Ms Ruth Cairnie was appointed VP for Group Strategy in April 2011 and EVP for Strategy and Planning in September 2011. She is responsible for the development of Shell's global Group strategy. This includes understanding the external business environment, both long term (Shell scenarios) and shorter term; development of long-term strategic options addressing developments in technology, environmental challenges and the shifting world economic footprint; and translation into business plans and appraisal. Her full bio can be found here. She will be speaking at the Singapore Energy Summit on the Featured Plenary, "Connecting the Dots: Energy-Water-Food Nexus" on 22 October 2012.
Q1: As Executive Vice President of Strategy and Planning for an oil and gas giant, how do you view the evolution of the energy landscape in Asia in 2050?
Ruth Cairnie: More than 9 billion people are expected to live on Earth by 2050, up from 7 billion today. Asia's fast-growing cities will absorb much of this growth, with three in four people living in urban centres. Billions of people will rise out of energy poverty.
As living standards improve for many across the world and more people buy their first refrigerators, computers or cars, energy use will rise. Total global energy demand could double by mid-century from its level in 2000.
A range of sources will be needed to supply this vital energy over the coming decades.Up to 30% of the world's energy mix could come from renewables in 2050, with fossil fuels and nuclear providing the rest. At Shell we are finding ways to provide energy from cleaner sources and help customers use energy more efficiently.
Q2: What is your view on the dynamics between energy-water-food, which are seen by many countries as strategic assets?
Cairnie: The world's water, energy and food systems are tightly linked. Water is needed for almost all forms of energy production; energy is needed to treat and transport water; and both water and energy are needed to grow food.
In the coming decades these vital resources will come under greater pressure. The world's growing population and increased prosperity will push up global demand for energy, as well as food and water supplies. This relationship between vital resources, the so-called "energy-water-food nexus", is moving higher on the agendas of governments, NGOs and businesses, including Shell.
Q3: What approach is Shell taking to address the stresses on energy, water and food resources?
Cairnie: To better understand the connections between energy, water and food systems, we brought together academics, specialists from industry, along with experts from governments and non-governmental organisations in 2011.
Our work together through research activities and meetings highlighted two important ways to help tackle the stresses on energy, water and food: greenhouse gas regulation and pricing, and more sustainable urban development: for example, designing smarter, energy-efficient cities could help reduce demand for energy and water. Such cities would integrate transport, energy, water and waste systems much more effectively than today's cities. While new cities offer opportunities for change, we also recognize there is a need to build greater understanding of the nexus issue in order to bring a corresponding change in consumer behaviour and public sentiment.
For this reason, we at Shell have been working with our partners to raise awareness on the energy-food-water nexus by engaging actively in public dialogues such as the Singapore Energy Summit. We believe we can be more innovative together than we can separately.
Q4: Shell sees a potential "zone of uncertainty" with a huge energy supply gap in 2050. What is Shell's growth strategy to help fill this gap?
Cairnie: With the doubling of energy demand and renewables unlikely to supply more than 30 percent by 2050--all forms of energy will be required.
Natural gas offers an affordable and environmentally acceptable option to power people's lives today. It will also help to meet the world's rising demand for more, cleaner energy into the future. Shell is using advanced technology to open up new resources of natural gas. Cooling gas to liquid allows us to ship it to faraway markets and we are moving ahead to build the world's first giant floating facility to turn gas to liquid. In Qatar, we have constructed the world's largest plant to turn natural gas into liquid products.
Q5: For decades, Shell has worked with young engineers around the world through projects such as the Shell Eco-marathon to tackle the challenge of energy efficiency and mobility. What interesting perspectives have the young engineers brought to Shell?
Cairnie: Shell Eco-marathon is a global educational project that challenges the next generation to look differently at energy and how we use it. It encourages innovation, reinforces conservation and fosters the development of leading technology for greater energy efficiency. By encouraging students around the world to design, build and test vehicles that travel farther using less energy, Shell Eco-marathon provides an education platform for students to apply real-life skills to meet the increasing demand for energy. These students and their innovative ideas can help shape the future of energy.
We've seen the students let their imaginations run wild and experiment with technology and fuels to develop creative and inventive mobility solutions. With one big goal of fuel efficiency and few limitations, it's amazing where those imaginations have taken us through the years. They are building the cars of tomorrow, with greater energy efficiency and cleaner combustion.