6 million BPD
• By October 2015 domestic YOY growth will be zero
• By January 2016 the YOY growth will be (0.7) million
BPD
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5. 5
Other Global Factors
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• US – Production will grow again if prices >$80
• Likely no shale oil outside North America for 5 – 10 years
• Technology cannot significantly further lower breakeven
costs in current environment
• Because of short term duration of downturn, likely only a
modest skills gap workforce crisis

6. 6
Price Prediction
• Prices will likely rise in 2016
• Stable price is likely $70-$75
• Long Term $90-$100 prices unlikely
• Long Term $45 price unlikely
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