World Oil Outlook - Opec

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While access to electricity for lighting has been identified as a priority, sustaining
access to this and providing other similar services in the long-term are matters
that underscore the need to empower the poor to be able to earn an adequate and
sustainable level of income so that they may pay for such services in the long-term.
Thus, successful eradication of energy poverty in the long-term must rely on creating
employment and income generating opportunities for the poor. In this context, an
important area for international cooperation is assisting the poor in the transformation
of their subsistence agriculture into income-generating agriculture. This requires
that attention be given to two areas: shifting toward more productive mechanized
agriculture and facilitating access to international markets for agricultural products by
removing agricultural subsidies in developed countries.
It is important to note that modern mechanized agriculture uses far more energy
than traditional agriculture but produces a much higher yield. In the US, for example,
modern rice production uses 64,885 megajoule (MJ) of energy but yields 5,800 kilograms
of rice per hectare, whereas traditional rice farming in the Philippines uses only
170 MJ of energy per hectare but yields only 1,250 kilograms of rice per hectare. This
is more than a 381-fold difference in energy use and a 4.64-fold difference in yield.
Such transformation leads to higher income for the poor and provides them with the
opportunity to escape the poverty trap.
However, while access to international agriculture markets is essential to sustain
the livelihood of poor farmers in developing countries, the significant agricultural
subsidies in developed countries hinder such market access. In 2010, for example,
OECD countries provided over $227 billion in subsidies to their agricultural sector.
In this context, the eventual conclusion of the Doha Round of trade negotiations,
which may include the removal of such agricultural subsidies in developed countries,
could be one important step in supporting multilateral efforts to provide income generating
opportunities for the poor and enable them to benefit from expanded energy
services – not only to fulfill their basic needs but also for use in value added production
processes and job creation.
Dialogue & cooperation
In an increasingly globalized and interdependent world that is bringing us all closer
together, the importance of dialogue and cooperation grows. It is crucial for all the
industry’s various stakeholders.
Closer stakeholder engagement at various levels is critical for better understanding
each other’s viewpoints, developing common understandings, building
confidence and finding the right balance in handling the uncertainties and