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
Sharp increase in oil demand in Asia
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! 7
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
Basic and applied research
Knowledge transfer
Investment funds
International cooperation
Thank you