Investment Goldman . . . Management mle Spare Oil Production Capacity Looks Adequate Dikisten 2.5 YNY US crude production (LHS) 13 180 — US crude production (RHS) 13 2.0 12 1.20 1 " 1.00 13 1.0 10 2 2B 3 0.80 5 0.5 96 § = ty! = = 060 - Sep 2016 5 040 (0.5) 7 0.2 0.20 (1.0) 6 0.1 0.1 (1.5) 5 0.00 | , Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Sep-17 Apr-18 Nov-18 Iraq Kuwait Saudi UAE = US oil production growth has matched or exceeded global demand growth over the past year, providing ample supplies to the market. = In fact, OPEC had to cut production in late 2018 in order to reduce oversupply and arrest a fast decline in oil prices. =" OPEC production could be increased back to 2018 highs if the market faced a shortage. Doing so would add 1.7 million b/d from main Middle Eastern OPEC members — more than Iran’s current export levels of around 0.5 million b/d. Source: Investment Strategy Group, EIA, Bloomberg, OPEC. A HOUSE_OVERSIGHT_026958