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 IOCIOCs / NOCs / NOCss 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. Whats your best guess?Whats 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. Whats the oil price?Whats the oil price? 17. OPEC Whats the oil price?Whats the oil price? 18. OPEC Whats the oil price?Whats the oil price? 19. OPEC Whats the natural gas price?Whats 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 gasThe world is not running out of oil and gas it will run out of production capacityit 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 sociallyand 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 industrys 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