21/10/2016

1

Upstream Adjustment to a New Oil Price Environment

Panel Deborah Byers – US Oil & Gas Leader and Managing Partner - Houston, Ernst & Young

John B. Hess – Chief Executive Officer, Hess Corporation

Ali Moshiri – President, Chevron Africa and Latin America Exploration & Production Company

Moderator Sadad Al Husseini – President, Husseini Energy Company

Barclays Survey: 200 Oil & Gas Companies

• N. America spending down 37%

• International spending down 17%

• Offshore spending down 34%

• L. America spending down 33%

EIA Survey: 112 Oil & Gas Companies

• Cash flow down 44%

• Capex down 37%

• Debt servicing 60% of cash flow

• Long term debt to equity > 52%

21/10/2016

2

92.0

94.0

96.0

98.0

100.0

Total

Mbd

EIA Sept. 2016 Data

Demand: + 1.5 Mbd/yr.

Supply: + 0.7 Mbd/yr

Can the upstream industry deliver in a stagnant oil market?