By 2050 energy demands will double. There will be 3 billion energy consumers added to our global population. At the same time we must manage greenhouse gas emissions successfully.
Historically it has taken new energy sources 25 yrs to obtain 1% of the market. Biofuels are reaching 1% of market and could do so by middle of next decade.
Deploying new technology on a massive scale is not easy.
Fossil fuels will still provide 70% energy in 2050
Shell has 3 responses to our current situation:
1 – We will expand the world’s oil and gas resources, including deep sea and arctic.
2 – We will reduce CO2 emissions. We have now a process for injecting CO2 in wells to help us extract oil and gas. Today the primary constraints for doing this are public support and cost. According to the Intergovernmental Panel on Climate Change, this alone will deliver half of what needed.
3 – We must develop alternative fuel – Shell will concentrate on biofuel.
The US produces 7% world’s oil, and consumes 20% world’s energy.
The US has a powerful contribution to make on world stage. Many nations are paying close attention to what happens in Congress. The US has a legacy of leadership: catalytic converters and Cap and Trade were invented in US.
Working together US & China would have powerful impact on climate change.
When Voser left the stage he had delivered a clear, consistent vision for Royal Dutch Shell. His message was concise, pointed, on message.
Stay tuned today as I continue to cover the World Business Forum live from Radio City Music Hall.
Kahan is a Change Leadership specialist. He has consulted with CEOs and
executives in over 50 world-class organizations that include Shell,
World Bank, Peace Corps, Marriott, Prudential, American Society of
Association Executives, International Bridge Tunnel and Turnpike
Association, Project Management Institute, and NASA. He is the founder
of Seth Kahan’s CEO Leaders Forum, a community of CEOs working together
to innovate through the current economy. His next book, Getting Change Right: Guaranteeing Buy-In from Your Most Valuable Players, will be published in spring 2010 by Jossey-Bass. Visit his other blog, GettingChangeRight.com for more info on the book.