Slide 2 of 25

Notes:

• Crudes produced in California vary in quality as shown by the different price levels of Kern and Line 63.

• Alaskan North Slope (ANS) crude is used in California, along with the California-produced crudes, so it is also shown on this graph.

• In spite of the different price levels, the crude oils follow similar up and down patterns, which reflect world crude oil markets.

• Since 1997, crude oil prices have declined significantly.