Can We Close The Gap Between Renewable Technologies and Fossil Fuels? The very last plenary session will highlight the challenges related to the transition in the energy sector: the big challenge on how to bridge the gap will be the main focus. A wide range of perspectives will be represented and the challenges we are facing as well as the solutions to these will be put on the table.

1. Dr Pierce Riemer – Director General – World Petroleum CouncilDr Pierce Riemer – Director General – World Petroleum Council
ISES Trondheim 2013ISES Trondheim 2013

2. The World Petroleum Council firmly believes that theThe World Petroleum Council firmly believes that the
activities of the petroleum industry have certainactivities of the petroleum industry have certain
fundamental values:fundamental values:
 Respect for the individuals andRespect for the individuals and
communitiescommunities
 Reliance on the highest technologicalReliance on the highest technological
solutionssolutions
 Highest business ethical and governanceHighest business ethical and governance
standardsstandards
 Creation of value to all stakeholdersCreation of value to all stakeholders
ValuesValues

3. Many Challenges and IssuesMany Challenges and Issues
 Deep Water SafetyDeep Water Safety
 Exploring New frontiersExploring New frontiers
 Enhanced Oil RecoveryEnhanced Oil Recovery
 Unconventional Oil andUnconventional Oil and
GasGas
 Refinery OptimisationRefinery Optimisation
 Motor Fuel QualityMotor Fuel Quality
 Carbon Capture andCarbon Capture and
StorageStorage
 Reserves ReportingReserves Reporting
 BiofuelsBiofuels
 RenewablesRenewables
 GTL/LNGGTL/LNG
 Oil priceOil price
 Cyber crimeCyber crime
 Peak oilPeak oil
 IOCIOC’’s / NOCs / NOC’’ss
 Energy securityEnergy security
 Access to acreageAccess to acreage
 Social licenceSocial licence
 Climate changeClimate change
 WaterWater
 Youth and genderYouth and gender
 GeopoliticsGeopolitics
 CorruptionCorruption
 Human RightsHuman Rights

4. The Challenge:The Challenge:
Providing Energy Security in aProviding Energy Security in a
World with IncreasingWorld with Increasing
Challenges and UncertaintiesChallenges and Uncertainties
The ChallengeThe Challenge

5. Normal World ViewNormal World View

6. Population in the 1960s – 3 billionPopulation in the 1960s – 3 billion

7. Population in 2013 – 7 billionPopulation in 2013 – 7 billion

8. IndiaIndia
ChinaChina
Population by 2050 – 9 billionPopulation by 2050 – 9 billion

9. Population ModelsPopulation Models

10. Population ModelsPopulation Models

11. What’s your best guess?What’s your best guess?

12. Source: OPEC/IEA
Poll of pollsPoll of polls

13. Need large Investments in the next 20 yearsNeed large Investments in the next 20 years

14. 19991999 20082008
What the papers sayWhat the papers say

15. What the papers sayWhat the papers say

16. What’s the oil price?What’s the oil price?

17. OPEC
What’s the oil price?What’s the oil price?

18. OPEC
What’s the oil price?What’s the oil price?

19. OPEC
What’s the natural gas price?What’s the natural gas price?

20. At the PumpsAt the Pumps

21. OilOil
$100$100
Diet CokeDiet Coke
$170$170
JackJack
DanielsDaniels
$4700$4700
ChanelChanel
No 5No 5
$1.70million$1.70million
$1700$1700

22. The world is not running out of oil and gas…The world is not running out of oil and gas…
…it will run out of production capacity…it will run out of production capacity
without investmentwithout investment
….. The atmosphere will run out of….. The atmosphere will run out of
greenhouse gas capacity unless we dogreenhouse gas capacity unless we do
somethingsomething
……and whatever we do has to be socially……and whatever we do has to be socially
acceptableacceptable

23. How do we continue in a sustainable mannerHow do we continue in a sustainable manner

24. Carbon Dioxide (COCarbon Dioxide (CO22) Capture) Capture

25. Carbon Dioxide (COCarbon Dioxide (CO22) Storage) Storage

26. Carbon Dioxide (COCarbon Dioxide (CO22) Storage) Storage

27. Fifty Shades of Green (Biofuels)Fifty Shades of Green (Biofuels)

28. Biofuels 1896 - 1933Biofuels 1896 - 1933

29. Thomas Edison

30. Algae alternativesAlgae alternatives

31. Franz Fischer 1918Franz Fischer 1918

32. Qatar 2012Qatar 2012

33. Technological innovations -Technological innovations - EOREOR

34. UnconventionalsUnconventionals

35. Unconventional Oil and Gas FrackingUnconventional Oil and Gas Fracking

36. 2000 Forecast of global gas market in 20102000 Forecast of global gas market in 2010

37. 2012 – Global gas market2012 – Global gas market forecastforecast changeschanges

38. The Promise of Unconventional Oil ResourcesThe Promise of Unconventional Oil Resources

39. The Promise of Unconventional Oil ResourcesThe Promise of Unconventional Oil Resources

40. Unconventional OilUnconventional Oil

41. •
The Promise of Unconventional Oil ResourcesThe Promise of Unconventional Oil Resources

42. Unconventional OilUnconventional Oil

43. Transparency InternationalTransparency International

44. Best Practices for Social ResponsibilityBest Practices for Social Responsibility
 Social impact assessmentSocial impact assessment
 Industry has moved from aIndustry has moved from a ““reactivereactive
approach to an integrated risk systemapproach to an integrated risk system
 Community engagementCommunity engagement
 Respect for Human RightsRespect for Human Rights
 Transparency and anti-corruptionTransparency and anti-corruption
initiatives e.g. EITI, UNGC, TIinitiatives e.g. EITI, UNGC, TI
 Sustainability reportingSustainability reporting

45. How do you measure it?How do you measure it?

46. The demographic age gap is expanding at anThe demographic age gap is expanding at an
alarming rate because the ageing workforce willalarming rate because the ageing workforce will
be retiring within the next 5 – 10 years and notbe retiring within the next 5 – 10 years and not
enough young people are finding the industryenough young people are finding the industry
attractive enough to join.attractive enough to join.
Getting OlderGetting Older

47. Getting OlderGetting Older

48.  Mergers
 Outsourcing (core ?)
 Haemorrhaging of knowledge
 Growing skills gap will impede
industry’s ability to operate.
 US universities turn out a 1000
lawyers for every geologist
 A serious issue.
Not Helping OurselvesNot Helping Ourselves

49. Fuel the YouthFuel the Youth

50. WPC Legacy -WPC Legacy - and Not for Profitand Not for Profit

51.  World population will increaseWorld population will increase
 More people out of energy povertyMore people out of energy poverty
 Energy Use will increaseEnergy Use will increase
 We will needWe will need allall forms of energyforms of energy
 Fossil fuels play a major roleFossil fuels play a major role
 Use Clean TechnologyUse Clean Technology
 Major Growth Areas, India, ChinaMajor Growth Areas, India, China
 Need Massive investment now in science andNeed Massive investment now in science and
technologytechnology
 We need stabilityWe need stability
 We need young smart peopleWe need young smart people
ConclusionsConclusions

52. ConclusionsConclusions
The Stone age did not end due to a lack of stonesThe Stone age did not end due to a lack of stones
The fossil fuel age will not end due to a lack of fossilThe fossil fuel age will not end due to a lack of fossil
fuelsfuels
Unconventional Solutions for anUnconventional Solutions for an
Unconventional WorldUnconventional World

53. Thank youThank you
forfor
ListeningListening