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

2

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

3

The Geopolitical Dimension

4

Consequences of oil dependence

Most global oil dependence is due to transportation

600 million new cars will be sold by 2020

5

Oil Substitutes for Transportation

6

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

7

Prevents the entry of: Entrepreneurs and firms Researchers Investors

Lack of certainty!

Main Barrier in the field

Certainty of government effort is crucial!

8

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

9

Tools

Steady budget for 10 years Basic and applied research Knowledge transfer Investment funds International cooperation

Thank you