Is paying the young men not to work swems paying for other things other than lifting oil. Thanks. Rank, you really have been a trail blazer for over ten years now and in the beginning i know it was very hard and lonely out there among conservatives calling for the importance of reducing oil status as a strategy commodity, why . Well apart from the fact yall told me that was an important thing to do, it kind of dawned mejia that it was an important thing to do. It became so transparently obvious that as has been observed here and elsewhere before, if we prs in this only ce of paying not substantial amounts but through the nose to people who principlely, not exclusively but principlely in terms of setting the price are adversaries of this country, many of them enabling the war weve involved in, i call it the war for the free world, it is the war of our time, is simply insanity. And if we have a choice not to persist in that, that moves to the top of national priorities. And i just want to say thank you to you guys and to this council for being the path finders in terms of explaining how this can work, how it can work makeically, how it can work in a very practical, very cost effective, veneer term way if we simply dont the solutions that youve identified for fuel choice specifically. So thank you. Thank you, frank. Im turning over to john. You are president of shell oil north america. Have you a great understanding of the oil and gas industry. What we are seeing in this picture. Everyone recognize the location on the map. That bright spot is north dakota. Thats not a big city like new york that is shining brightly from a satellite photo. What we are seeing there is flaired natural gas flairs. Im seeing money going up in smoke. John, with your experience in the oil and gas industry, talk to us about how Companies Like so n, like shell, like bp monetize northerly gas that is currently being wasted. How important is it to open that sector to competition so that money going up in smoke can be turned into something that lowers the price of fuel for americans . Let me respond in two ways. The first is that while you will not hear it from publicly held Oil Companies, there is an awareness and a deep concern that over the next four to five years Global Demand for oil, particularly with china, india and the developing world continuing to want more, Global Demand will exceed Global Supply by several Million Barrels a day. In the first instance that has a huge impact on price. And the price of course will serve to hold the Global Economy in check unfortunately. But still there will be that demand. Auto Companies Reported that china auto purchasing in september of this year exceeded any other previous month in history. So the chinese love mobblet the way americans love mobblet. And thats a huge impact on Global Demand. So i predicted for some years ow that whether 2016 or 2018 there will not be enough oil. Not because the world doesnt have a lot of oil. But the technical difficulties of getting oil from new reservoirs while old ones decline is overwhelming to the industry. Whether its deep water brazil, whether its arctic reserves, whether its east africa, whether its other difficult base sins, there simply cannot be enough done to meet the Global Demand in the middle of this decade. Thats point one. Point two, the Technology Revolution that has opened up shale formations including the incredible amount of intelligence in the well. We all think the world of smartphones. The technology that has gone into the well leaves in my opinion smartphones in the back of the race in terms of making use of good technology. And whether its the Aerospace Industry or the oil and gas industry, the race for technology is never ending. And that new technology in the oil and gas industry has opened up such new reserve, probable, possible and proven that there is no end in sight to the expanded availability of natural gas, not only in this country but in many other formations around the world. That natural gas doesnt have a market that can adequately demand enough to get the gas price to where you could actually continue to grow gas supply. We have so much natural gas, we dont actually know how much we have. Eia is always a year or more behind the reporting and their reporting numbers are incredibly amazing if you follow it. One year 1,200 additional trillion cube bick feet reported. And the number keeps growing. What is needed is a new market. What the Oil Companies are particularly concerned about is the price of natural gas in order to develop their reserves completely. And the way not to increase the price of natural gas is by making more electricity from natural gas. Thats a low value added contribution to the Natural Gas Industry to simply export lng or to produce more power generating plants that are gassed based doesnt maximize the value. What maximizes the value of molecules of natural gas is when you apply technology such as meth nol hol or is aking other things which more satisfying contributor to the economy over time. Meth thatd about make nol from natural gas, a problem is the value existing in the refinery system. This is not easily written down. But at the same time if there re the kind of enablers, regulatory enablers that open a market for natural gas, then there is an additional opportunity for companies to invest to make methanol. That doesnt exist today. That has to change before the Oil Companies will get interested. But when exxon bought x. T. O. And yes they were accused of overpaying for it, exxon saw the future. When my former Company Invested placesmounts of money in they see the long term value. These are long term Oriented Companies that make decision that is may not pay for decades. But frakly to my first point we dont have decades had is why we have to move more quickly unless we simply want to manage the crisis of shortage of all. Not gee politics, although that may aggravate the situation but because of supply demand factors. To draw from two points. What im hearing you as blessed as we are, the real game changer here in the Global Oil Market is not so much Oil Production but if we do the right things natural gas production. If we put natural gas and the various fuels that can be made from it as well as other commodities and the fuels that can be made from them in competition with oil, thats the game changer and natural gas lets us do that. Oil is old and dirty. The kind of uses that you have from oil arent going to go away. They are not going to disappear over night. But the real game changer yes, not just for the United States but the world as a whole is the further development of the uses of natural gas. One more clarifying point, we ethanol sound nd alike. You can drink ethanol but dont want to drink methanol. You will have a bad headache. They are both liquid fuels. They both can be used in vehicles. They are alcohols and unlike ethanol methanol can approximate be made from natural gas. And i introduced you earlier. Please talk to us about recycling co 2 into fuels and chemicals. To be here. Easure recycling co 2 is an interesting concept. Nature is not efficient. Because nature requires nurture and nurture means you need to put more. 1 o synthesis is less than efficiency. So chemistry is the way to recycle co 2. F you have co2 and water and Inexpensive Energy sources we can split water, mike hide general, we can mix it and make it by the buckets. In fact were involved in a making in iceland we are a day. Ns of methanol co2 recycling will happen in the long term future because man kind does not have. Energy shortage Energy Storage and Energy Carrier problem. Sun is going to be there for the next four and a half billion years. It all came from sun. So we can use any Energy Sources 2 and water. With co short term what i would propose or this council is convert shale gas to mrk ethanol. We can make it by the buckets and we can make all the products that man kind needs. Without carbon you and i wouldnt be here. This is the message id like to give. Every time we exhale we let more carbon out in the air. We might as well view it as a resource. If its a resource that companies can make money from and convert it into fuel, that is likely to solve a lot of problems. The m going to turn to onomic et at the shea at the embassy of vale. Israel. I hope im not embarrassing anyone. For those of you who dont know israel has taken a lot of initiative in terms from a government perspective to address the oil monly and amongst that amongst the main initiatives one of them is a Million Dollar prize awarded next month to the person developing the most innovate tive approach to oil substutes over the previous year. Through a purely certain dip douse circumstance i find myself is it ago cross from the winner who was announced today. Congratulations. I can say that we are thrilled. The award was given for the economics of methanol, not ethanol. Im honored. My colleague i think im sharing with my colleague and its great recognition of my Research Work over the years. Thank you very much. [applause] just one clarification. This prize is going to be an annual prize. It will be given every year to the person or persons who will demonstrate biggest achievement to rds finding alternatives oil. I know the government of israel is a ill Administrative Team of judges and will be asking for submissions from around around the world to submit their proposal for next years prize. I would only add while i have your attention that the prize is just one piece in a really concerted focused effort by the government of israel to address the world of oil substitutes. Hundreds of millions are being vested in research and development, coinvestment etc. Were very proud of this and honored that the original corecipient will be the doctor. Any of you who can attend next month, seriously consider it. Its in the spirit of what is being said around the table, we view it as a Global Initiative for the free world and were trying to do our small part in making the world a better place so thank you very much. From a tiny country lets go to a giant country. Secretary general of the International Energy security forum. In an annual event held beijing. Its the chinese largest think tank and the largest think tank in the world. Being in beijing i was very struck to see that the main streets in beijing are 12 and 16 lane highways full of brand new cars, full of brand new s. U. V. S, very large new cars. Chinas economy is growing very fast even within a Global Economic downturn. How fast is chinas Oil Consumption expected to grow as we move forward . Big question. Since 1993 chinese have become ninth importer. China has become cole importer. [indiscernible] we have the highest price of automobiles, the highest soline price and the indiscernible] the Chinese People dont know where the economy will go. This year china will surpass the u. S. A. As the Number One Oil importer. Only can say there are opportunities of collaboration between u. S. A. And china, we can collaborate on electric motors, and we hopechnology [indiscernible] i urge all of you here to attend next year. Thank you. Our report includes domestic recommendations and International Recommendations. Would you please describe the International Recommendations especially as they pertain to what we just heard . There are a number of recommendation on the International Front. I would like to talk about one of them. The rest are in the report. We believe that for too long we have been hearing about the u. S. And brazil talking more about ethanol which is grain alcohol but as you can see in this slide here china has made its choice and china is going very ggressively toward adoption of methanol fuel. Today it is already a commercial fuel in all of those provinces that you see here in orange. There are standards in place. Here are provinces larger than the state of california where almost every fuel station serve it is fuel. They are standard so youre not doing it illegally. Its within the law. Very soon there are going to be a National Stad for methanol in china. So between the grain alcohol and wood alcohol, those two alcohols enable us to come up with a new idea. Ll it abc aligns alieans. The top three alcohol blending countries, among the three of those countries you find almost half of the worlds automobile making capacity. In other words, almost half of the worlds cars are made within the borders of those three countries. And when you are engaged in a coordinated approach among the top three auto makers or top two and brazil about another 4 million cars a year. China today makes 19 million United States about 10, but this gives one enough leverage to dictate what type of cars are going to be driven around the world. And if have you enough of a Critical Mass of cars that are comparable with a liquid fuel that can be made in the United States from natural gas as we heard, it can be made in other places in the world from other commodities, can be made in the future from co2. What we want to do is make sure that 50 of the cars made around the world, maybe more are comparable and certified and warranted to run on this alcohol fuel and we think that because changes and al cost and changes in Infrastructure Associated with this, it will be a very little hanging frute to open the door to a fuel that offers so many economic, environmental and strategic benefits. I would just add that in china the drive for methanol fuel adoption was mostly environmental. Those of you who visited major cities in china know what im talking about when we talk about air prution problem. Chinese are increasingly aware of the problem and they would like to see cleaner skies, blue skies for a change and the pressure is mounting to really dont cleaner burning fuels. I think there is a unique opportunity here to bring those three countries together in a concerted effort and thats one of our primary recommendations in this reported on the International Front. Thanks. Just to point out when you said standard in demine, you dont mean where people have to use it. You mean at a particular pump you know exactly what is going into your car when i buy a particular product. What struck me also in china is it is made from coal and what struck me is that the fuel is so economic, its so cheap as compared to gasoline. Let me see if we can find the slide here. If approximate you look at this graph, this is the price of methanol compared to the price of gasoline. The price is so competitive compared to gasoline that you actually have illegal blending going on that this is really economically driven. Its not something that is top down driven or anything like that. I want to jump over to darren of the defense counsel and put you on the spot a little bit as one of the representatives of the environmental organizations in the room. You hear many, many voices in the Environmental Movement over the years have called for High Oil Prices. A lot of environmentalist believe that High Oil Prices are good for the environment. We have High Oil Prices. Are High Oil Prices good for the environment . No. High oil prices in and of themselves are not good for the environment. That is something that is costly to the u. S. Economy, its costly to the consumers and because they have little choice but to continue buying oil at sky high amounts in order to make their daily rounds, its not what drives better environmental out comes. What drives better environmental out comes are good policies such as a higher fuel economy standards. And other alternatives for americans to use besides their cars in order to make their daily rounds. The good news for the environment in the United States right now is the fact that it looks like Oil Consumption may 2007 and ed a peak in looking ahead as a friend of mine at exxon mobile said is efficiency as far as the eye can see. We see efficient vehicles on the road dritch by policy and the other thing that is happening is to project at a set percentage out into infinity which is foolish and looks like were reaching a sat relation point in termings of per capita driving. And these two facts are driving our Oil Consumption down slowly and were seeing pollution peak as well. What is happening elsewhere in the world is crucial of course. What happens now to capitalize on this remarkable fact in the u. S. Is crucial too. Hopefully this will make scaling alternatives up easier because efficiency and reduced consumption is just part of the equation. Thats why im gratfide to hear so much talk about competition. Now the question is if we can envision a world where we use less oil, can we ramp up real competition for it so that when you pull up to a gas pump its more akin to walking down any aisle in a Grocery Store and looking at multsm product lines as opposed to a monoculture in the energy sector. To wrap that up, for the supply side whether its electricity or li