Stretching the availability of non-renewable resources

Abstract

Stretching the availability of non-renewable resources at reasonable prices is critical. A number of principles for achieving this are explained by reference to examples. They point to the importance of efficiency and to the need for governments, industry and financiers to act in concert to achieve it. A classification of resources that is both complete and coherent with other management information is reviewed for its potential both to allow existing resource inventories to be compared and for its potential to serve key stakeholders as a global standard facilitating efficient operations. This is the United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources (UNFC 2009). It provides a framework for communicating information on reserves and resources by seeing recoverable quantities in light of the projects that recover them. It is reflective of economic and social conditions, industrial and technical conditions and, of course, the natural endowment - the geological conditions. An account is given of how government and industry have been able to act in concert over nearly four decades to stretch the petroleum resources of Norway while reducing emissions and improving the return on capital employed through staging the developments. Finally, the need for improved efficiency, demanding common standards for common markets is reiterated. The introduction of international financial reporting standards for extractive activities, now in preparation, is seen as a golden opportunity to implement this.