Opportunity Connected to Opportunity … Transportation, Energy and the Economy

PORTS-TO-PLAINS ALLIANCEENERGY SUMMITWASHINGTON, DC

OPPORTUNITY CONNECTED TO OPPORTUNITY … TRANSPORTATION, ENERGY AND THE ECONOMY

APRIL 20, 2012

JOE KIELYVICE PRESIDENT OF OPERATIONS

INTRODUCTION

MISSION STATEMENT

Ports-to-Plains is a grassroots alliance of communities and businesses whose mission is to advocate for a robust transportation infrastructure to promote economic security and prosperity throughout North America's energy and agricultural heartland.

INTRODUCTION

INTRODUCTION

Currently 165 member organizations

INTRODUCTION North America’s Energy Corridor

INTRODUCTION North America’s Energy Corridor

INTRODUCTION North America’s Energy Corridor

INTRODUCTION North America’s Energy Corridor

INTRODUCTION

INTRODUCTION

Co-Chairs:

Rep. Randy Neugebauer R-TXRep. Adrian Smith R-NESenator Ben Nelson D-NESenator John Cornyn R-TX

Members:Rep. Michael Conaway R-TXRep. Bob Filner D-CARep. Quico Canseco R-TXRep. Pete Olson R-TXRep. Cory Gardner R-COSen. Kay Bailey Hutchison R-TXRep. Jeff Fortenberry R-NESenator Kent Conrad D-NDSenator Mark Udall D-COSenator John Hoeven R-NDRep. Rick Berg R-ND

Ports-to-Plains CaucusSupporting:• Rural

Transportation• Rural Economic

Development• Ports-to-Plains

Corridor

OPPORTUNITY

Things continue to boom. Williston economy is robust. The unemployment rate continues to hover around 2%. At any given time, over 1,200 job openings are available in the Williston area.

OPPORTUNITY

Ten years ago Williston, North Dakota was a quiet agricultural town with a population around 12,000.

Today, because of oil prices and drilling advancements, Williston is home to America's biggest oil boom and its residents number over 30,000.

OPPORTUNITY

Williston is only the ninth-largest city in North Dakota, but its sales tax collections were number one, beating Fargo and Bismarck.

2,100 new housing units were built in Williston last year, up from 1,500 new units in 2010.

There are fifty oil rigs in McKenzie County, each estimated to create 120 direct and indirect jobs. That’s about 6,000 jobs in a county that in 2000 had an official population of 5,737 and in 2010 reported an official population of 6,360.

OPPORTUNITY

How oil capitals of North America rank

1. Houston: HQ for almost every major company2. Calgary: Center of Canadian oil and coal industries3. Oklahoma City: Devon, Chesapeake, SandRidge, Continental

Resources4. Tulsa: Energy diversity, Williams, ONEOK, manufacturing5. Dallas-Fort Worth: Barnett Shale, Exxon Mobil offices6. Denver: Cimarex, gateway to Piceance, Niobrara Shale7. Midland, Texas: Permian Basin hub8. New Orleans: Hub of Gulf Coast operations and shipping9. Williston, N.D.: Bakken Shale. Can you say "Boomtown!"10. Edmonton: Hub for Alberta oil and gas activity

OPPORTUNITY

Fastest Growing Areas in the Nation

OPPORTUNITY

County Unemployment Rates

OPPORTUNITY

New Business Creation

OPPORTUNITY

Job Creation

OPPORTUNITY

Population change 1990 -2000

OPPORTUNITY

Population Changes –2000 to 2010

OPPORTUNITYPopulation Changes –2010 to 2011

OPPORTUNITY

DMS ORIG Total KTons in 2010 Total KTons in 2040Colorado Total 9,678                            13,252                          37%Kansas Total 19,536                          26,683                          37%Montana Total 3,325                            7,480                            125%Nebraska Total 12,730                          24,312                          91%New Mexico Total 4,485                            9,090                            103%North Dakota Total 3,032                            10,718                          253%Oklahoma Total 29,233                          25,995                          ‐11%South Dakota Total 12,992                          21,653                          67%Texas Total 22,405                          46,870                          109%Wyoming Total 8,100                            10,169                          26%Grand Total 125,517                       196,222                       56%

Domestic Exports by Truck in KTONS

OPPORTUNITY

DMS ORIG Total Current M$ in 2010 Total M$ in 2040Colorado Total $13,237 $22,597 71%Kansas Total $20,521 $27,562 34%Montana Total $1,821 $3,211 76%Nebraska Total $13,081 $26,634 104%New Mexico Total $4,721 $12,355 162%North Dakota Total $2,670 $7,086 165%Oklahoma Total $26,068 $39,474 51%South Dakota Total $4,726 $20,267 329%Texas Total $36,269 $76,043 110%Wyoming Total $3,218 $4,129 28%Grand Total $126,331 $239,358 89%

Domestic Exports by Truck in $Millions

ECONOMICALLY

DMS ORIG DMS DEST Total KTons in 2010 Total KTons in 2040Colorado Montana 76                                  148                                96%Kansas Montana 39                                  51                                  31%Montana Montana 187                                717                                283%Nebraska Montana 22                                  51                                  135%New Mexico Montana 10                                  37                                  257%North Dakota Montana 7                                    26                                  295%Oklahoma Montana 110                                222                                102%South Dakota Montana 10                                  56                                  464%Texas Montana 610                                1,394                            128%Wyoming Montana 53                                  307                                476%

Montana Tota 1,124                            3,008                            168%

Canada Exports by Truck in KTONS thru Montana

ECONOMICALLY Canada Exports by Truck in $Millions thru Montana

DMS ORIG DMS DEST Total M$ in 2010 Total M$ in 2040Colorado Montana $149 $263 76%Kansas Montana $75 $157 110%Montana Montana $179 $454 153%Nebraska Montana $61 $154 154%New Mexico Montana $27 $94 249%North Dakota Montana $15 $30 109%Oklahoma Montana $376 $859 129%South Dakota Montana $11 $112 950%Texas Montana $1,941 $3,769 94%Wyoming Montana $67 $157 135%

Montana Tota $2,899 $6,049 109%

ECONOMICALLY

DMS ORIG DMS DEST Total KTons in 2010 Total KTons in 2040Colorado North Dakota 58                                  126                                117%Kansas North Dakota 96                                  158                                65%Montana North Dakota 54                                  148                                174%Nebraska North Dakota 118                                188                                60%New Mexico North Dakota 1                                    3                                    207%North Dakota North Dakota 681                                2,034                            199%Oklahoma North Dakota 81                                  231                                185%South Dakota North Dakota 82                                  143                                76%Texas North Dakota 381                                1,067                            180%Wyoming North Dakota 4                                    19                                  380%

North Dakota T 1,554                            4,117                            165%Grand Total 2,678                            7,124                            166%

Canada Exports by Truck in KTONS thru North Dakota & Total

ECONOMICALLY Canada Exports by Truck in $Millions thru North Dakota & Total

DMS ORIG DMS DEST Total M$ in 2010 Total M$ in 2040Colorado North Dakota $119 $255 114%Kansas North Dakota $223 $515 131%Montana North Dakota $43 $124 186%Nebraska North Dakota $320 $632 98%New Mexico North Dakota $3 $10 198%North Dakota North Dakota $761 $1,811 138%Oklahoma North Dakota $291 $925 218%South Dakota North Dakota $121 $290 140%Texas North Dakota $1,253 $3,118 149%Wyoming North Dakota $6 $17 178%

North Dakota T $3,140 $7,697 145%Grand Total $6,039 $13,746 128%

ECONOMICALLY

DMS ORIG DMS DEST Total KTons in 2010 Total KTons in 2040Colorado Texas 116                                367                                215%Kansas Texas 114                                240                                109%Montana Texas 3                                    14                                  292%Nebraska Texas 67                                  233                                250%New Mexico Texas 39                                  171                                338%North Dakota Texas 3                                    10                                  312%Oklahoma Texas 84                                  248                                195%South Dakota Texas 46                                  150                                228%Texas Texas 14,668                          38,307                          161%Wyoming Texas 0                                    4                                    898%

15,140                          39,743                          162%

Mexico Exports by Truck in KTONS thru Texas

ECONOMICALLY

DMS ORIG DMS DEST Total M$ in 2010 Total Current M$ in 2010 Total M$ in 2040Colorado Texas $391 $440 $1,757 349%Kansas Texas $313 $351 $696 122%Montana Texas $4 $5 $16 289%Nebraska Texas $262 $292 $859 228%New Mexico Texas $110 $119 $524 378%North Dakota Texas $13 $14 $31 133%Oklahoma Texas $243 $263 $686 183%South Dakota Texas $150 $171 $503 234%Texas Texas $48,947 $52,474 $117,979 141%Wyoming Texas $1 $1 $6 835%

$50,434 $54,129 $123,057 144%

Mexico Exports by Truck in $Millions thru Texas

Energy Jobs along the Ports-to-Plains Corridor

ECONOMICALLY

Oil & Oil & Oil &Gas Gas Gas

Jobs GDP $B % GDPMontana 34,210 3.3 8.90%North Dakota 27,914 2.8 9.60%South Dakota 19,942 1.5 4.60%Wyoming 71,063 8.4 29.40%Nebraska 49,784 5.1 6.80%Kansas 119,051 14.0 11.40%Colorado 190,408 24.1 9.30%New Mexico 88,814 8.3 12.20%Oklahoma 348,627 47.8 31.30%Texas 1,772,335 293.8 24.20%

2,722,148 409.1Source: American Petroleum Institute

ECONOMICALLYAlberta Oil Sands Impact 2011millions Total PercentColorado $30.4 1.60%Kansas $15.8 0.80%Montana $3.3 0.20%Nebraska $10.6 0.50%New Mexico $11.0 0.60%North Dakota $4.3 0.20%Oklahoma $24.5 1.60%South Dakota $4.9 0.30%Texas $200.0 10.30%Wyoming $2.6 0.10%

$307.4 16.20%

What do Canada's oil sands have to do with the United States?• Canada is the largest

supplier of oil to the U.S.• For every two jobs created in

Canada from the oil sands, a third job is created in the U.S.

• Oil sands development is projected to generate $521 billion in economic activity in the U.S. over the next 25 years.

ECONOMICALLY

Alberta Oil Sands Impact 2035millions Total PercentColorado $1,221.5 1.60%Kansas $805.9 1.90%Montana $1,663.6 3.90%Nebraska $134.0 0.30%New Mexico $130.4 0.30%North Dakota $49.0 0.10%Oklahoma $298.5 0.70%South Dakota $57.7 0.10%Texas $3,217.5 7.50%Wyoming $77.6 0.20%

$7,655.7 16.60%

% Increase Total 2490.47%% Increase Annual 103.77%Increase Total $m $7,963.1

http://www.oilsands.alberta.ca/USEconomicImpactOilCalculator.html

ECONOMICALLY

Alberta Oil Sands Jobs2015 2035

Colorado 1,300  13,300 Kansas 800      8,900    Montana 1,000  18,000 Nebraska 300      1,600    New Mexico 300      1,400    North Dakota 100      600       Oklahoma 700      3,300    South Dakota 200      700       Texas 5,100  33,700 Wyoming 100      800       

9,900  82,300 

http://www.ceri.ca/images/stories/CERI Study 124.pdf

MOVING ENERGY

Traffic Impacts

MOVING ENERGY

MOVING ENERGY

Permitting Pilot Program ‐‐ One of the key challenges facing transporters of the heavy equipment used in the energy industry is permitting oversized loads. They must frequently cross multiple jurisdictions, with varying regulations on size and weight, and requiring multiple permits.

We recommend a pilot program to provide uniform size and weight restrictions and streamlined permitting throughout the corridor to find a more efficient way to move these important products.

MOVING ENERGY

• Interstate Commerce

• High and Wide Corridors

MOVING ENERGY

THANK YOU … STAY IN TOUCH

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