ConocoPhillips CEO: Tax Proposal Would Cost Jobs, Raise Consumer Energy Costs

ConocoPhillips′ (NYSE:COP) Chairman and CEO Jim Mulva will appear May 12
at a Senate Finance Committee hearing in Washington, D.C., where he will
outline the negative effects of proposed tax policy targeting major
energy companies.

Mulva expects to describe to committee members how misinformation about
the industry′s tax liabilities is being used to justify proposed tax
increases.

'Our industry already has the highest effective tax rate in the United
States,? said Mulva. 'Increasing these taxes would cost jobs and raise
gasoline and other consumer prices, while actually unintentionally
reducing the government′s tax revenue by discouraging investment by the
industry′s largest and most financially capable companies.?

Mulva added that the proposal would impede the industry′s ability to
reinvest not only in the oil and natural gas needed to power the economy
today, but also in new energy technologies and resources that will be
essential in the future.

'Our industry and company are already taxed heavily compared to other
industries in the United States,? Mulva said. 'For example,
ConocoPhillips′ effective global income tax rate from 2006 through 2010
was 46 percent. If you look at non-financial companies in the Fortune
500, the 20 largest by market value had an effective tax rate of 27
percent.?

That tax rate already limits the company′s ability to invest in finding
and recovering energy reserves. In 2010, the company′s payout was equal
to its income: After paying $8.3 billion in income taxes -- as well as
$3.1 billion in other non-income taxes -- ConocoPhillips earned $11.4
billion in income.

Proposals to repeal the Section 199 domestic manufacturing deduction for
the five largest oil companies would discriminatorily deny them a tax
deduction available to every other manufacturing industry, as well as to
large oil companies outside the top five. This tax deduction was enacted
by Congress in 2004 to stimulate job growth in the production and
manufacturing sector, which in turn, encouraged more domestic energy
production.

'The oil and natural gas industry supports 9.1 million jobs in the
United States, a fact that is too often overlooked,? said Mulva. 'Also,
taxes are included in gasoline prices. At a time when everyone is
concerned over the cost of gasoline, Congress shouldn′t do anything that
could actually worsen the situation.?

ConocoPhillips is an integrated energy company with interests around the
world. Headquartered in Houston, the company had approximately 29,600
employees, $160 billion of assets, and $226 billion of annualized
revenues as of March 31, 2011. For more information, go to www.conocophillips.com.

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OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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variety of risks and other matters including, but not limited to, crude
oil and natural gas prices; refining and marketing margins; potential
failure to achieve, and potential delays in achieving expected reserves
or production levels from existing and future oil and gas development
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difficulties in constructing or modifying company manufacturing or
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and international economic and political conditions, as well as changes
in tax and other laws applicable to our business. Other factors that
could cause actual results to differ materially from those described in
the forward-looking statements include other economic, business,
competitive and/or regulatory factors affecting our business generally
as set forth in our filings with the Securities and Exchange Commission
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to update publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.

ConocoPhillips' effective tax rate of 46 percent reflects an adjustment
to income before taxes in 2008 for impairments of $32.9 billion. The
company's effective tax rate including these items was 66 percent for
the five-year period.

ConocoPhillips

Nancy Turner, 281-293-1430 (media)

nancy.e.turner@conocophillips.com

or

Clayton
Reasor, 212-207-1996 (investors)

c.c.reasor@conocophillips.com