World Petroleum Congress

Toespraak | 07-12-2011

[Voice-over DutchMasters, part 1]

Holland... a small country with a most remarkable role in the history of the world. Art... science... philosophy... trade... the Dutch were renowned for accomplishing outstanding performances with world- changing impact. Due to its central position in Europe, easy access to the ports of Amsterdam and Rotterdam, its universities, trade and freedom of religion, Holland became a main force in the centre of the world.

A strong awareness of the importance of efficient trade and international collaboration was deeply embedded in the Dutch mentality, enabling Dutch Masters of versatile skills to play a leading role in the world. Ever since the 15th century the Dutch effectively fought the dangers of the North Sea and established themselves as master rulers of the water, reclaiming and cultivating land where ever possible... and impossible.

Driven by their strong convictions and innovative ideas, and ultimately using their bare hands, the Dutch created their own country... bit by bit, acre by acre. And so Holland turned into a country with a rich history in the energy field: Rotterdam, which became the main energy port of the European continent...

Amsterdam, the transit port of the European coal transportation... and the discovery of the Groningen Gas Field, the world’s largest in those days. A discerning trademark of the energy companies in Holland is the strong encouragement of the Dutch government. World class institutions and governance, effective trade missions... an open mind... and a clear focus on international collaboration have resulted in a stimulating atmosphere which allows companies to experiment... explore... and expand.

The making of the Dutch gas hub

Your Excellencies, ladies and gentlemen,

As the film shows, the Netherlands has faced challenges throughout its history. Challenges set by the size of our country. The unpredictable sea. Our dense population. Our limited energy supplies. Yet throughout our history, we have overcome those challenges. How? By innovating. Creating new land. Taming the waters. Managing our cities. Turning wind into energy.

Today, the world faces some daunting challenges. Many are being addressed at this twentieth World Petroleum Congress. Like: how can we increase the benefits of the exploitation of natural resources for our people and societies? And how can the energy sector contribute to a healthy economy which combines green and growth? And lower carbon emissions? Delegates from two hundred countries are now at work in Durban, South Africa, on a new climate agreement. They can succeed if all of us – governments, industry, knowledge institutions and NGOs – take our share of responsibility.

Some see the energy sector as the problem. I believe it can and must be part of the solution. Take gas. The Netherlands became a major gas producer overnight, following the discovery of the Slochteren gas field, back in 1959. We suddenly had a new source of wealth and prosperity. Resources we had to learn to use in the interest of our economy and our people.

Over the years, we developed a state-of-the-art gas infrastructure. We connected virtually every household to the gas grid. And many energy-intensive companies, too. We also built connections with our neighbouring countries. Founding the Northwest European gas market. But how will we fare in the future? How will we deal with declining domestic gas production in the years to come, and the urgent need to curb carbon emissions?

The Netherlands believes that gas is a big part of the answer! Both as a transition fuel and as an integral part of the energy mix of the future. Why?

First, because the world has enough gas to meet our needs for 120 to 250 years.

Second, because gas is flexible. It’s easy to switch a gas-fired power station on and off. Not so with wind or solar energy. So in a future with more renewable energy, gas is the ideal back-up fuel. It can play an important role in the transition to more sustainable energy. Last but not least, gas is the cleanest of all fossil fuels.

A gas-fired power plant emits far less CO2 than a coal-fired plant. So we can cut carbon emissions simply by increasing the share of gas in the energy mix. And as the cost of carbon rises and new technologies make gas even cleaner and more efficient, gas is becoming more cost-effective than coal.

The Netherlands is in favour of a 40 per cent reduction in carbon emissions by 2035 within the European Union. Gas needs to be part of our common strategy.

No wonder the International Energy Agency is predicting a ‘golden age for gas’! Many countries are already increasing the share of gas in their energy mix. That includes Northwest Europe. Yet gas production in the region is declining. So we will need to import more gas for the foreseeable future. [/voice-over]

Ladies and gentlemen,

The Netherlands is ready to shoulder its responsibility. Both in Europe and in the global community. By making the most of our fifty years of expertise in the field of gas, our state-of-the-art gas infrastructure and our highly competitive companies.

That is why we have increased our capacity for trading, transporting and storing gas. We have intensified our energy relations with gas-exporting countries, from Russia and Norway to Algeria and Qatar. Her Majesty the Queen recently opened the new Gate Terminal in Rotterdam, where the world’s largest LNG ships can now dock.

By doing all this, we have become the ‘gas hub’ of Northwest Europe. As the next film will show, we have made the transition from a purely gas-producing country to a gas-trading country as well. We are now a major player in the global gas market, enhancing security of gas supply for Northwest Europe for decades to come. And contributing to a more sustainable energy system.

[Voice-over Dutch Masters, part 2]

The Dutch have become true masters in managing the limited space and energy supplies available. This may seem a tricky issue... but in fact has challenged companies, governments and universities to come up with revolutionary solutions for a world in transition.

The natural and social circumstances have enabled the Dutch universities, research centres like TNO, Shell Projects & Technology and the Energy Valley to accumulate environmental and scientific knowledge of an exceptional level... while carefully watching over the delicate balance between economical and environmental interests.

Holland offers a world standard of scientific education, with the quality of Dutch engineers being considered a league of its own. Dutch engineers can be found working for all major players in the global field of energy. Dutch companies servicing the oil and gas industry are a familiar sight all around the world. With up to a hundred years of experience, these companies are a renowned party in the global field of offshore installation... offering new techniques to drill at exceptional depths of over 3000 metres... designing and building ships, platforms, terminals, tools and applications... and developing technologies to treat, transport and store natural gas.

But Holland has far more to offer, being the transit and trading port for oil and gas, it is ready to function as a gas hub, due to the extensive networks of Gasunie and the largest gas field of the European union. But also thanks to a high production from small gas fields and the excellent facilities for gas storage. Gasunie offers traders excellent infrastructures and services in order to transport gas all around the European Union.

Gas will be vital to guarantee future needs for energy. It will also be crucial for meeting climate goals. Therefore, fostering game-changing innovation is an essential part of the policy of the Dutch government with the aim to generate more economic activities. New technologies will allow the Dutch to explore and exploit new gas fields. And to create new applications for gas.

In the 17th Century shipping created a Golden Age for Holland. In the 21st Century, now it’s time to create a new age, a Golden age of gas. [/voice-over]

Fostering Innovation

Ladies and gentlemen,

Speaking of the Dutch Golden Age – do you know what made it possible? New ideas. Innovation. Cooperation. Investment. Isn’t that what we need to meet the challenges facing our societies today? Just as the title of this congress suggests?

I admit that the challenges are daunting. Just look at the increase in cars predicted by the International Energy Agency. There are now 500 cars for every thousand Europeans. Compared with 30 for every thousand Chinese. But by 2035, there will be 300 cars for every thousand Chinese! Ten times more than today!

Will we be able to fuel all those cars? Will we be able to meet global energy demand, set to increase by a third over the next 25 years? And what about the environment and public health? The answer, again, is innovation, cooperation and investment. That is what Dutch government policy is focusing on. We need to do all we can to enable companies to develop new technologies that will produce more clean energy at less cost. It’s the only way to secure energy supplies, reduce carbon emissions and keep energy prices in check.

What will those new technologies be? That is not for governments to say. Imagine governments deciding back in 1960 that everyone had to have a personal computer. That would have meant backing a promising new technology in its infancy, at a tremendous cost to taxpayers. By analogy, I believe we have to trust the market to choose the most cost-efficient technologies to meet both our energy needs and our environmental goals. The role of government is to create the best conditions for them to do so.

In the Netherlands, we have asked companies and research institutions what they need in order to innovate and compete in the global market. Our focus is on ten top sectors of our economy, from water and logistics to high-tech and energy. Sectors that can both strengthen our potential for growth and provide sustainable solutions for the challenges of today and tomorrow. We are now working on innovation contracts between entrepreneurs, researchers and government in each of the top sectors. These contracts will define what kind of research is done. And who pays for it.

I am actively involved. But I will not tell sectors what to do.For I believe they know best. True innovation, fresh ideas and sustainable solutions come not from central government but from society. From entrepreneurs and researchers. Cooperation leads to fantastic new initiatives. Like Masdar City, a project aimed at creating a new zero-emissions city in Abu Dhabi. Or the Sports City Stadium here in Qatar, planned for the World Cup in 2022. The stadium will produce fully sustainable energy not only for its own use, but for the city grid as well!

In Holland, I recently signed a ‘Green Deal’ with local parties to increase the number of electric cars to twenty thousand by 2015 and hopefully to one million by 2025. Isn’t that a solution for the world’s growing car fleet? China is already switching to electric bikes and mopeds in large cities like Beijing and Shanghai. With a noticeable improvement in air quality and public health.

And look at new initiatives for bio-energy! This is emerging as one of the most promising and cost-effective sources of sustainable energy in the Netherlands. We are steadily becoming a ‘green gas hub’, producing and trading bio-energy and biomass. A link in the global market chain.

As of last month, biomass is being traded alongside gas and electricity on the APX-ENDEX energy exchange in Amsterdam. And Dutch industry has agreed to co-firing about 10 per cent biomass in coal-fired electricity plants. Making coal plants cleaner. Innovation is the way forward. It means we need to educate more young people in the energy field. Like we will do at the Energy Academy Europe in the North of the Netherlands as of next fall. A new academy for research and education founded by four Dutch institutions and universities. There’s a lot of work to be done to reach a sustainable energy future, with cleaner fossil energy and more renewables. I believe we can do it. If governments, industry and research institutions team up.

That’s what we are doing in the Netherlands today, as the next – and final – film will show.

[Voice-over Dutch Masters, part 3]

The development of new technologies enables our world in transition to explore innovative options. Although oil and gas resources are limited, new drilling techniques turn unreachable oil and gas fields into accessible supplies... not only gaining transition enablers... but also gaining time... optimizing the use of clean fossil fuel, nuclear fission and bio fuel.

The University of Technology in Delft and research institute TNO actively combine strong monodisciplines, such as applied physics, aerospace engineering, materials science and policy analysis... and bring together businesses, universities and governments... in a multidisciplinary energy research and education programme. Together they deliver the technology, innovation and the specialists needed for a successful energy transition and for the development of true renewables.

Shell, with its major research centre in Amsterdam, has a key role in developing new technologies for conversion of natural gas into clean fuels, lubricants and petrochemical feedstock or GTL products. Shell has also a key role in the LNG production worldwide, with huge innovative projects in countries like Qatar and Australia and as frontrunner in the area of floating LNG.

With the new Gate LNG terminal in Rotterdam, established by Gasunie and the Dutch company Vopak, Holland is connected to the global gas market and will play a crucial role as LNG-gate to North Western Europe. Like oil, natural gas will remain an integral part of the energy mix of this part of Europe. Dutch Gasunie offers traders excellent infrastructures and services in order to store and transport gas all around the European Union.

Thanks to Holland’s flexibility, its continuing success in exploiting natural resources, its infrastructures… its outstanding main ports Rotterdam and Amsterdam with open access to the world... its oil and gas supplies being the enablers of the world’s energy transition... and thanks to the innovative drive of Dutch engineers, companies, universities and ministries... Holland is and will remain the leading energy and trade hub of North Western Europe. [/voice-over]

Dutch openness

Ladies and gentlemen,

As these three short films have shown, the Netherlands has been an open country throughout its history. That’s what made us successful. We were open to new challenges. Open to new opportunities in the world. Open to newcomers on our own soil. We still are. That is why six-thousand five-hundred (6,500) foreign companies from all over the world have set up offices in our country. Including major energy companies. Like InterGen from the United States, BP from the UK, Petrobras from Brazil and Gazprom from Russia. And Saudi Aramco, Taqa and Kuwait Petroleum from the Gulf.

They were attracted by our strategic location in Europe, our attractive fiscal and business climate, and an environment conducive to cooperation and innovation. We are constantly working to improve our investment climate. By lowering corporate income tax to 25 per cent, in spite of budget restraints. By introducing new fiscal benefits for companies that invest in research and development. By cutting red tape and making it easier to hire highly qualified expats.

We are also actively assisting foreign companies in setting up shop in the Netherlands, especially in a top sector like energy. Our openness works both ways. Dutch energy companies are active all over the world. They are involved in deep-sea oil and gas exploration and exploitation off the coast of Rio de Janeiro. In the development of the Jamal field in Siberia. And here in Qatar, Royal Dutch Shell has set up the world’s largest gas-to-liquids plant.

Dutch companies and research institutions are naturally open to cooperation. Like our research organisation TNO, with its branch at the Qatar Science and Technology Park. It is involved in projects ranging from water management to maximising the production of oil and gas fields. It works with many national oil companies, including Saudi Aramco.

Ladies and gentlemen,

Let me conclude. You have seen Dutch companies and knowledge institutions working with companies and countries around the world to solve the most pressing issues of our time. Issues that you are discussing at this twentieth World Petroleum Congress.

For fifty years, the Netherlands has pursued a consistent strategy to make optimal use of our national gas resources and generate the highest public benefit. We continue to do so as the gas hub for Northwest Europe and an important player in the global energy market. Fostering innovation, cooperation and openness in the process.

Cooperation is – and has to be – broader than simply cooperation between companies. We live in an interdependent world. Many challenges lie ahead. Challenges in terms of energy security, sustainability and economic development. Governments need to work together on these issues. And the Dutch government is happy to do so. For the sake of our common energy future.

I hope our experience can benefit other companies, research institutions and countries. Including here in the Arab world, where new opportunities for growth and democracy are emerging. [The Netherlands commends Qatar for its leadership in the region.] We are here to learn from each other. To generate new energy solutions for all. As always, the Netherlands stands ready to be a true partner around the globe.

Thank you.