presentation by Larry Makovich of IHS CERA at the Charlotte Chamber's 2012 Energy Summit

1. 2012 Energy Summit
The Business of Sustainability
IHS CERA • 16 November 2012

2. Terms of Use
The accompanying materials were prepared by IHS CERA Inc. (IHS CERA) and are not to be
redistributed or reused in any manner without prior written consent, with the exception of
client internal distribution as described below.
IHS CERA strives to be supportive of client internal distribution of IHS CERA content but
requires that
• IHS CERA content and information, including but not limited to graphs, charts, tables,
figures, and data, are not to be disseminated outside of a client organization to any third
party, including a client’s customers, financial institutions, consultants, or the public.
• Content distributed within the client organization must display IHS CERA’s legal notices
and attributions of authorship.
Some information supplied by IHS CERA may be obtained from sources that IHS CERA
believes to be reliable but are in no way warranted by IHS CERA as to accuracy or
completeness. Absent a specific agreement to the contrary, IHS CERA has no obligation to
update any content or information provided to a client.
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent. 2

3. Election 2012 and the US Power Business
• National Election Cycles Advance the Political Debate
around Power Issues
• Energy independence, security and efficiency
• Technology innovation and adoption
• A level playing field and an “all of the above” energy policy
• International competitiveness, jobs and clean energy
Source: IHS CERA
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
3

4. Share of US Power Generation (kWh), 1950–2011
100% Renewable/Other
Hydro
90%
Nuclear
80%
70% Natural Gas
60%
Oil
50%
40%
30%
Coal
20%
10%
0%
1950 1960 1970 1980 1990 2000 2010
Source: IHS CERA and US Energy Information Administration.
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
4

5. Historical Growth in US Major Shale Play Production
20
18
Eagle Ford
16
14
Marcellus
12
Bcf 10 Haynesville
per
Day 8 Fayetteville
6 Woodford
4
2 Barnett
0
2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: IHS CERA. Data source: Lippman Consulting. Note: Bcf = billion cubic feet.
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
5

6. Greenhouse Gas Emissions, History, and Policy Targets
7 Coal-fired Generation Carbon Footprint
Natural Gas–fired Generation Carbon Footprint
6
5 Economywide 80% Reduction from
Emissions Current Levels
4
Gigatons
3 Power Sector Share
of Target (40%)
2
1
0
1990 2000 2010 2020 2030 2040 2050
Source: IHS CERA and US Energy Information Administration.
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
6

7. Timeline of Wind Production Tax Credit (PTC) Extensions
2000: 2002: 2004: 2005: 2008:
PTC 2012:
PTC PTC PTC PTC PTC set
extended extended extended extended extended
through to expire
through through through through on
December December December December December
2009 December
2001 2003 2005 2007 31st
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1999: 2001: 2003: 2006: 2009:
PTC expired PTC PTC PTC PTC
on expired on expired on extended extended
December December December through through
31st 31st 31st December December
2008 2012
Source: IHS Emerging Energy Research
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
7

8. PowerShares WilderHill Clean Energy Portfolio
(PBW) versus S&P 500, 2005–12 Year-to-Date
2.0
S&P 500
1.8 PBW
1.6
Index 1.4
Value
(March 1.2
2005 1.0
= 1)
0.8
0.6
0.4
0.2
0.0
2005 2006 2007 2008 2009 2010 2011 2012
Source: IHS CERA.
Data source: Yahoo! Finance.
Note: The PowerShares WilderHill Clean Energy Portfolio is based on the WilderHill Clean Energy Index . The index is designed to deliver capital appreciation through the
selection of companies that focus on greener and generally renewable sources of energy and technologies that facilitate cleaner energy.
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.
8

9. For more information about this presentation or
IHS in general, please contact
Kyle Taylor
+1 303 466 3040
Kyle.Taylor@ihs.com
© 2012 IHS No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent. 9