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Investment Goldman Management oH Spare Oil Production Capacity Looks Adequate Dikisten 4. US Crude Oil Production 2. Spare Capacity from April 2019 Production Level to 2018 Highest Production Levels 140 5 2.5 5 YN US crude production (LHS) ; 13 1.3 = US crude production (RHS) 2.0 + - 12 1.20 | 15 | - 14 400 4 1.3 : 1.0 + 10 z z 2 0.80 | fe} fe} c < | c ° & 05 99 = = ™ = = 060 | (Sep 2016) 8 0.40 | (0.5) | 7 0.2 0.20 | (1.0) + / 6 0.1 0.1 (1.5) J Lo5 0.00 T j 1 j T Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Sep-17 Apr-18 Nov-18 lrag 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. 1A HOUSE_OVERSIGHT_026958