Exhibit 96: OPEC 2016 Production Cut Agreement Exhibit 97: US Energy Sector Ratio of Capital and Recent Changes Spending (Capex) to Depreciation If fully implemented, OPEC’s proposed cut would reverse Low capex levels suggest there is upside to investment. production growth from the prior 6 months. Million Barrels/Day Ratio 14 m Production Change in 6 Months Leading up to 3.5 ——— Capex-to-Depreciation Ratio the November 2016 OPEC Meeting 12 - — = = Long-Term Average 12 m November 2016 Agreed Cut 30 1.0 0.8 z5 0.6 05 x0 04 gees = eee (Oe eee See ere ee! er ore ae rT vk. 0.1 "s o— l = i -— a 10 1.04 02 Oo 0.89 0.4 0.5 = <= & Ne Zz 2 0.0 $ 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Data as of November 30, 2016. Data through September 30, 2016. Source: Investment Strategy Group, Bloomberg, OPEC. Source: Investment Strategy Group, Empirical Research Partners. suggest the transition toward a balanced market is | own output along with OPEC have been broken underway. The same could be said for the dramatic in the past. cuts in US drilling budgets, which have precipitated Moreover, while the announced cuts are notable declines in US shale output (see Exhibit significant—the OPEC agreement would reduce 94). Lower oil prices have also supported above- production by up to 1.2 mmbd, equivalent to average global demand growth, helping to absorb about one year of average global demand growth— excess inventories. Lastly, OPEC agreed to they are largely a reversal of production growth lower production in November 2016, while also seen over the last six months (see Exhibit 96). securing a promise from its significant non-OPEC Meanwhile, Libya and Nigeria were excluded from counterparts to do the same. Taken together, these — these new OPEC quotas given sizable domestic developments support our forecast for moderately disruptions that have depressed their production. higher oil prices in 2017. Recent signs of improvement, however, suggest a This balancing act is