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high priority agenda for OPEC Member Countries. It is also the main objective of the assistance they provide to other developing countries, directly through their own aid institutions, as well as through the OPEC Fund for International Development (OFID). In total, they have provided close to $350 billion (in 2007 prices) in development assistance to other developing countries in the period 1973–2010. This amounts to nearly $10 billion a year. 56 A significant portion of this amount, $69 billion, has been devoted to energy related projects, covering a diverse portfolio of energy sources that includes financial support to renewable energy sources. OFID particularly targets least developing countries and assists in the pursuit of sustainable social and economic advancement. Today, 129 countries from the developing world have benefited from OFID assistance. Human resources The human resource plays a strategically important role in the oil and gas business. The ability to innovate, explore, plan, and execute large-scale, complex development projects in a cost effective and environmentally-friendly manner requires a highly qualified and experienced work force. However, the future availability of qualified technical talent remains a major challenge facing the oil industry. The Great Recession has had a significant impact in terms of job losses and a lack of job creation in the industry. However, the origins of this talent shortfall lie back in the 1980s and 1990s. It was then that the oil and gas industry saw a wave of cost cutting and redundancies. The result of this was that many technical people who were then entering their mid-career left the industry for good. Moreover, it was as this time that many universities cut back drastically on the number of student places for energy disciplines because the industry was not deemed to need graduates in such numbers. In recent years, there has also been fierce competition for talent, particularly from the service and emerging knowledge economies. And in addition, there is a sizeable section of the industry’s workforce, particularly the large numbers that entered the industry in the 1970s, that are now approaching retirement. It is clear, however, that the industry will need more qualified people in the years ahead. It begs the question: how can the industry find, hire, train and keep talented people? It is evident from the history of the oil industry that there have been periods that could be characterized ‘boom’ and others that could be viewed as ‘bust’. In periods of growth, companies have traditionally boosted their capital expenditure and recruited more staff. And when the industry has struggled somewhat, the situation has normally been reversed. It is important, however, that the industry finds new approaches and 143 Chapter 4
144 identifies sustainable long-term solutions to manage workforce demographics, even during challenging times. The industry needs to be made more attractive; to make it accepted as an inclusive and forward looking workplace. It needs to be sure it is well presented as a prime long-term employment choice. This needs to begin before actual employment – with education. It is important for the industry to be significantly involved in developing and nurturing new graduates and its potential workforce at an early stage. The focus is on cultivating better relationships between prospective employees, universities and the industry. A related issue is that of local content. This is of particular relevance to many oil and gas producing developing countries. Local content has a crucial role to play; a role that can, and should, provide a strong platform for a country’s economic and social development. In this regard, it is useful to have a well-defined, coherent, effectively managed and well-administered local content framework that positively engages and mobilizes all the relevant stakeholders – local communities, local industries, service companies, national oil companies (NOCs), governments and international oil companies (IOCs) – and in a manner that enables economic growth and social progress. In the context of the EU-OPEC energy dialogue, a study and roundtable is planned to assess the underlying causes of the human resource problem, the resultant implications for the energy industry, and potential ways to move forward to correct the growing discrepancy between the need for, and the availability of skilled labour. Energy and water An oft neglected aspect of the energy industry is the impact that production activity can have upon water resources. Competition for this precious resource, not just in the energy sector, but also among other industries, such as agriculture, as well as from communities, is becoming increasingly visible. Processes can have effects upon the availability of water, as well as the potential contamination of supplies. It is important, therefore, to be aware of the crucial water-related challenges that lie ahead in the energy sector, in general, including the oil sector. For transportation fuels, it is worth noting that all alternatives to oil produced from conventional sources use substantially more water in their production processes, with the exception of natural gas. Figure 4.4 shows, for example, that biofuels
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Section One
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Chapter 1 World oil trends: overvie
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Box 1.1 Regulatory reform in the en
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commodities, the OTC market also in
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IHS CERA upstream capital cost MOVE
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in the strength of the dollar: in N
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to this, there is the dominance of
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Although these reduced growth targe
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Global and regional population leve
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average of 67% of the population in
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Table 1.3 Population by urban/rural
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Figure 1.8 Real GDP by region in 20
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Policies The Reference Case retains
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electric vehicles, which focuses on
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Box 1.5 Shale gas: recent developme
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40 years. While the early high perf
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Box 1.6 After Fukushima: unclear fo
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is Japan itself, which has been ask
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Figure 1.13 Fossil fuel use per cap
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Table 1.6 Medium-term Reference Cas
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Table 1.7 World oil demand outlook
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low, and well below levels seen in
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has also taken into account the pot
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stronger than previously expected s
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d 0 Conventional Figure 1.22 US & C
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Upstream investment Figure 1.25 mb/
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different picture. By 2035, Annex I
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78 0 Figure 2.2 The distribution of
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80 Table 2.1 Vehicle and passenger
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82 0 1970 1974 1978 1982 1986 1990
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n (millions) 7,000 84 0 China Brazi
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ion (millions) 7,000 6,000 5,000 4,
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88 Conventional powertrain technolo
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90 acquisition costs, and the lower
Page 71 and 72: 92 Figure 2.9 Increase in oil consu
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Page 75 and 76: 96 Table 2.10 Oil demand in rail an
Page 77 and 78: 98 Table 2.13 Oil demand growth in
Page 79 and 80: 100 Table 2.14 Oil demand in the pe
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Page 83 and 84: 104 Figure 2.15 Share of industry i
Page 85 and 86: 106 Figure 2.16 Figure 2.16 Oil use
Page 87 and 88: 108 Table 2.19 Oil demand growth in
Page 89 and 90: 110 from 63% to 10% in Southeast As
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Page 93 and 94: 114 In Canada, although the Outlook
Page 95 and 96: 116 Non-OPEC Latin America’s prod
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Page 101 and 102: 122 Table 3.4 Medium-term non-OPEC
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Page 105 and 106: 126 1.8 mb/d in 2010, to 2.7 mb/d i
Page 107 and 108: 128 Of utmost importance, in respec
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Page 111 and 112: 132 early support given to Brazil
Page 113 and 114: 134 the call on OPEC crude by 2035
Page 115 and 116: 136 us to cooperate to lay the foun
Page 117 and 118: 138 Figure 4.1 Table 4.6 Oil supply
Page 119 and 120: 140 COP-16, held in Cancun at the e
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Page 125 and 126: 146 Beyond the oil sector, there ar
Page 127 and 128: 148 other international research an
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Section One

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