The Chemicals Industry is Making Significant Investments. Based on U.S. Ethane. 9. Page 10. Enterprise Ethane Export Fac
ENTERPRISE PRODUCTS PARTNERS L.P.
RICE UNIVERSITY BAKER INSTITUTE GLOBAL TRANSITIONS
September 2017 Tony Chovanec
Senior Vice President
EPD: Natural Gas, NGLs, Crude Oil, Petrochemicals and Refined Products
2
The U.S. Shale Energy RevoluDon
3
The U.S. Shale RevoluDon and Savings for American Consumers
Billion of U.S. Dollars
$300
Gas Cost = 2016 Consump1on x Historic Prices
$250
Shale Revolu1on Cumula1ve Savings*
$200 $150 $100
$8.90/ MMBtu
$50
$4.40/ MMBtu
$0 at 2008 Prices
Billion of U.S. Dollars
$700
at 2010 Prices
$2.50/ MMBtu at 2016 Prices
Natural Gas Savings: $1.2 Trillion Oil Savings: $1.1 Trillion Total Savings: $2.3 Trillion ----------------------------------------------------- For comparison QE1 was ≈$1.1 Trillion following 2008 financial crisis
Crude Cost = 2016 Consump1on x Historic Prices *Using 2008 as a star5ng point and 2008 prices for comparison
$600 $500 $400 $300 $200
$99.8/Bbl
$79.6/Bbl
$100
$43.5/Bbl
Sources: EPD Fundamentals, EIA and NYMEX
$0 at 2008 Prices
at 2010 Prices
at 2016 Prices 4
Rig Counts Don't Tell the Whole Story
5
Crude Oil Basin Returns
6
Natural Gas Basin Returns
7
To Match Refiners Preferred Feed Slate:
Expect light oil exports & heavy / medium imports
8
The Chemicals Industry is Making Significant Investments Based on U.S. Ethane
9
Enterprise Ethane Export Facility Largest of its kind
10
U.S. LPG Demand Flat As ProducDon Rises, Increased Exports are Required
11
Asia LPG Import Trends
12
U.S. LPG…Changing Lives Around the World
13
U.S. LNG Exports Grow SubstanDally Next 4 Years
14
Exports of U.S. Natural Gas to Mexico ConDnues to Grow
15
Enterprise Terminal/Dock FaciliDes
16
Forward-looking statements
This presentaSon contains forward-looking statements based on the beliefs of the company, as well as assumpSons made by, and informaSon currently available to our management team. When used in this presentaSon, words such as “anScipate,” “project,” “expect,” “plan,” “seek,” “goal,” “esSmate,” “forecast,” “intend,” “could,” “should,” “will,” “believe,” “may,” “scheduled,” “potenSal” and similar expressions and statements regarding our plans and objecSves for future operaSons, are intended to idenSfy forward-looking statements. Although management believes that the expectaSons reflected in such forward-looking statements are reasonable, it can give no assurance that such expectaSons will prove to be correct. You should not put undue reliance on any forward-looking statements, which speak only as of their dates. Forward-looking statements are subject to risks and uncertainSes that may cause actual results to differ materially from those expected, including insufficient cash from operaSons, adverse market condiSons, governmental regulaSons, the possibility that tax or other costs or difficulSes related thereto will be greater than expected, the impact of compeSSon and other risk factors discussed in our latest filings with the SecuriSes and Exchange Commission. All forward-looking statements adributable to Enterprise or any person acSng on our behalf are expressly qualified in their enSrety by the cauSonary statements contained herein, in such filings and in our future periodic reports filed with the SecuriSes and Exchange Commission. Except as required by law, we do not intend to update or revise our forward-looking statements, whether as a result of new informaSon, future events or otherwise. 17
