Carbon Management Technological Importance

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Carbon Management Technological Importance
Business Implications Martin WingroveAramco
Overseas Company

• PERF London March 29 2005

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Outline

• Saudi Aramco
• Challenges for Oil
• The Carbon Challenge
• Role of Technology
• Mobile
• Added Value
• Concluding Remarks

3
Outline

• Saudi Aramco
• Challenges for Oil
• The Carbon Challenge
• Role of Technology
• Mobile
• Added Value
• Concluding Remarks

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Global Oil Reserve Distribution
Source BP Statistical Review of World Energy
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Saudi Aramco Worldwide
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Saudi Aramco Domestic Operations
9 Marine / Terminals
36 Distribution Plants
6 Project Plants
MSC 10MM Barrel p/d
5 Refineries
8 Gas / NGL Plants
Oil reserves 259 billion barrelsGas reserves
231 trillion cft
58 GOSPs
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Saudi Aramco Joint Ventures
MOTOR OIL (HELLAS)
Saudi Petroleum
AOC TEAM
ASC
Saudi Aramco
Samref
Saudi Petroleum
Petro-Lube
Sasref
8
Major NOC/IOC Oil Gas Reserves
300
NOCs
IOCs
250
Oil NGL
Natural Gas
200
Billion BOE
150
100
50
0
SA
PDVSA
Shell
BP
Chevron
TOTAL
KPC
ADNOC
Exxon
Gas Reserves Total Reserves
26
51
50
29
36
13
9
42
45
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Outline

• Saudi Aramco
• Challenges for Oil
• The Carbon Challenge for Oil
• Role of Technology
• Mobile
• Added Value
• Concluding Remarks

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RT Challenge Promote Oil Use
Exploration
Associated Industries
Consumer
Production
Retail
Refining
Supply
Demand
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Oil FutureDestinations Challenges
Hydrogen

• Promote Oil Use

Oil Demand Challenge
Sulfur
Oil
Oil Supply Challenge
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Oil FutureDestinations Challenges
Hydrogen
Carbon

• Promote Oil Use

Oil Demand Challenge
Sulfur
Oil
Oil Supply Challenge
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Importance of Carbon Management

• Maintain Petroleum Products as the Fuel-of-
  Choice
• Responsible Product Use associated with air
  quality
• Hydrogen Economy Reality
• CM Closer to the Oil Producer Refiner
• Value Added carbon economy reduces H2 costs and
  motivates hydrogen economy progress
• Implications
• Carbon Management is Fundamental to the Future
  of Petroleum

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Outline

• Saudi Aramco
• Challenges for Oil
• The Carbon Challenge
• Role of Technology
• Mobile
• Added Value
• Concluding Remarks

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Effective Carbon Management

• Provides License to Operate
• National Government Influences
• Consumer Sentiment
• It Makes Sound Economic Sense!

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Global ChallengeMan-Made CO2 Emissions
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Creating the Future for Oil

• Motive
• Oil contributes significantly to global manmade
  CO2 emissions.
• Intent
• Develop carbon mitigation technologies and
  support emerging processes that promote oil use
• Insights
• Current CO2 solutions favor stationary
• Mobile sources important to future of oil.
• EOR Applications In Kingdom
• Potential carbon product opportunities

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Outline

• Saudi Aramco
• Importance of Carbon Management
• The Carbon Challenge for Oil
• Role of Technology
• Mobile
• Added Value
• Concluding Remarks

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Technology The Future for Oil
? Promoting Substitution
? Favoring Oil
The Future For Oil
Governance
Infrastructure
Technology

• Create Distinctive Advantage
• Influence Consumer Sentiment
• Impact Industry Customer Preference
• Assure Legislative Compliance

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Transportation Oil Currently Dominant
Carbon Challenge for Oil
Oil Products 96 Global Transportation Market
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Global ChallengeMan-Made CO2 Emissions
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Global Trends Challenges

• Government Legislation Encourages Petroleum
  Substitution in Transportation
• Stricter Environmental Regulation
• Petroleum Product Tax
• Fuel Switching Incentives
• Alternative Renewable Fuel Initiatives
• Migration from Gasoline to Diesel (Europe
  Leading)
• Government Hydrogen RD Programs
• 5.7 Billion Programs (2003-2015)

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Business Destinations Targets

• Sequestration
• for EOR
• Mobile Pre-combustion C.C
• Mobile Post Combustion C.C
• New Carbon Products / Uses

Hydrogen
Carbon
Oil Demand Challenge
Sulfur
Oil
Oil Supply Challenge
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Carbon Product Opportunities
High
NanoMaterials
Electronic Materials
Engineering Composites
Value (s)
Carbon Fibers
Rubbers
Building Materials
Petroleum Coke
Low
Low
High
Technology Know How
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Outline

• Saudi Aramco
• Challenges for Oil
• The Carbon Challenge
• Role of Technology
• Mobile
• Added Value
• Concluding Remarks

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Concluding Remarks

• Carbon Challenge for oil not going away
• The Challenge is Huge
• Companies with Petroleum Interest should
  collaborate on environmental issues
• Work with Automotive Industry
• Economic Proposition is Compelling
• Promotes Clean Fuels and Energy products
• Positions petroleum as a responsible product
• New carbon based Product Opportunities
• Adopt Portfolio RT Investment Approaches

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RT Challenge
Supply
Demand
Developing Know How Through Know Who
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Carbon Management Technology Road Map
CO2 Capture Mobile Sources
CO2 Geological Sequestration
CO2 Based Industrial Applications
CO2 EOR
CO2 Capture Fixed Sources
Industrial Research Alliances
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Saudi Aramco taking the initiative to host, in
Dhahran
First Regional Symposium on Carbon
Management Carbon Management Challenges and
Opportunities November 28-30, 2005
Purpose Fostering interest amongst regional
petroleum industry NOCs and Private oil
companies in contributing to the global effort of
CO2 mitigation.