U.S. NORTH AMERICAN ENERGY EXPORTS

1 Copyright 2017 AMERICAN petroleum institute (API), all rights reserved. Digital Media | DM2017-011 | | PDFCANADA MEXICO Refined ProductNatural GasElectricity Power(*2015 data)Crude Oil Crude Oil (58% of Crude EXPORTS ) Kerosene Type Jet Fuel (21% of Jet Fuel EXPORTS ) Motor Gasoline Blending Components (22% of EXPORTS ) Total Refined Products (12% of EXPORTS ) Pipeline Natural Gas (36% of EXPORTS )#1 for:#2 for: Finished Motor Gasoline (52% of Gasoline EXPORTS ) Motor Gasoline Blending Components (56% of EXPORTS ) Distillate Fuel Oil (15% of EXPORTS ) Total Refined Products (19% of EXPORTS ) Pipeline Natural Gas (64% of EXPORTS ) Kerosene Type Jet Fuel (19% of EXPORTS ) petroleum Coke (9% of EXPORTS )#1 for:#2 million jobs supported107,800 Direct Refinery JobsNorth AMERICAN ENERGY markets are highly integrated and interdependent (see API backgrounder NORTH AMERICAN ENERGY ).

2 The NORTH AMERICAN Free Trade Agreement (NAFTA) has played a critical role supporting and growing NORTH AMERICAN ENERGY integration, interdependence and ENERGY security by eliminating tariffs for crude oil, gasoline, kerosene-type jet fuel and other refined products, and for ENERGY -intensive manufactured goods. NAFTA also has liberalized ENERGY trade, provided investment protection and served as the foundation for recent access to Mexico s hydrocarbon NORTH AMERICAN ENERGY EXPORTSFIGURE 1. NORTH AMERICA ENERGY EXPORTS , 20164 REASONS NEEDS NAFTA Oil production from shale resources, made available by hydraulic fracturing and horizontal drilling, has led a revolution in crude oil production. As a result, imports of crude oil by the decreased from 9,213 thousand barrels per day (Kb/d) in 2010 to 7,363 Kb/d in 2015.

3 #1 SUPPORTS JOBS million natural gas and oil industry jobs Maintains robust demand for ENERGY -intensive manufactured goods such as plastics, petrochemicals and fertilizers with natural gas as a heat and raw material source. Supports refining sector and its jobs through supplies of Canadian and Mexican heavy crude oil. #2 BENEFITS CONSUMERS NORTH America s integrated ENERGY market is more efficient than separate markets, resulting in more affordable ENERGY for consumers in all three countries. #3 STRENGTHENS OUR ENERGY SECURITY NORTH America is nearing ENERGY self-sufficiency. According to EIA, the production of petroleum and other liquids by the , Canada and Mexico soon will outpace their consumption. NORTH America is less reliant on other suppliers and less subject to potential supply disruptions because of free and safe ENERGY trade.

4 Has become the swing producer in global ENERGY markets, making them less subject to suppliers who would use ENERGY as a political weapon. Thanks to free trade, Mexico is the No. 1 export market for natural gas and refined products and the No. 4 export market for upstream oil and gas equipment. #4 HELPS OPEN MARKETS direct oil and natural gas investments in Canada totaled $ billion in 2015 for extraction and $ billion in petroleum refining. Free and integrated ENERGY markets, easing restrictions on foreign investment, have been solidified in Canada, and there is the potential for the same investment climate in ,4002,1002,8003,5004,2004,9005,6006,3007 ,000 Rest of WorldCanada and Mexico2010201120122013201420152016 FIGURE 2. CRUDE OIL IMPORTS, 2010 2016 (Thousand Barrels per Day, Annual Average) Copyright 2017 AMERICAN petroleum institute (API), all rights reserved.

5 Digital Media | DM2017-011 | | PDFSOURCES: Compiled by API s Steve Crookshank, Katie Ehly, Michael Flickinger, Bryan Just, Marcus Koblitz and Aaron Padilla. Figure 1: Economic Impacts of the Natural Gas and Oil Industry: Table 4. Direct Impact of the Oil and Natural Gas Industry in the Economy by Sub-sector, 2015, Page 12: ~/media/Files/Policy/ # 1; ExxonMobil Joliet, Ill.: # 2; BP Whiting, IND.: # 3; Shell Deer Park: # 4; Chevron Pascagoula, Miss: Products: to Do: Oil Transportation & Storage: OXICOOOOOCRUDECRUDER efined ProductNatural GasElectricity Power(*2015 data)Crude OilRefined ProductCrude OilNAFTA AND THE REFINING SECTOR A total of 81 refineries imported crude oil from either Canada or Mexico in 2016, turning that crude into products Americans use every day. These refineries are configured to process heavy crudes from Canada and Mexico, supporting thousands of jobs.

6 Canada is the United States No. 1 source for imported crude oil, and imports of Canadian crude have increased 61 percent over the past five years. refineries that import Mexican crude also supply refined products to the domestic market, as well as EXPORTS back to NORTH AMERICAN ENERGY EXPORTSFIGURE 3. NORTH AMERICA ENERGY EXPORTS , 2016 FOUR REFINERIES, FOUR CASE STUDIESA number of refineries rely on supplies of crude oil from Canada and Mexico which they turn into beneficial products we use daily, supporting domestic jobs and economic growth. A look at four facilities helps illustrate these points:#1 EXXONMOBIL JOLIET, ILL. WORKERS: 600 INFLOW ARROW FROM CANADA: 250,000 BPD OUTLFLOW ARROW TO : 9 MILLION GALLONS GASOLINE/DIESEL FUEL DAILY #2 BP WHITING, IND. WORKERS: 1,650 INFLOW ARROW FROM CANADA: 320,000 BPD OUTFLOW ARROWS TO : GAS/DIESEL PRODUCTION FOR REFINERY: 14 MILLION GALLONS #3 SHELL/PEMEX DEER PARK, TEXAS WORKERS: 1,500 INFLOW ARROW FROM MEXICO: 170,000 BPD OUTFLOW TO : GAS/DIESEL TO : 6 MILLION GALLONS OUTFLOW TO MEXICO: 136,000 BPD#4 CHEVRON PASCAGOULA, MISS.

7 WORKERS: 1,593 INFLOW ARROW FROM MEXICO OR APPROXIMATION: 48,000 BPD OUTFLOW ARROW TO : 8 MILLION GALLONS FOR GASOLINE/DIESEL PRODUCTION