Investor Presentaiton

LPRO: LEGISLATIVE POLICY AND RESEARCH OFFICE PETROLEUM BACKGROUND BRIEF Oregon imports 100 percent of its petroleum, more than 90 percent from refineries in Washington's Puget Sound region. 5 Oregon, along with Alaska, Arizona, California, Hawaii, Nevada, and Washington, form a nearly self-contained system of petroleum production and consumption. Approximately 80 percent of the crude oil the Puget Sound refineries use originates in Alaska's North Slope oil fields. This percentage is changing as Puget Sound refineries increasingly source crude oil from the Western Canada Sedimentary Basin (tar sands and wells), and the oil fields in Alaska decline. Less than five percent of Puget Sound refineries' crude oil comes from the continental United States, Mexico, Indonesia or the Middle East. However, these percentages are changing as refineries in Washington now receive crude oil by rail from the Bakken field in Montana/North Dakota.6 Ninety-three percent of Oregon's transportation fuel comes from petroleum-based products. NATURAL GAS ALASKA NORTH SLOPE OIL FIELD VALDEZ REFINERIES TRANS ALASKA. PIPELINES WESTERN CANADA SEDIMENTARY BASIN TRANS MOUNTAIN PIPELINE OLYMPIC PIPELINE PORTLAND CHEVRON PIPELINE SALT LAKE CITY REFINERIES An increase in Oregon's renewable energy has had an effect on other resources in the electricity mix. The percentage of natural gas-powered electricity in Oregon has increased from 12.1 percent in 2012 to 18.4 percent in 2016.7 There has also been a 60 percent Oregon Natural Gas Transmission Pipelines and Utility Territories NW Natural Cascade Natural Gas Avista MAUPIN JOHN DAY LAQRANDE increase in natural gas used for electricity between 2012 and 2016. Northwest Natural, Cascade Natural Gas, and Avista are the state's investor-owned natural gas distribution utilities. Transmission Pipelines COOS BAY BOSEBURG References: 1, 15, 17, 20 GOLD BEACH MEDFORD KLAMATH FALLB Biennial Energy Report Chapter 1- Page 16 Map 1: Oregon's Natural Gas Transmission Lines and Service Territories. 5 EIA Oregon Profile Analysis. Available online: http://www.eia.gov/state/analysis.cfm?sid=OR 6 EIA Washington Profile Analysis. Available online: https://www.eia.gov/state/analysis.cfm?sid=WA 7 Oregon Department of Energy 2018 Biennial Energy Report https://www.oregon.gov/energy/Data-and- Reports/Documents/2018-Biennial-Energy-Report.PDF August 8, 2019 Page | 3

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