Analysis o of Produced a and Imported Crude O Oil in California - PowerPoint PPT Presentation

Analysis o of Produced a and Imported Crude O Oil in California California Department of Conservation, Division of Oil, Gas, and Geothermal Resources Jason Marshall, Chief Deputy Director, Department of Conservation Bill Bartling, Chief Deputy Director, Division of Oil, Gas, And Geothermal Resources August 2018

Production and Price 800,000 120 700,000 100 600,000 80 thousands of barrels 500,000 Oil Price 400,000 60 300,000 40 200,000 20 100,000 0 0 1981 1986 1991 1996 2001 2006 2011 2016 Total Oil California Production Oil Price

% Change 10% 8% 6% 4% % change year on year 2% 0% 1980 1985 1990 1995 2000 2005 2010 2015 2020 -2% -4% -6% -8% -10% Total Oil Calfornia Production

Selected US Production By Year and Price 1,400,000 $100.00 $90.00 1,200,000 $80.00 1,000,000 $70.00 1000’S OF BBLS PER YEAR $60.00 800,000 $ PER BARREL $50.00 600,000 $40.00 $30.00 400,000 $20.00 200,000 $10.00 0 $0.00 2012 2013 2014 2015 2016 2017 Texas N. Dakota Alaska California N. Mexico Oklahoma Price

US Performance Measures PRAC = Proved Reserve Acquisition Cost FDC = Finding and Development Costs RRC = Reserve Replacement Cost Revisions = restating of booked reserves due to low oil prices

California Production by Field by Year 40,000,000 BARRELS PER YEAR 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Aliso Canyon Ant Hill Antelope Hills Antelope Hills, North Arroyo Grande Asphalto Bandini Bardsdale Barham Ranch Beer Nose Belgian Anticline Bellevue Bellevue, West Belmont Offshore Belridge, North Belridge, South Beverly Hills Big Mountain Blackwells Corner Brea-Olinda Buena Vista Burrel Cabrillo Canal Canfield Ranch Carneros Creek Cascade Casmalia Castaic Hills Cat Canyon Cheviot Hills Chico-Martinez Cienaga Canyon Coalinga Coles Levee, North Coles Levee, South Comanche Point Coyote, East Cuyama, South Cymric Deer Creek Del Valle Devils Den Edison El Segundo Elk Hills Elwood, South, Offshore Fruitvale Greeley Hasley Canyon Helm Holser Honor Rancho Huntington Beach Hyperion Inglewood Jacalitos Jasmin Kern Front Kern River Kettleman Middle Dome Kettleman North Dome Landslide Las Cienegas Livermore Lompoc Long Beach Long Beach Airport Los Angeles Downtown Los Angeles, East Lost Hills Lost Hills, Northwest Lynch Canyon Mahala McCool Ranch McDonald Anticline McKittrick Midway-Sunset Montalvo, West Montebello Monument Junction Mount Poso Mountain View Newhall-Potrero Newport, West Oak Canyon Oak Park Oakridge Oat Mountain Ojai Olive Orcutt Oxnard Paloma Placerita Playa Del Rey Pleito Poso Creek Pyramid Hills Railroad Gap Raisin City Ramona Richfield Rincon Rio Bravo Rio Viejo Riverdale Rose Rosecrans Rosecrans, South Rosedale Rosedale Ranch Round Mountain Russell Ranch Salt Lake Salt Lake, South San Ardo San Miguelito San Vicente Sansinena Santa Clara Avenue Santa Fe Springs Santa Maria Valley Santa Susana Sargent Saticoy Sawtelle Seal Beach Semitropic Sespe Shafter, North Shiells Canyon South Mountain Stockdale Tapia Tapo Canyon, South Tejon Tejon Hills Tejon, North Temescal Ten Section Timber Canyon Torrance Torrey Canyon Union Avenue Ventura Wayside Canyon West Mountain Wheeler Ridge White Wolf Whittier Wilmington Yowlumne Zaca

Permitting Trends

Permitting and Price 5000 140 4500 Relationship of: 4000 120 Permits Requested • Permits Issued 3500 Wells Noticed, Permitted and Drilled 100 CA Crude Oil Price ($/Barrel) Wells Drilled • 3000 Price of Oil • 80 2500 2000 60 1500 40 1000 20 500 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Total NOI (Requests to Drill) Drilling Permits Issued Wells Drilled Price of Oil

Well Stimulation and Price 900 $120 849 Well Stimulation = 800 745 Hydraulic $100 • 672 700 Fracturing 623 Number of Treatments 600 $80 Price of CA Crude Oil Acid Matrix • Stimulation 500 $60 Acid Fracturing • 400 300 $40 200 160 147 $20 92 100 41 0 $0 2011* 2012* 2013* 2014** 2015** 2016 2017 2018 (1st Qtr.) Year Well Stim. Treatments Price of Oil * Statistics from FracFocus. ** Statistics from interim reporting period.

Permitting And Oil Operations Locations

Notices Received 2008 - 2018

Permits Issued 2008 - 2018

Recent Regulatory Actions

• Well Stimulation • Gas Storage Facility • Underground Injection Control (in progress) • Idle Well Regulations (in progress) • Safe Drinking Water Act/Aquifer Exemptions (in progress)

Summary Declining production in-state o Historically price increases have not driven CA o production up Permits to maintain declining production likely to o continue in existing fields Regulatory modernization is ongoing o