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2010 ANNUAL REPORT UNITED STATES ENERGY ASSOCIATION

2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

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Page 1: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

2010ANNUAL REPORTUNITED STATES ENERGY ASSOCIATION

Page 2: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

Cover photo: Top: (c) AlstomBottom: (c) Nuclear Energy Institute

Page 3: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

From the Desk of our Chairman...............................................................2Board of Directors......................................................................................3Membership............................................................................................4-5Welcome to USEA......................................................................................6Events.........................................................................................................7Energy Efficiency Forum/Penn State Energy Day...................................8Briefings......................................................................................................9Energy Utility Partnership Program........................................................10South Asia Regional Initiative for Energy Partnerships........................11Balkans & Regional Energy Market Development Program...........12-13Collaboration in China.............................................................................14World Energy Council..............................................................................15United States Energy Award...................................................................16

(c) World Energy Council 2010(c) World Energy Council 2010

Page 4: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

FROM THE DESK OF OUR CHAIRMAN

April 7, 2011

To USEA Members & Friends:

Thank you for your continued support for the United States Energy Association.

I believe we are executing our mission very well. In 2010, we fulfilled our core mission of serving as our nation’s Member Committee of the World Energy Council. We contributed significantly to the success of the WEC Congress in September as well as the ongoing programs and studies. In November 2011, we will host a major WEC forum in Houston. Already, USEA members are actively participating in the cycle of studies and programs leading up to the 2013 WEC Congress in Korea.

Our cooperative programs with the U.S. Department of Energy, U.S. Agency for International Development, and the U.S. Trade and Development Agency serve both our members’ interests and our nation’s international objectives. In 2011 we expect to continue our development assistance activities in South Asia, the Black Sea Region, as well as in other areas.

Domestically, we held six major forums at the National Press Club, as we continue to serve as the energy industry’s platform to communicate with the Washington community on the critical issues affecting the entire energy sector. And our 35 membership briefings in 2010 provided further opportunity for our members to provide information on the subjects that the federal policy community is addressing.

We continue to have financial stability and are pleased to note that numerous organizations chose to become members in 2010. USEA looks forward to a challenging but positive year in 2011.

Thank you for your continued support.

Sincerely,

Jack E. Futcher President - Oil, Gas & Chemicals Bechtel Corporation

(c) David Bryan(c) World Energy Council 2010

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Page 5: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

Stephen A. GosselinVice PresidentCaterpillar, Inc.

Michael HowardPresident & CEOElectric Power Research Institute

John KrenickiVice Chairman, GEPresident & CEO, GE Energy

Thomas R. KuhnPresident & CEOEdison Electric Institute

Michael LeClairPresident & CEOBabcock Power Inc.

Kevin O. MeyersRet. Senior Vice PresidentConocoPhillips

Gregory E. AliffVice Chairman, U.S. Energy & Resources LeaderDeloitte LLP

David N. ParkerPresident & CEOAmerican Gas Association

Merribel S. AyresPresidentLighthouse Consulting Group, LLC

Hal QuinnPresident & CEONational Mining Association

Gerry CauleyPresident & CEONorth American Electric Reliability Corporation

Randall B. RoeVice ChairmanBurns & Roe

Carl EnglishVice ChairmanAmerican Electric Power

Lydia ThomasRet. President & CEONoblis

Marvin S. FertelPresident & CEONuclear Energy Institute

Barry K. WorthingtonExecutive DirectorU.S. Energy Association

Roger GalePresident & CEOGF Energy, LLC

Daniel YerginChairmanIHS Cambridge Energy Research Associates

Jack GerardPresident & CEOAmerican Petroleum Institute

Rhonda ZygockiVice President, Policy, Government and Public Affairs Chevron Corporation

BOARD OF DIRECTORS*

ChairmanJohn “Jack” E. Futcher

President - Oil, Gas & ChemicalsBechtel Corporation

SecretaryVicky A. Bailey, Principal

Anderson Stratton Enterprises, LLCBHMM Energy Services, LLC

CounselPatricia F. Godley

MemberVan Ness Feldman, P.C.

TreasurerSheila Slocum Hollis

PartnerDuane Morris, LLP

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*As of December 31, 2010

Page 6: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

MEMBERSAs a member-driven organization, USEA owes a debt of gratitude to its supporters. In 2010, we continued to add to our diverse membership base, amassing 151 companies, government agencies, think tanks and academic institutions representing all sectors of the energy industry. Many thanks go out to all our members for enabling our work and enriching the public energy discourse.

Advanced Engineering Associates International Conversion Gas Imports

AECOM International Development, Inc. Core International, Inc.AEGIS Insurance Services, Inc. CRA International Alexandria Energy Associates, Inc. DAIAlstom Power, Inc. Decker, Garman, Sullivan and Associates, LLP American Coal Council Deloitte & Touche, LLPAmerican Council of Engineering Companies Duane Morris LLPAmerican Electric Power Duke EnergyAmerican Gas Association EDF Inc.American Geological Institute Edison Electric InstituteAmerican Nuclear Insurers Electric Power Research InstituteAmerican Petroleum Institute Electric Power Supply AssociationAmerican Public Power Association Energetics IncorporatedAREVA Energy & Mineral Law FoundationAssociation of Energy Engineers Energy Alliance of Australia Ltd.Ausenco Energy Energy HoldingsBabcock Power Inc. Energy Markets Group, Inc.Baker Botts, LLP Energy Resources International, Inc. Battelle Pacific Northwest Laboratory Energy Systems & Technology

Bechtel Corporation Energy, Environment and SecurityBHMM Energy Services ESTA InternationalBlack & Veatch Corporation ExxonMobilBluewave Resources Florida State University Bonneville Power Administration Fluor CorporationBP America Gas Systems Engineering, Inc.Brookhaven National Laboratory Gas Technology InstituteBurns and Roe Enterprises, Inc. GDF SuezC5 Pension Administrators, Inc. GE EnergyCaterpillar, Inc./Solar Turbines Gee Strategies Group, LLCCenterPoint Energy, Inc. GF Energy LLCCH2M Hill Global Development Opportunities, LLCChemonics Global Energy StrategiesCheniere Energy, Inc. Gridwise AllianceChevron Corporation Henneman Engineering, Inc.CME Group Hunton and WilliamsCombined Cycle Journal IBM Global Business ServicesConoco Phillips ICF InternationalContour Global IHS Cambridge Energy Research Associates4

Page 7: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

(c) World Energy Council 2010(c) World Energy Council 2010 (c) Alstom Transport

International Resources Group SRA International Inc.Interstate National Gas Association of America Shell Oil CompanyJohnson Controls, Inc. Siemens Energy, Inc.

Jordan Capital Management SMIDirectJuniata College Solar Electric Power AssociationKEMA Consulting Solar Energy Industries AssociationKPMG, LLP Solomon AssociatesLarson Allen, LLC Somes International Lighthouse Energy Group Southern California Edison Company Midwest Reliability Organization Southern CompanyMinnesota Public Utilities Commission SPXMorgan Stanley Star EnergyMorgan, Lewis and Bockius, LLP Strategic Power Systems, Inc MR Technologies Summit Power Group, Ltd.National Energy Education Development Project SunStar StrategicNational Energy Foundation Tetra TechNational Mining Association The Abraham Group, LLCNational Rural Electric Cooperative Association Total Gas & Power North America Natural Gas Supply Association Transmet CorporationNiagara Conservation Triangle Consulting GroupNoblis Troutman Sanders LLPNorth American Electric Reliability Corporation U.S. Agency for International DevelopmentNorth Carolina Solar Center U.S. Department of EnergyNorthern California Power Agency U.S. Geological SurveyNuclear Energy Institute University of Florida- Public Utilities Research CenterOak Ridge National Laboratory University of Miami, Center for Hemispheric PolicyOil States Industries University of Minnesota Duluth Peabody Energy University of Oklahoma College of LawPearl Street, Inc. University of San Francisco School of LawPetco International LLC University of Southern California Energy InstitutePierce Atwood University of WyomingPlanning & Forecasting Consultants URS Energy & Construction Inc.Pratt & Whitney Power Systems Van Ness Feldman, PCPricewaterhouseCoopers, LLP Venable LLPPublic Utilities Commission of Ohio Vinson & Elkins LLPResearch Triangle Institute Westinghouse Electric CompanySacramento Municipal Utility District Wilson Sonsini Goodrich & RosatiScience Applications International Corp. 5

Page 8: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

(c) World Energy Council 2010

6

“The best way to predict the future is to invent it.”

~Tom Kuhn, President & CEO, Edison Electric Institute

At the end of the first decade in the 21st century, the American energy industry stands at the precipice of vast changes and widespread opportunity. Legislative and regulatory uncertainty could have broad ramifications for conventional energy generation and industrial development. Volatile financial markets may continue to hinder project financing and temper investments in all energy sectors. In spite of these challenges, the energy industry remains one of the most pioneering industries on earth, testing the limits of proven technologies and determining its own destiny through innovation. As a comprehensive, unbiased representative of America’s energy industry, USEA offers a neutral platform on which influential energy players discuss the industry’s current state and future prospects. Through our signature annual events, topical membership briefings, international development programs and World Energy Council affiliations, USEA has its finger on the pulse of domestic and global energy affairs. We thrive off our collaborative work with members of our domestic and international networks. From nuclear to natural gas, coal to conservation, hydro to hydrogen, pipelines to transmission lines, we are the one single place for everything energy.

Page 9: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

3RD ANNUAL ENERGY SUPPLY FORUMBack by popular demand, the 2010 Energy Supply Forum concentrated on three key areas for U.S. and global energy supplies: investment decisions affecting electric power generation and transportation fuels procurement; prospects for offshore energy and nuclear development; and the future of shale gas exploration. The discussions revealed a sense of optimism that worldwide energy demand is regaining the momentum that it lost during the financial crisis and recession. Many questions continue to surround the growth of certain domestic sectors, particularly the nuclear, coal and shale gas arenas. All the same, panelists expressed tremendous enthusiasm for the industry’s commitment to sustainability by reducing CO2 emissions, promoting end-user energy efficiency and tapping the potential of emerging markets. This year’s speakers included FERC Chairman John Wellinghoff, former U.S. Secretary of Energy Spencer Abraham and Shell Oil Company Executive Vice President Russ Ford.

6TH ANNUAL STATE OF THE ENERGY INDUSTRY FORUMFollowing a tumultuous year of financial volatility and domestic economic stagnation, the 6th Annual State of the Energy Industry Forum surveyed the industry’s happenings in 2009. Jeffrey Holzchuh, Vice Chairman of Morgan Stanley, opened the Forum with an analysis of the global economic recession’s impact on energy markets and predicted that the worst of the recession was behind us. Next came a rousing discussion amongst the leaders of the natural gas, wind and solar associations, whose sectors had experienced unprecedented growth in investment in 2009 despite the economy’s overall poor performance. The following panel examined the implications of a low-carbon energy policy for the United States, acknowledging the tension between the cost of reducing emissions through energy innovation and overall economic competitiveness. Appropriately, the Forum concluded with a presentation by by John Mahoney, Chief Operating Officer at Chevron Energy Solutions, on the critical role that energy efficiency must play in addressing America’s energy challenges.

EVENTS

(c) Oeil de Nuit (c) Alstom (c) Yann Poirier

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Page 10: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

Penn State energy Day

In recognition of the Pennsylvania State University’s tremendous contributions to energy technology R&D, USEA proudly hosted Penn State Energy Day in November 2010. This event covered all areas of Penn State’s energy and engineering programs, highlighting the extraordinary progress made by the university’s faculty, students and alumni in such sectors as unconventional natural gas, nuclear engineering, renewables, carbon capture & sequestration, smart grid technology and energy efficiency.

THE 2010ENERGY EFFICIENCY

FORUM

(c) Herman Farrer photography

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(c) Herman Farrer photography

The 21st Annual Energy Efficiency Forum celebrated another year of great energy savings and growing public awareness of the efficiency imperative. Featured above, Governor Jennifer Granholm of Michigan addressed the Forum on the revival of next-generation automobile manufacturing in her state, and Secretary of Commerce Gary Locke spoke on the National Institute of Standards & Technology’s role in developing smart grid standards.

(c) Herman Farrer photography

Page 11: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

TECHNOLOGY & POLICY

Technology and policy are two of the most vital arenas affecting the future of energy industry activity. In order to help keep our members informed of breaking news in both of these areas, USEA organizes briefings with government and private sector experts to discuss a wide range of topics. This year’s briefings included discussions of supportive policies for fuel cell technologies, practical applications for smart- and micro-grid technologies, and a presentation by the American Public Power Association on their study titled, “Implications of Greater Reliance on Natural Gas for Electric Generation.”

NUCLEAR

The resurgence in demand for new nuclear plants internationally has given new hope to America’s nuclear energy industry. On top of producing large volumes of clean electricity, new plants will create new jobs and stimulate economic development. In order to better understand the implications of further nuclear development in the United States, USEA, along with co-sponsors NEI and AREVA, launched the American Nuclear Energy Revival Briefing Series. Topics covered the A-Z of new plant construction, the nuclear fuel cycle, building the nuclear supply chain and the nuclear energy policy landscape.

US-POLAND ENERGY ROUNDTABLE

In collaboration with the Polish Embassy’s Trade & Investment Section and the U.S. Department of Commerce, USEA hosted the 2010 US-Poland Energy Roundtable. The event convened influential members of the American and Polish public and private sectors to discuss matters of mutual importance to both country’s energy sector. Participants delved into such topics as shale gas, nuclear power generation, carbon capture & storage, smart grid technologies, renewable energy, the US strategic petroleum reserve and project financing.

CARBON CAPTURE & STORAGE

Since 2008, USEA has hosted a series of public briefings on Carbon Capture & Storage (CCS) highlighting the latest CCS policy, technical, and regulatory developments in the United States and throughout the world. In 2010, USEA hosted the Government of Alberta, Peabody Energy, Siemens Corporation, the Southeastern Regional Carbon Sequestration Partnership, the University of Texas, the U.S. Department of Energy and the U.S. Carbon Sequestration Council to address pressing topics, such as monitoring sequestered CO2, costs associated with CCS and the latest international developments. The series will continue in 2011.

BRIEFINGSAs a part of our commitment to enhancing dialogue across all sectors in the energy industry, USEA sponsors a number of briefings designed to educate and inform attendees on relevant and significant industry trends and developments.

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“Implications of Greater Reliance on Natural Gas For Electric Generation”

USEA Policy BriefingSeptember 2, 20102:00 pm

Theresa Pugh, Director, Environmental Services, APPA

J.P. Blackford, Senior Environmental Services Engineer, APPA

Carbon Capture and Storage AREVA – Re-Building an

American Industry American Nuclear Energy Revival Briefing Series

June 10, 2010Washington, DC

Thomas M. Williamson, P.E.VP, New Plant Market StrategyAREVA Inc.

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Page 12: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

INDIA UTILITY PARTNERSHIP

ENERGY UTILITY PARTNERSHIP PROGRAM

American by name, international by nature. For 20 years, USEA and its members have led an effort to improve energy infrastructure and energy services in developing countries through our unique international energy partnerships and workshops. American energy companies have volunteered their time and expertise in over 90 partnerships with their overseas counterparts to transfer best utility and energy practices. From executive exchange visits on energy efficiency and distribution system operations to workshops on grid-connected renewables and transmission system protection strategies, this program continues its legacy as America’s most successful volunteer-based international energy assistance program ever.

JORDAN UTILITY PARTNERSHIP PROGRAM

Sharon Hsu, Energy Team Coordinator at USAID’s Bureau for Economic Growth and Trade, & Dr. Katherine “Kit” Batten, USAID Climate Change Coordinator, opened USEA/USAID’s Workshop on Low Carbon Power Sector Development. Participants in this program hailed from Georgia, India, Indonesia, Kazakhstan, Mexico, the Philippines & South Africa.

GLOBAL ENERGY WORKSHOPS

Transmission: USEA conducted two executive exchanges between Jordan’s National Electric Power Company (NEPCO) and Arizona Public Service (APS). Meetings focused on generation planning, renewable energy integration and human resources modernization.

Distribution: USEA conducted two executive exchanges between Jordan’s electric distribution companies JEPCO, IDECO & EDCO and the Sacramento Municipal Utility District (SMUD). Topics discussed included energy efficiency, operations & maintenance and regulation.

With support from the U.S. State Department & IRD, USEA organized training for Ministry of Electricity executives in project management at GE Energy in Schenectady, NY. The program focused on project management for new gas turbine power plants in Iraq.

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As part of the new USAID-funded Pakistan Utility Partnership Program, in cooperation with IRG, USEA arranged for Javed Iqbal, Pakistan Secretary of the Ministry of Water & Power, to meet with Gil Quiniones, Chief Operating Officer of the NY Power Authority.

Teams from American Electric Power (AEP) & Allegheny Energy provided turbine, boiler & management best practices to India’s largest electric utility, the National Thermal Power Corporation (NTPC), as part of a joint initiative between the U.S. Department of Energy’s National Energy Technology Laboratory and NTPC.

PAKISTAN UTILITY PARTNERSHIP

IRAQ POWER PLANT CONSTRUCTION MANAGEMENT TRAINING

Page 13: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

SOUTH ASIA REGIONAL INITIATIVE FOR ENERGY PARTNERSHIPS

SOUTH ASIA WOMEN IN ENERGYWith support from USAID, USEA assisted with the SARI/Energy South Asia Women in Energy (SAWIE) program. The Pakistan Engineering Council hosted an International Conference of Conservation, Energy Efficiency & Solar, October 25 – 29, 2010, along with the launch of a Pakistan Women in Energy Center based in Islamabad, Pakistan.

Above: SAWIE delegates examine various technologies used for ground water extraction: (left) a 1500 watt PV module coupled with an AC submersible pump, and (right) a 16hp diesel dual fuel engine.

Cross-Border Energy Trade: SARI/Energy executives meet with Lawrence Musaba, manager of Zimbabwe’s Southern African Power Pool (SAPP)Coordination Center, at the SAPP Annual Meeting in Botswana.

USEA is an implementing partner in the USAID South Asia Regional Initiative for Energy (SARI/Energy) program. The SARI/Energy program promotes energy security in South Asia through three focus areas: 1.) cross border energy trade, 2.) energy market formation, and 3.) regional clean energy development. USEA conducts partnerships focusing on “best practices” in electricity regulation, distribution, transmission, renewable energy and energy efficiency.

Left: Inspired by the initiatives of the Women in Energy Center, Pakistan Honorable Senate Chairman Farooq Hamid Naek vowed to lead a national effort to start an energy efficiency and conservation overhaul of the Senate offices and chambers.

Smart Grid: SARI/Energy executives attending the Smart Grids Asia Conference in Ho Chi Minh City, Vietnam visit the National Power Transmission Corporation’s Control Center where they learned about smart grid technologies and applications for transmission systems.

Waste-to-Energy: SARI/Energy executives tour a pilot methane waste-to-energy site in the Philippines. This facility is the first registered Clean Development Mechanism (CDM) project under the Kyoto Protocol in solid waste management in Southeast Asia.

Renewable Energy (below right): SARI/Energy executives visiting Sacramento Municipal Utility District’s Solano Wind Farm Project in Rio Vista, California.

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Srinivasan “Padu” Padmanaban is Regional Director of USAID’s SARI/Energy program and senior energy advisor at USAID/India.

Page 14: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

Border Capacities - 2015

Interconnection Lines in Southeast Europe

USAID and USEA’s Southeast Europe Cooperation Initiative (SECI) Transmission Planning Project supports a regional approach to network planning within the Energy Community Southeast Europe members. Developers in the region have proposed adding several thousand megawatts of wind power, presenting new challenges to the secure and reliable operation of the regional network. In 2010 SECI commenced a study to calculate the capacity of the network to support wind power generation and prioritize the investments necessary to do so.

USAID and USEA’s Black Sea Regional Transmission Planning Project (BSTP) supports development of regional electric power transmission planning capacity among national transmission system operators (TSOs) in Armenia, Bulgaria, Georgia, Moldova, Romania, Russia, Turkey and Ukraine. In 2010, the project began analysing the benefits of integrating wind, hydro and other renewable energy capacity in the 2015 and 2020 regional network models.

TRANSMISSION PLANNING & RENEWABLE ENERGY INTEGRATION

BALKANS & REGIONAL ENERGY MARKET DEVELOPMENT PROGRAM

© Chevron

The Black Sea Regional Transmission Planning Project Working Group travelled to Little Rock, Arkansas to study how the Southwest Power Pool plans for renewable energy integration in its high voltage networks. Using information from the exchange visit, the working group is optimizing the regional network models based on cost, transmission losses and the potential to integrate renewables.

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Page 15: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

RUSSIAN-AMERICAN SMART GRID PARTNERSHIP

KOSOVO ELECTRIC COMPANY PARTNERSHIP

USEA is USAID’s implementing partner for the Russian/American Smart Grid Partnership Initiative, a program of the Obama-Medvedev Bilateral Presidential Commission established in 2010 to “reset” relations between the United States and the Russian Federation. Here, Russian power specialists receive a briefing at CenterPoint Energy’s intelligent network substation.

USEA is one of a limited number of contractors selected by U.S. Trade and Development Agency to organize reverse trade missions, conferences, workshops and training courses. These programs are designed to familiarize developing country energy professionals with U.S. technology and investors in support of the President’s National Export Initative.

Representatives of the Kosovo Electric Corporation examine a coal handling facility at a Texas power plant. Kosovo plans to construct new fluidized bed combustion technology using domestic coal to enhance its energy security.

TRADE & DEVELOPMENT AGENCY

KEK plans to privatize its electric distribution network to attract investment and improve distribution efficiency. USEA conducted an exchange visit to Southern California Edison to profile the operations of a regulated, investor-owned utility for KEK senior managers.

USEA coordinated a technical site visit for representatives with procurement authority from Egypt, Lebanon and Morocco to Edom Hills Wind Farm in Palm Spring, CA as part of a two week renewable energy reverse trade mission.

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Page 16: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

USEA assisted the U.S. Department of Energy in organizing the 10th U.S.-China Oil & Gas Industry Forum, held in Fort Worth, Texas from September 14 - 16, 2010. USEA members Chevron, ConocoPhillips, ExxonMobil and GE provided key support to this annual event, which fosters cooperation and increased business opportunities between the U.S. and Chinese oil and gas sectors.

OIL & GAS INDUSTRY FORUM

U.S.-CHINA FOSSIL ENERGY PROTOCOL

NATURAL GAS TRAINING PROGRAM

The U.S.-China Fossil Energy Protocol promotes scientific and technological cooperation between the U.S. and China in the field of fossil energy, particularly activities related to research, development, demonstration and deployment. The Protocol also creates opportunities for U.S. industry and power developers in China. In 2010, USEA supported the U.S. Department of Energy for the 10th Anniversary of the Protocol in San Francisco, CA.

COLLABORATION IN CHINA

With U.S. Trade & Devlopment Agency funding, USEA and the US energy industry conducted 12 courses for 1,043 Chinese natural gas professionals in gas planning, exploration, development, distribution and pricing. The Natural Gas Training Program encouraged greater commercial cooperation & bilateral collaboration between the U.S. and China.

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Page 17: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

USEA is the U.S. Member Committee of the World Energy Council, the world’s foremost multi-energy organization. With members representing 94

countries and over 3,000 organizations, including most major energy consumers and producers, WEC is the preeminent forum for international discussion and dialogue on global energy affairs. Their mission is, “to promote the sustainable supply and use of energy for the greatest benefit of all people.”

In September 2010, WEC held its signature triennial event, the 21st World Energy Congress, in historic Montreal, Canada. Attended by over 6,000 delegates from 137 countries, including 70 ministers and numerous corporate energy executives, the WEC Congress once again demonstrated itself as the preeminent global energy industry conference.

Amongst the Congress’ multitude of relevant and inciteful panel discussions, Barbara N. McKee, Chairman of the WEC Cleaner Fossil Fuels Systems Committee, hosted a standing room only briefing titled, “Carbon Capture & Storage After Copenhagen: An Imperative, Not an Option.” Experts from the U.S. Department of Energy, Shell, Columbia University and OPEC focused on the future of CCS and its potential to significantly reduce global CO2 emissions by 2050 in a cost-effective and efficient manner.

USEA’s WEC involvement extended far beyond the Montreal Congress. As Secretariat to the World Energy Council’s Cleaner Fossil Fuels Systems (CFFS) Committee, USEA assembled an impressive international roster of experts for the Forum on CCS & CFFS in the Middle East & Northern Africa. The event was held in Abu Dhabi and centered on carbon capture and storage progress and prospects in the Middle East and North Africa.

WORLD ENERGY COUNCIL

Barbara N. McKee, Chairman of the World Energy Council Cleaner Fossil Fuels Systems Committee.

Several USEA members participated in the Abu Dhabi Forum, including BP, Alstom, Shell, GE and the U.S. Department of Energy.

Dr. Hisham Khatib, Honorary Vice Chairman of the WEC, Former Minister of Energy, Former Minister of Water and Former Chairman of the Electricity Regulatory Commission of Jordan, led a panel discussion titled, “CO2 Management in the MENA Region.”

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Page 18: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

HONORING INDUSTRY LEADERS

The United States Energy Awardprominence in the oil and natural gas sectors due to the visibility of an industry leader such as Peter Robertson.

In April of 2010, Robertson became an independent senior advisor to the Deloitte Center for Energy Solutions. He also is a director of Jacobs Engineering, Universal Pegasus International, Resources for the Future; serves as Co-Chairman of the U.S.-Saudi Arabian Business Council, Chairman of the World Affairs Council of Northern California and is Vice-Chairman of the International House at the University of California, Berkley.

Peter J. Robertson personifies the international energy leader that the United States Energy Award is intended to recognize. The United States Energy Association is pleased to honor Peter J. Robertson as the 2010 recipient of the United States Energy Award, presented June 7, 2010 in Washington, D.C.

Peter J. Robertson is the 2010 recipient of the United States Energy Award, having previously served as USEA Chairman, Vice Chairman and as a member of the USEA Board of Directors. Robertson retired on April 30, 2009 from Chevron Corporation in the position of Vice Chairman of the Board of Directors. He began his career with Chevron in 1973 and served in a number of leadership positions including:

• Vice President, Finance, Chevron USA• President, Warren Petroleum• Vice President, Strategic Planning• President, Chevron USA• President, Chevron Overseas Petroleum, Inc.

His involvement with USEA came at a time when the Association’s visibility and reputation were growing significantly, in large part due to the participation and involvement of Chevron as a corporate member and Peter Robertson personally. USEA gained

Previous Honorees:2009: Bob Catell, Chairman - National Grid, U.S.2008: Don Hodel, Former Secretary of Energy & Interior and Chairman - Summit Group2007: Spencer Abraham, Former Secretary of Energy, Chairman & CEO - The Abraham Group, LLC2006: Lee Raymond, Ret. Chairman & CEO - ExxonMobil Corporation

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Page 19: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy
Page 20: 2010 ANNUAL REPORT - United States Energy …FROM THE DESK OF OUR CHAIRMAN April 7, 2011 To USEA Members & Friends: Thank you for your continued support for the United States Energy

1300 Pennsylvania Avenue, NWSuite 550, Mailbox 142Washington, DC 20004

www.usea.org

© USEA 2011