Falih noted that development of alternatives will face serious economic and technical impediments in addition to customer acceptance and the impact on food supplies and prices. “Calls to move away from fossil fuels … do not represent a practical or effective strategy, " he said. On the challenge often voiced about long-term energy reserves, Al-Falih explained that “out of a total liquid fuels resource endowment of 15 trillion barrels in place, the world has consumed only about 1 trillion or seven percent of the total resource base.” The challenge, Al-Falih further explained, is converting these resources into supplies while tackling a complex economic, environmental, policy, and technological environment. Elaborating on this issue, Al-Falih said that “the conversion question requires an ‘enabling environment' conducive to attracting the necessary investments … with a stable price for oil.” “Extreme volatility hinders the development of not only conventional and non-conventional liquid resources, but also alternative fuel sources,” he said. --MORE
