Ann: Appendix 3B, page-9

Shale in the Permian costs around US$40+ per barrel. Permian is the lowest cost shale production, the rest is much higher. BYE production costs are closer to US$5 per barrel. There is no comparison. Shale producers are mostly running on very high debt levels that will no longer be available to them unless the oil price goes much higher. Effectively shale production is falling off a cliff at the moment. It would appear that it is unlikely to recover in the short term so with that as a background along with the economy reopening the bounce in the oil price makes some sense.