WSSD Report FINAL! - OGP

CONTRIBUTING TO SUSTAINABLE DEVELOPMENT
to local consumers. This transfer of knowledge
also includes novel technologies to control or
reduce environmental impacts of activities and
products. We promote technology transfer
directly and through a variety of partnerships.
Capacity building encompasses the management
systems and skills required to operate
complex equipment and technology safely and
efficiently and to improve business performance
while protecting the environment and helping
communities to develop. For economic growth
to be sustainable—and benefit all—governments
need to combine policies that promote a
vibrant private sector, provide education and
health care for all and maintain a framework of
justice and security. Effective states and efficient
markets work best in tandem.
Both technology transfer and capacity building
depend on all these factors—and more. Also
needed are an appropriate enabling environment
and reliance on diverse partnerships
that embrace industry, local
communities, governments and
NGOs. IPIECA and UNEP have
jointly published a report entitled
The Oil Industry Experience:
Technology Cooperation and
Capacity Building—Contribution
to Agenda 21, which illustrates
some of our industry’s
successes—as well as lessons
learned from such partnerships.
All of this narrows down to a simple reality:
around the world, oil and gas companies are
striving to operate their locally registered companies
by employing and training local people at
every level and to encourage locally sustainable
businesses, all of which increase society’s capacity
to realize economic and other benefits from oil
and gas operations.
The challenges ahead
In the past 10 years, despite wars, natural disasters
and economic volatility, the oil and gas
industry has kept the world supplied with the
raw materials and products it needs. Given an
enabling environment—one that encourages
investment and risk taking—we are confident in
our continuing ability to meet the globe’s
energy needs for decades to come.
On what do we base this confidence? At the
most conservative estimate, the world’s ultimate
conventional oil recovery (including past production
of around 800 billion barrels) is around 1800
billion barrels. Estimates from the International
Energy Agency are more optimistic at around
2300 billion barrels of oil as a result of technological
progress. In terms of natural gas, resources
are even more extensive. Only some 20 per cent
of estimated world total natural gas supplies have
so far been found. Huge supplies remain in many
different parts of the globe.
Does that mean business as usual for the oil
and gas companies? Far from it.
In concentrating on securing future supplies
of oil and gas we have perhaps paid less attention
to other, equally important aspects of our business.
As a result, we are sometimes perceived as
arrogant, topdown, non-participative polluters,
more interested in providing cheap energy to
developed nations than fostering long-term
prosperity elsewhere. Because the scale of our
operations can dwarf entire national economies,
we have been criticized for failing to use that
clout as an instrument for positive change.
Clearly, the oil and gas industry has
unfinished business in our dealings with
governments, local communities, relevant NGOs
and multilateral agencies. As part of doing business
better in the 21st century, we will have to
Energy markets: primary energy mix
Global consumption, indexed to 1990
130
120
110
100
90
gas
oil
coal
Below: as energy
use continues to
increase, the oil
and gas industry
is confident in its
ability to meet
future energy
needs.
1990 1992 1994 1996 1998 2000
Source: BP Statistical Review
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