Day 1 at the World Energy Congress

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World Energy Congress 2010 Day One: traditional energy sources will remain key as alternatives developed

The energy industry must work toward diversifying away from traditional sources such as fossil fuels into alternative sources such as wind, solar and nuclear power, delegates to the World Energy Congress Montréal 2010 were told today. However, the transition will take time and in the meantime, additional supplies must be found to meet increasing demand for energy as emerging markets further industrialize and the world’s population grows.

Keynote speaker Khalid Al-Falih, president and chief executive officer of Saudi Aramco, the Saudi Arabian state-owned oil company, said coal, oil and natural gas will likely account for about four out of every five units of energy consumed during the coming decades. In the meantime, he said technology will be developed that will make petroleum more environmentally friendly and efficient.

Amid concerns following the recent oil spill in the Gulf of Mexico, Mr. Al-Falih said the industry’s safety record “is better than the images of the last several months would lead the public to believe. Today the industry is more capable, the technological tools at its disposal are more sophisticated, and the petroleum supply chain is more robust than at any point in its history.”

Another keynote, Peter Voser, chief executive officer of Royal Dutch Shell, said natural gas represents a “revolution in energy security,” particularly in the electricity-generating area. He called this fuel the fastest, lowest cost and easiest way to reduce carbon emissions in the coming years,” Mr. Voser told the Congress.

Afternoon plenary session speakers addressed the impact of oil subsidies on energy supply. Sead Vilogorac, senior executive, United Nations Economic Commission for Europe, said crude oil price subsidies in some countries are distorting the balance between energy supply and pricing. Subsidies are also responsible for large amounts of CO2 emissions, he said.

Energy producers need solid capital markets and a coherent regulatory investment framework that are not always in place, Vilogorac, adding that he hoped business and government can reach a consensus on how to move forward in this area.

In another plenary presentation, Oleg Aksyutin, Head, Gas Transportation, Underground Storage and Utilization Department, Gazprom, Russian Federation, said a nation’s energy security is an important component of its overall security, and this is a key component of his country’s energy policy. He said the Russian system of gas development is done in a “planned fashion offering a proper solution for the safety and security of natural gas.”

In a morning round-table session, panelists discussed the day’s theme, “Accessibility – Meeting Energy Demand: A Global Challenge Requires Global Solutions.” Chaired by Jamal Saghir, Director, Energy, Transport and Water at The World Bank, the session addressed such issues as how demand for energy will grow as economies continue to recover from the financial crisis, and the accompanying need to make energy use more efficient and to move toward integration of alternative energy sources into the mainstream energy supply.

The World Energy Council released a study on sustainability of energy supplies, and the need for this urgent area to be integrated into energy policymaking. Global population growth and the importance of limiting global warming mean energy policymaking has to accommodate multiple agendas – economic development, national security, social welfare and environmental protection, the study report said. Among the studies’ conclusions:
* A wide range of factors contribute to the energy sustainability performance of countries.
* Many countries are pursuing energy sustainability through ambitious and versatile programmes.
* The scale and complexity of the energy sustainability challenge is increasing.

Daily themes for the remaining there days of WEC Montreal 2010 are Availability – What is The Right Energy Mix for Long Term Stability; Acceptability – Energy Solution for a Living Planet®; and Accountability – Policies, Regulation and Financing.

World Energy Council
The 21st World Energy Congress is organized by the World Energy Council (WEC). Headquartered in London, the WEC is a United Nations (UN) accredited nongovernmental organization that was founded in 1923. It brings together all stakeholders in the energy industry and has Member Committees in nearly one hundred countries. Its mission is to promote the sustainable supply and use of energy for the greatest benefit of all people.

The complete Congress program is available online at www.wecmontreal2010.ca

Sponsors of WEC Montréal 2010
WEC Montreal 2010 enjoys support from a number of companies and organizations. Hydro-Québec and the Energy Council of Canada are the hosts of WEC Montréal 2010. The Government of Quebec, the Government of Canada and Rio Tinto Alcan are associated with the event as principal sponsors. Several other partners have agreed to contribute to making the Congress a success, including ABB, EDF, SNC-Lavalin, Hatch, HP, Eni, Ernst & Young, GDF SUEZ, RSW, KPMG, Siemens, Total, Alstom, Schneider Electric, CAPP, Gaz Métro, AECOM, Dessau, Cima+, Suncor Energy, SAP, PricewaterhouseCoopers, Tourisme Québec, African Development Bank, Ultramar, Valero, Mercuria Energy Group, Duke Energy, Enbridge, Encana, BPR, Cascades, Osisoft, Emera and ExxonMobil.

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