Wood River Refinery Expansion

March 9, 2009 Clint Rybak Business Manager World Energy Demand Outlook

Million Tons of Oil Equivalent 18,000 16,000 Hydro & Other Renewables 14,000 Nuclear 12,000 10,000 Coal 8,000 6,000 Natural Gas 4,000 Oil 2,000 0 1980 2004 2010 2015 2030 In 2030: • Fossil fuels will still have over 80% market share • Oil retaining over 30% share • Natural gas is gaining share, reaching 24% in 2030 2

Source: International Energy Agency, “2006 World Energy Outlook” The Oil Supply Challenge 140 Global oil 120 demand 100

Million 80 Barrels 34 Per Day 60 78 105 40 Capacity Additions Needed Existing 20 Production 0 2005 2010 2015 2020 2025 2030

3 Source: Based on IEA World Energy Outlook 2006 World Oil & Gas Reserves: 1960s vs. 2005

Drift Toward Constrained IOC Access

1960’s 2005 Full IOC NOC Reserves Reserves Access (Equity Held by Access) Russian Companies NOC Reserves 12% 16% (No Equity Access) Full IOC Access 7% 1% 85% SOVIET 14% Reserves 65%

NOC Reserves (No Equity Access) IOC = International oil company NOC = National oil company

Source: PFC Energy, Oil & Gas Journal, BP Statistical Review 2006 4 NOTE: Excludes unconventional crude oil and bitumen reserves GLOBAL CRUDE OIL RESERVES BY COUNTRY

300 259 250 Includes 175 billion barrels of reserves Canada, with 175 billion barrels in 200 179 Oil Sands reserves, ranks 2nd only to Saudi Arabia in global oil reserves 150 126 115 99 92 billion barrels 100 77 60 50 39 35 22

0 Saudia Canada Iran Iraq Kwait Abu Dhabi Venezuela Russia Libya Nigeria United Arabia States

Source: Oil & Gas Journal Dec. 2004

5 TOP 10 WORLD CRUDE OIL PRODUCERS IN 2004

Saudia Arabia

Russia

USA

Iran

China

Mexico Oil sands growth Norway will move Canada from #9 to #5 in Venezuela the world by 2015 Canada 2004

UAE

0 2 4 6 8 10 Million Barrels per Day Source: EIA & CAPP

6 Increasing Cost of New Oil Supplies

Biofuels(3)

Unconventional Biofuels(2)

Arctic

EOR

CTL Other FSU Oil Conventional Shale(1) Increasing Increasing Cost Oil GTL OPEC Deep Oil (1) Middle East water Sands

0 20 40 60 80 100 120 MBDOE

Note (1): Includes mitigation costs to make unconventional sources CO2 neutral compared to conventional 7 Note (2,3): Based on energy equivalent breakeven versus crude including tax incentives (2), excluding tax incentives (3) Source: Booz Allen Hamilton Canadian Oil Sands

8 Oil Sands to Bitumen

Before dilution for pipeline transportation

9 • Uses massive shovels and trucks to scoop the sand from the surface Extraction Techniques:and load into trucks.Mining • Taken to crushers, where hot water is added before sent to extraction plant. • Bitumen is extracted from oil sand and water is pumped into settling ponds. • Typically associated with local upgrading to Synthetic Crude Oil. • Only 20% of oil sands can be mined. • The land is reclaimed after it is mined. 10 ConocoPhillips’ Syncrude Project in Canada

11 Mining Reclamation

12 Extraction Techniques: SAGD

SAGD = Steam Assisted Gravity Drainage 13 SAGD Footprint

SAGD development has a similar footprint to conventional oil and gas development with the exception of GHGs, which we’re working to address through technology. 14 PIPELINE SYSTEM

15 WOOD RIVER REFINERY TODAY • Built in 1917 • Tenth Largest Refinery in US

• 800+ Employees

• ~30% Heavy crude processing capability

• 306,000 BPD crude processing

• Main Products Include

• Gasoline

• Diesel Fuel

• Asphalt

• Fuel 16

WOOD RIVER’S FUTURE • CORE Expansion Will: • Create More Than 1,500 Construction Jobs Between 2008 and 2011 at Refinery • Increase the Refinery’s Employment 5% • Increase Canadian Crude Processing Capability to > 50% • Meet the Projected Future Demand for Transportation Fuels in the Midwest • 356 BPD Crude Processing • Products Include • Gasoline • Diesel Fuel • Jet Fuel • Asphalt 17 WOOD RIVER’S FUTURE

• Full Bitumen Expansion • Continue to Provide Significant Construction Jobs Through 2015 and Further Increase Refinery Employment • Increase Canadian Crude Processing Capability to 100% • Expanded Crude Processing • Products Include • Gasoline • Diesel Fuel • Jet Fuel • Asphalt

18 REFINERY CONFIGURATION – PRESENT

19 REFINERY CONFIGURATION – FUTURE

20 Questions?

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