Sagi Dagan

Reducing World Dependence on Oil in Transportation Sagi Dagan The National Economic Council Prime Minister’s office 10.11.2010

The “business as usual” scenario

, Expected price of 200$ per barrel within the next decade; high volatility

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Much higher costs of oil production

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Sharp increase in oil demand in Asia

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Changes in environmental policy worldwide Source: IEA, Lloyds, 6/2010

The Geopolitical Dimension ď ą

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Increasing dependence of China and India on oil from the Persian Gulf

Consequences of oil dependence ď ą Most global oil dependence is due to transportation ď ą 600 million new cars will be sold by 2020

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Oil Substitutes for Transportation

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Israel has significant abilities  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 6

Main Barrier in the field

Lack of certainty!

Prevents the entry of:  Entrepreneurs and firms  Researchers  Investors

Certainty of government effort is crucial!

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National plan 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

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Cooperation: on the international, business and academic level for maximum leverage of government resources and for the focus of worldwide attention

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Allow private initiative to choose technological path

Tools

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Steady budget for 10 years

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Basic and applied research

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Knowledge transfer

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Investment funds

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International cooperation

Thank you