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Reducing World Reducing World Dependence on Oil in Dependence on Oil in
TransportationTransportationSagi DaganSagi Dagan
The National Economic CouncilThe National Economic CouncilPrime Minister’s officePrime Minister’s office
10.11.201010.11.2010
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Much higher costs of oil production
Sharp increase in oil demand in Asia Changes in environmental policy worldwide
The “business as usual” scenario
Expected price of 200$ per barrel ,within the next decade; high volatility
Source: IEA, Lloyds, 6/2010
Increasing dependence of China and India on oil from the Persian Gulf
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The Geopolitical Dimension
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Consequences of oil dependence
Most global oil dependence is due to transportation
600 million new cars will be sold by 2020
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Oil Substitutes for Transportation
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Advanced research in relevant scientific fields Over 50 serious research groups
Business activity and investments in the field Over 200 M$ already invested in 60 companies and start-ups
Existing Industrial clusters enable establishment of the field
Agriculture and Biotechnolgy Chemistry and Chemical Engineering. Software and Electronics Defense industry
Israel has significant abilities
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Prevents the entry of: Entrepreneurs and firms Researchers Investors
Lack of certainty!
Main Barrier in the field
Certainty of government effort is crucial!
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Goal:
Israel as a center of industry and research, a leader in development of technologies which reduce world dependence on oil for transportation, and their worldwide implementation
Main principles: Certainty: assuring continuity and stability of government
effort Cooperation: on the international, business and academic
level for maximum leverage of government resources and for the focus of worldwide attention
Allow private initiative to choose technological path
National plan
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Tools
Steady budget for 10 years Basic and applied research Knowledge transfer Investment funds International cooperation
Thank you