G8-magazine-2012-lr

Summit 2012 Camp David, Maryland



CONTENTS EDITORIAL Credits.................................................................................................................. 2 Forward - Stefan Tevis...................................................................................55 Welcome - Barack Obama ..........................................................................55 Welcome - Hilary Rodham Clinton ...........................................................55 About the G8 ....................................................................................................55 Camp David - The Presidential Retreat...................................................55 Energy: Focus on Fundamentals...............................................................55 Nuclear Power in the Post-Fukushima World ......................................55 Additional Elliot Gue Article........................................................................55 10 Years Later: Utah .......................................................................................55 NATIONS & LEADERS Barack Obama...................................................................................................55 Unitied States of America.............................................................................55 David Cameron.................................................................................................55 United Kingdom...............................................................................................55 Vladimir Putin/Dmitry Medvedev..............................................................55 Russia.................................................................................................................... 55 Angela Merkel....................................................................................................55 Federal Republic of Germany.....................................................................55 Yoshihiko Noba.................................................................................................55 Japan.................................................................................................................... 55 Mario Manti.........................................................................................................55 Italy .......................................................................................................................55 Steven Harper....................................................................................................55 Canada................................................................................................................. 55 François Hollande............................................................................................55 French Republic................................................................................................55 European Union................................................................................................55 Jose Barroso......................................................................................................55 G8SUMMIT2012 | 1

CREDITS Board Members and Executive Special “Thank You” is extended to the following for making this G8 Staff: Summit publication an outstanding success.... President & CEO: Stefan N. Tevis G8 Heads of State Personal Assistant Hellen “Nakupenda” G8 Delegates and Press G8 Organizing Committee Executive Offices: Ngendo Tourism Council of Frederick County Dennis Porter Exe Assistant to President: Kamille Turrentine Neil Wilkinson Tom Williamson Exe Assistant to President: Vanessa Jackson Dr. Aaron Barson Dr. Clifford Ferguson                                    Editor-in-Chief: Elliot Gue Brian - Syptec Gustaveson Family Creative & Design Director: Jordon Mazziotti Thank you to all of our Advertisers Assistant to the CD: Tahna Mazziotti General Council Legal: Carl Gustaveson Chief Financial Officer: Ken Rasmussen Chairman Designate: Alexander Church EVP Global Corp. Comm.: Peter Munson VP Sustainability & Development: Matthew Wilson VP Corporate Strategy: Stephan DeCarlo Int’l Business Consultant/Africa: Dr. Clifford Ferguson Sr. Int’l Correspondent/Australia: Diane Weeks VP Unstainable Energy: Sondra Bostwick Sales Coordinator: Veronica Lewis Head of Gov’t Think Tank: David Weeks AIDS Awareness Programmer: Victoria Ferguson Senior Correspondent: Roger Conrad VP Asian Affairs: Madan Subedi Special Contributing Editors & Feature Writers: Elliot Gue Energy Strategist Roger Conrad G20 Nations Deborah Harry Senior Journalist - UK Jordon Mazziotti Senior Journalist - USA Contact Information: Prestige Media Publications LLC 11075 South State Street, Suite #4 Legal Disclaimer: Sandy, Utah 84070 Copyright © 2012 - All material found herein is the property of Prestige Media Group and its affiliates. Any United States of America. reproduction or duplication of this magazine in any form without written consent is strictly prohibited. All Telephone: 001-801-428-1777 advice, legal counsel and opinions are the opinions of the writers and Prestige Media Group is not liable for Fax: 001-801-428-1778 any misinformation or issues that may arise from that information. Prestige Media Group recommends seeking Email: [email protected] legal counsel for any and all issues stemming from information contained herein. Website: www.prestigemediausa.com 2 | G8SUMMIT2012

FORWARD Prestige Media is proud to present to the world’s leaders in Camp David, Maryland, the publication for the 2012 G8 summit. We began covering the G7 in 1997, when Governor Romer, through his personal friendship with the then President of the U.S. Bill Clinton, hosted the summit in Denver Colorado. Our deepest thanks are due to the United States Government for allowing us to cite our credentials, and assisting us in producing this publication. The G8 summit, attended by the eight most powerful industrial nations, collectively accounting for 65% of the world’s GDP, provides an unequalled opportunity for world leaders to bring the most pressing issues of the day to the forefront of the world stage - the problems facing our planet and its’ future, and the multitude of races and species dependant on it. We are proud to have been able to play our part by bringing these enormously important issues into the public eye at such a high profile event, through the advertisers who have graced our pages, seeing our magazine as a major carrier of these themes to the world arena, and recognizing the high quality penetration of our distribution . This edition is exceptional in having secured the very best standard and quality of editorial writers, each an acclaimed expert in their respective field in each of the major topics of the G8, with an emphasis on climate change, the environment, and alternative & renewable energy. Our mission is to be their voice piece, keeping these themes to the forefront of everyone’s mind. We know that through a combined force of some of the largest companies in the world, a movement has begun which will be for the benefit of every one of us, as well as future generations. The problems we, as custodians of our planet face, are unprecedented. We must ensure that innovations and action promoted by governments, companies, and organizations are seized upon and embraced by us all. To a brighter and more sustainable future, Stefan N. Tevis President and CEO, Prestige Media G8SUMMIT2012 | 3

WELCOME Barack Obama President of United States President Barack Obama welcomes the world to the G8 Summit in Camp David, Maryland on May 18-19, 2012. On the move of the G8 Summit from Chicago to Camp David: “Somebody pointed out that I hadn’t had any of my counterparts, who I’ve worked with now for three years, up to Camp David. G8 tends to be a more informal setting in which we talk about a wide range of issues in a pretty intimate way. And the thinking was that people would enjoy be- ing in a more casual backdrop. I think the weather should be good that time of year.” Invitations of African Leaders: President Obama has invited African Leaders to join Leaders at the G-8 Summit at Camp David on May 19 for a discussion session on accelerating progress towards food security in Africa. The African Leaders who have been invited to participate in the Summit are: Chairperson of the African Union and President of Benin Yayi Boni Prime Minister Meles Zenawi of Ethiopia President John Mills of Ghana President Jakaya Kikwete of Tanzania  4 | G8SUMMIT2012



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Welcome Hilary Rodham Clinton Secretary of State The events of this past year affirm the continued need for comprehensive international coopera- tion, and the G-8 is an essential forum for that. We are alarmed for the ongoing violence in Syria, and we are concerned about the problems fac- ing Special Envoy Kofi Annan as he attempts to bring about a ceasefire and the end to violence. We are very watchful of this. And finally, we have begun discussing some of the transnational issues – terrorism, piracy, food security – that affect so many millions of people throughout the world. We are also going to be discussing our shared framework to support the democratic transitions and promote sustainable and inclusive economic growth through the Deauville Partnership in the Middle East and North Africa. So there’s a lot for us to discuss, and we have a full agenda ahead of us in preparation for the leaders meeting at Camp David. So again, I welcome my colleagues and look forward to our work together. Thank you all. G8SUMMIT2012 | 7

ABOUT THE G8 Kananaskis 2002. France is host of the Deau- ville G8 Summit in Deauville on May 26 and 27. The Group of Eight (G8) is a forum for It was last held in France in 2003 in Évian-les- the leaders of eight of the world’s Bains. most industrialized nations, aimed at finding common ground on key topics Depending on discretion the G8 presidency, ad- and solutions to global issues. The G8 ditional nations are invited. In the past these includes Canada, France, Germany, have included the Outreach Five which consist Italy, Japan, Russia, the United Kingdom and of Brazil, People’s Republic of China, India, Mex- the United States. While the leaders of these ico, and South Africa. These are widely consid- countries are in regular contact, they meet in ered the top emerging nations in the world. summit format as the G8 once a year. G8 PRESIDENCY The G8’s origin stems from meetings held in the 1970s between France’s Valéry Giscard The role of chairing the G8 rotates each calen- D’Estaing and Germany’s Helmut Schmidt when dar year among the member countries in the they were finance ministers. Each subsequent- following order: United States, United King- ly assumed the leadership of their respective dom, Russia, Germany, Japan, Italy, Canada and countries, just as the mid-1970s oil crisis was France. The European Union, though not part buffeting the world’s largest economies. French of this hosting rotation, also participates in the President Giscard D’Estaing urged the leaders G8 and is represented by the President of the of Germany, Italy, Japan, the United Kingdom European Council and the President of the Eu- and the United States to meet in 1975 to discuss ropean Commission. how to respond to the oil crisis. The country holding the G8 presidency is re- Canada joined the group in 1976 at the Puer- sponsible for hosting and organizing the sum- to Rico Summit hosted by the United States. mit and a number of ministerial-level prepara- The European Community, now the European tory meetings in the lead-up to the main event. Union, was given observer status the following The chair also bears the responsibility of speak- year at the London Summit. Russia became a ing on behalf of the G8 and engaging non- full-fledged member of the G8 in 1998. Canada has hosted four summits since 1976: Ottawa- Montebello 1981, Toronto 1988, Halifax 1995 and 8 | G8SUMMIT2012

member countries, non-governmental organi- zations and international organizations. PREPARATORY MEETINGS The host country organizes several prepara- tory meetings before the summit. G8 leaders’ personal representatives, known as Sherpas, attend these meetings to discuss potential agenda items. The Sherpas, usually high-rank- ing government officials, communicate directly with each other throughout the year. G8 foreign Ministers Foreign and finance ministers have always played a key role in the G-7/G-8, both at the summit itself and in the lead-up to the event. Other ministers meet as required. Since 1998, foreign and finance ministers have developed their own agenda and followed up on their commitments. G-8 foreign ministers deal spe- cifically with foreign and security policy issues and they support the efforts of the summit. Last year the G8 Foreign Ministers met in Par- is on 14-15 of March. Ministers discussed the ongoing subjects including: Libya, Broader Middle East and North Africa ing. further G8 action, and Middle East Peace Process Finance ministers meet regularly during the year. At a G-7 finance ministers meeting in Washington, D.C., in October 2008, for ex- ample, the ministers drafted a five-point plan aimed at easing the global financial crisis. It in- cluded recommendations such as taking steps to support struggling financial institutions and unfreeze credit and money markets.  G8SUMMIT2012 | 9

CAMP DAVID the presidential Retreat Camp David is the country retreat of the Roosevelt hosted Sir Winston Churchill in President of the United States and his guests. May 1943. It is located in low wooded hills about 62 miles (100 kilometers) north-northwest of Washing- Dwight Eisenhower held his first cabinet ton, D.C., on the property of Catoctin Moun- meeting there. tain Park in unincorporated Frederick County, Maryland, near the small town Thurmont. Lyndon B. Johnson often met with impor- tant advisors at the retreat and hosted It is officially known as Naval Support Facility Australian Prime Minister Harold Holt. Thurmont and is technically a military installa- tion; staffing is primarily provided by the U.S. Navy and the U.S. Marine Corps. First known as Hi-Catoctin. Camp David was originally built as a camp for federal government agents and their families, by the WPA, starting in 1935, opening in 1938. In 1942 it was converted to a presidential retreat by Franklin D. Roosevelt and renamed “Shangri-La”. Camp David received its present name from Dwight D. Eisenhower, in honor of his father and grandson, both named David. Camp David is not open to the public. Presidential Useage Every president since Franklin Roosevelt has made use of Camp David. Prestigious usage of Camp David by presi- dents include: 10 | G8SUMMIT2012

Gerald Ford hosted Indonesian President Bill Clinton hosted then Prime Minister Suharto. of the United Kingdom, Tony Blair, on several occasions in addition to numerous celebrities. George W. Bush hosted dignitaries, including the then President of Russia, Vladimir Putin in 2003 and hosted the then Prime Minister of the United King- dom, Gordon Brown, in 2007. This year Camp David was chosen by Presi- dent Obama to host the 2012 G8 Summit after being relocated from Chicago, Illinois. Jimmy Carter brokered the Camp David Accords there in September 1978 be- tween Egyptian President Anwar al-Sadat and Israeli Prime Minister Menachem Begin. In 1984, Ronald Reagan hosted the then Prime Minister of the United Kingdom, Margaret Thatcher. The United States have hosted the G8 Summit five times in the past which include: San Juan (1976); Williamsburg (1983); Houston (1990); Denver (1997); and Sea Island (2004).  George H.W. Bush’s daughter, Dorothy Welcome to Bush Koch, was married there in 1992, the Camp David first ever to do so. for the 2012 G8 Summit! G8SUMMIT2012 | 11

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energy: focus on the fundamentals by Elliott H. Gue oil for years to come and it’s time the world comes to grip with that reality. Three years ago, a spike in commod- ity prices fueled civil unrest in some There’s no doubt there are several short-term nations and contributed to the worst catalysts for the rise in oil prices this year. The global economic downturn in a genera- conflict in Libya has interrupted roughly 1.5 tion. million barrels per day of light sweet crude oil exports. Meanwhile, the tragic Sendai earth- The sharp rise in crude oil prices in early 2011 quake in Japan severely damaged the na- brought back painful memories of that 2008 tion’s nuclear and fossil fuel power generation price shock and there are myriad signs that ris- capacity and is supporting additional demand ing energy costs are prompting consumers to for oil and natural gas as alternative sources of cut back on discretionary spending. Sustained electricity. high prices remain arguably the greatest downside risk to global economic growth. But, the rise in commodity prices is far from a temporary spike. Recent events have served Unfortunately, the recent rise in prices has to accelerate a tightening in global oil markets also prompted a return to the populist rheto- that was already apparent long before the first ric common in the summer of 2008. Oil price quarter of 2011. speculators, big oil companies and the US Federal Reserve’s quantitative easing have all The good news: the global economy can been blamed for the jump in oil prices. withstand a gradual increase in energy prices But, there is a more fundamental driver at work: rising demand for energy from emerg- that allows time for consumers and businesses ing markets coupled with constrained sup- ply. Short-term gyrations aside, these factors to adjust. But, there are no easy answers to will continue to put upside pressure on crude the global energy crunch -- governments should refrain Energy from Continued on next page G8SUMMIT2012 | 13

promoting silver-bullet one-size-fits-all energy etary policy. The US Federal Reserve contin- solutions. ues to hold interest rates near zero and has undertaken two separate rounds of quantita- In particular, wind and solar power will eventu- tive easing in an effort to stimulate growth. In ally play a more central role in global electric- quantitative easing (QE), the central bank buys ity generation. But, alternatives are expensive US government bonds in an effort to boost and difficult to integrate with existing elec- their prices and keep yields from rising. This tricity distribution infrastructure. With public has helped to push interest rates in the US be- sector finances in many countries severely low those in many of its key trading partners, strained by fiscal stimulus measures undertak- making it more attractive to hold euros and en during the credit crisis and consumers still other currencies than dollars. reeling from a severe recession, the scale of in- vestment needed to make these technologies Like most other major commodities, oil is viable in the near-term is simply out of reach. priced in dollars and prices tend to rise when the dollar falls in value. There is no doubt that Instead, world leaders must recognize that prolonged weakness in the US dollar has been traditional fossil fuels must continue to play one factor in the rising price of crude oil over a central role in global energy supply for the the past few years. foreseeable future. Further gains in energy efficiency and greater use of clean-burning But currencies can’t explain all of oil’s historic natural gas will make it possible to meet the run-up. Consider that over the decade ended world’s energy needs in an environmentally March 31, 2011, the price of crude nearly tripled responsible and cost-effective way. in euro terms and jumped 230 percent priced in yen. And in the first quarter of 2011 alone, The Red Herrings crude oil prices jumped 17 percent priced in euros. While that’s not as dramatic as the 27 The Dollar Index measures the value of the US percent rise in Brent oil priced in dollar terms, dollar against a basket of six major global cur- consumers in the EU have certainly felt the rencies including the euro, the British pound, pain of higher prices even though the Euro- the Canadian dollar and the Japanese yen. pean Central Bank (ECB) has not followed Throughout much of early 2011, this widely the Fed in using quantitative easing to loosen watched indicator hovered near all-time lows. monetary conditions this year. There are several drivers of weakness in the An even more spurious rationale to explain the dollar but one of the most often-cited is mon- rise in global oil prices is to blame “Big Oil.” US giant Exxon Mobil, EU-based Royal Dutch Shell and China’s Petrochina have a combined market capitalization of nearly $1 trillion and are among the largest firms in the world but control less than 8 percent of the world’s oil production, far from a dominant share. In fact, the global oil market is among the most com- petitive and fragmented in the world – big oil companies don’t set the price of oil. The large profits generated by these major en- ergy companies in recent years have attracted plenty of less-than-favorable media coverage 14 | G8SUMMIT2012

and prompted demands from some corners lion barrels per day. And in 2010 alone, global that they be taxed on “windfall” profits. But demand jumped by 2.9 million barrels per day it’s important to remember that these same as the global economy bounced back from companies are plowing a large portion of their recession, the fastest rate of growth in two profits into exploration and development of decades. new sources of oil and natural gas production. With traditional onshore oil fields experiencing Emerging markets have been and will remain declining production, companies are increas- the most important drivers of global en- ingly turning to more complex and expensive- ergy consumption. Consider that from 1999 to-produce fields located in regions such as through 2009 total oil consumption from de- the deepwater or the vast oil sands of Canada. veloped countries in the Organization for Eco- Capital spending from the same three global nomic Cooperation and Development (OECD) giants was 70 percent higher in 2010 than it actually fell by more than 2.1 million barrels of was in 2006, just four years earlier. oil per day. Meanwhile, oil consumption from nations outside the OECD jumped by more If it weren’t for massive investment in these than 10 million barrels per day. The oil market’s new sources of energy output, global oil and fascination with week-to-week trends in US oil gas prices would be even higher than they are consumption and developed world inventories today. is fast becoming an anachronism as emerging markets become the driver of global supply Supply and Demand and demand. Speculators are perhaps most often blamed Demand trends in emerging markets are for rising oil prices. Proponents of this argu- driven by secular changes and are unlikely ment claim that the recent rally in crude oil to be reversed. As fast-growing emerging prices has absolutely no grounding in market markets like China and India become wealthier fundamentals and is solely caused by investors and disposable incomes grow it’s only natural allocating more money to tracking crude and that consumers would want to buy the same commodity indexes. sorts of goods as their peers in the developed world. That spells rising sales of discretionary Although this is a popular line of reasoning, items like cars and household appliances that such claims are just plain wrong for all but the support higher demand for energy. shortest of time frames: the rally in crude oil prices over the past few years has little to do “For more than a century, the with speculators and everything to do with US was the world’s largest car supply and demand. market; the fact that Chinese car sales have surpassed the There’s a popular myth that global oil demand has remained weak since the 2007-09 reces- US over the past two years sion. That couldn’t be further from the truth: represents an historic shift.” Global oil demand is expanding at the fastest pace in years. Sales of passenger cars in China hit a record According to the International Energy Agency high of 1.34 million vehicles per month at the (IEA) global oil demand hit 87.9 million barrels per day in 2010, an all-time high. Here’s some end of 2010. Despite the slowdown in eco- perspective: in 2007 and 2008, the last time global oil prices were near current elevated nomic growth since early 2010 and the gov- levels, global oil demand was closer to 86 mil- ernment’s efforts to tighten monetary policy, Chinese demand Energy for cars Continued on next page G8SUMMIT2012 | 15

remains robust. Similar trends are underway in fields have been in production for more than India and other emerging markets. These rap- 30 years. Many of those fields, including Mexi- idly growing economies will continue to push can giant Cantarell and China’s Daquing are global oil demand higher. In fact, by the end widely regarded as past their peak of produc- of this year, the global oil market is likely to be tion. Cantarell, in particular, has seen a rapid running at close to 90 million barrels of oil per decline in production since hitting a peak in day, yet another record high. 2004 and if Mexico doesn’t soon develop new oil fields there’s a real risk it will become a net Oil supply is a more complex matter. Oil supply importer of crude by the end of the decade. growth from outside the Organization of the Other giant fields, such as Saudi Arabia’s Gha- Petroleum Exporting Countries (OPEC) was war are thought capable of at least maintain- robust in 2010, expanding by 1.1 million bar- ing current production levels for some time to rels per day. Russian output jumped by about come. 250,000 barrels per day, while US production increased by 360,000 barrels per day. Most But, the ageing of the world’s largest oil analysts see global non-OPEC oil production fields is a concern as these giants account for growing close to 1 million barrels per day once roughly 60 percent of global production and again in 2011, historically an impressive growth two-thirds of reserves. And as oil fields age, it rate. becomes increasingly difficult to maintain, let alone grow production. But, this surge in oil production would be im- possible without rising investment in explora- According to the IEA, the average annual tion and production on the part of major en- decline rate for mature oil fields is more than ergy firms. And that increased spending is, in 5 percent. That means that producers are turn, only supported by higher energy prices. running on a treadmill: every year, companies must find and develop new fields just to offset “In recent years, there’s been the natural decline rate of the world’s base of resurgence in the popularity producing oil fields. of the so-called peak oil To accomplish this feat, companies are increas- theory. Contrary to popular ingly turning to regions such as the deepwater belief, peak oil does not mean and that spells a rapid rise in cost. Consider the world is literally running that producers are drilling in water two miles out of oil or that global oil (3.2 kilometers) deep and the longest deepwa- reserves have been depleted; ter wells are around 36,000 feet (11 kilometers) rather, peak oil refers to the in length. Oil produced from such reservoirs idea that the rate of global oil is under tremendous geologic pressures and production in terms of barrels temperatures, complicating production. The per day has hit a maximum.” difficulties faced bringing the 2010 Macondo oil spill in the Gulf of Mexico under control Global oil production has not yet peaked and offer a stark reminder of just how technically is unlikely to hit a wall over the next five years. complex a deepwater oil project can be. But, peak oil theorists are at least half correct: increasing global oil consumption is becoming Estimates of the cost of producing oil from more difficult, technologically complex and deepwater fields vary widely. And the industry expensive. World supplies of easy-to-produce has learned a great deal from the 2010 Gulf oil oil have peaked and that has major ramifica- spill; new equipment and operating protocols tions for prices. will make deepwater drilling even safer but have likely increased the cost hurdle for deep- Consider that 19 of the world’s 20 largest oil 16 | G8SUMMIT2012

water developments. Average crude oil prices first oil production in 2011 but was delayed above $70 to $80 per barrel are a good gen- for roughly two years as commodity prices eral estimate of the price required to incentive slumped in late 2008 and early 2009. There higher deepwater investment. was simply no point in adding to the nation’s production capacity with oil prices under $50 And OPEC nations aren’t immune to the rising per barrel. costs and complexities of crude oil production. Saudi Arabia plans to boost drilling activity “And despite record capital by 30 percent over the coming year. About spending from the big oil 60 percent of the planned increase will occur firms, smaller independent in Manifa, a field that eventually could add as much as 900,000 barrels per day of produc- producers and state-owned tion capacity. national oil companies Located in the shallows, Manifa was discov- (NOCs) in recent years, non- ered in the late 1950s. Scant development OPEC oil production simply work has occurred over the years because the field contains tough-to-refine heavy oil and hasn’t been keeping pace presents some daunting technical challenges. with growth in demand.” For example, in February 2011 Saudi Aramco announced it had set a record for the longest That makes OPEC spare capacity—oil produc- well ever drilled in the Kingdom, a 32,136-foot tion capacity that can be started quickly and well in the Manifa. maintained--the key to the global oil market. There are two possibilities: OPEC will dip into To develop the field, Saudi Arabia will build 27 its spare capacity to pump more crude oil or artificial islands in the Persian Gulf that will be global inventories will decline rapidly as de- connected by a 47-mile causeway. The Saudis mand continues to outstrip production. also plan to drill aggressively in an onshore portion of the field. Either possibility is bullish for oil prices. In the last quarter of 2010, global oil inventories con- The total cost: some $12 to $16 billion by the tracted rapidly as demand surged and OPEC time the field starts production in 2013. And remained disciplined in controlling its output. that’s only part of the story as Saudi Arabia In early 2011, crude oil inventories remained plans to invest as much as $40 billion in new well-supplied in the US, particularly in the key refineries and petrochemicals projects that will oil terminal at Cushing, Oklahoma. But, else- allow it to produce higher value refined prod- where around the developed world, invento- ucts from Manifa and other heavy oil reserves ries tightened sharply in the first quarter and in the Kingdom. Suffice it to say that Manifa were hovering near five-year seasonal lows. is a far more complex and expensive develop- ment than drilling a handful of simple vertical Meanwhile, OPEC spare capacity has fallen wells such as those originally used to produce many of the nation’s giant fields, including sharply, largely due to the loss of Libya’s 1.5 Ghawar. million bbl/day of oil exports. And don’t ex- Clearly, the Saudis know that Manifa only makes economic sense when oil prices are pect that output to come online again any- relatively high. The Manifa oil project was origi- nally slated to begin construction in 2009 with time soon – intense fighting has likely caused significant damage to production and export infrastructure. Saudi Arabia, Kuwait and the United Arab Emirates, among other major OPEC producers, have dipped into their spare capac- ity to Energy partially Continued on next page G8SUMMIT2012 | 17

offset declining Libyan exports. The result: by Manifa. the end of the first quarter of 2011, total OPEC spare capacity stood at less than 4 million bbl/ For example, seismic services involve the use day, the tightest since the last big run-up in oil of sound and pressure waves to map under- between 2005 and the middle of 2008. ground rock formations that could contain oil and natural gas. As with most energy-related While speculators can certainly influence services, seismic work has become increas- crude oil prices in the short-run, the long-term ingly complex and technologically advanced in drivers should be apparent: fast-growing de- recent years. mand and constrained supply. Rising oil prices are balancing the global market by incentiviz- Drilling deepwater wells is extraordinarily ing investment in more expensive and com- expensive. Day rates for the rig alone can top plex-to-produce oil fields and by dampening $600,000 per day, and a single well can take global demand growth for oil. 90 or more days to drill. In addition to the rig and crew, producers must pay services firms In the short-run, the early 2011 spike in oil to handle a host of tasks, including drilling, prices is far from a speculative bubble or a bet logging and testing the well and managing the on the fate of the US dollar. Rather, oil prices drilling fluid. Drilling alone can cost well north are simply rallying due to declining inventories of $1 million per day. of oil in storage and falling OPEC spare capac- ity. Oil prices must rally to cool global demand Given this expense, it’s no surprise that seismic growth and balance global supply and de- services account for roughly one-quarter of all mand. spending on exploration; high-quality seismic information enables producers to identify the Technology is the key to growing oil produc- areas in a basin that are most prospective for tion from complex fields such as those in the hydrocarbons. deepwater and complex developments such as 18 | G8SUMMIT2012

Trial and error is part of the energy business. seismic surveying. The company operates However, producers in the deepwater are will- two business lines: services, which accounts ing to invest in high-quality data to avoid dry for roughly 75 percent of overall revenue, and holes, or wells with no commercial value. equipment, which accounts the remaining 25 percent. And the need for seismic work doesn’t disap- pear the minute a new field is identified and The services division is broadly similar to drilled. Companies increasingly rely on seismic seismic services offered by Schlumberger and data to determine how best to develop a field Petroleum Geo-Services. But Veritas’ Sercel over time and exactly where to sink wells. division, which manufactures and sells seismic equipment, is a unique and highly profitable Oil services giant Schlumberger’s (NYSE: SLB) business line that boasts market share of 60 to WesternGeco subsidiary is among the world’s 65 percent. largest providers of seismic services. The seg- ment was a drag on the firm’s profits during The company’s Unite wireless system for on- the 2008 and 2009 commodity price collapse but looks to be on the cusp of a new wave of growth. And Schlumberger is known for its cutting– edge technology in seismic. The most modern and advanced seismic ships have equipment that can generate a high resolution 3D map of subsurface formations. And companies can also install seismic equipment that helps pro- ducers monitor the flow of oil and gas through a field as its produced over time, data known as four-dimensional (4D) seismic. Producers are willing to pay up for quality seismic data. Like WesternGeco, Norway-based Petroleum shore seismic shoots eliminates the need for Geo-Services provides higher-end seismic solutions to deepwater operators, a segment wires and cables connecting individual data of the market that offers superior returns. The company’s high-density 3-D data products collection devices, reducing setup times and account for 70 percent of new orders, and de- mand should continue to pick up as E&P firms making it easier to acquire data onshore. In target increasingly complex deepwater fields. the marine segment, the company’s advanced Brazil, home to some of the biggest offshore discoveries, accounts for 15 percent of the Sentinel seismic system is seeing strong Norwegian firm’s revenue. Petroleum Geo-Ser- vices has amassed one of the largest libraries growth as demand for advanced seismic data of 3-D seismic data in Brazil, giving it a leg up in this rapidly growing market. picks up. And France-based Compagnie Generale de And technology goes far beyond just the need Geophysique Veritas or CGG Veritas, is an- other pure-play on an improving market for to find new oil fields. Major oil field services companies including Schlumberger, Weather- ford, Baker Hughes and Halliburton perform a long list of crucial tasks surrounding the drill- ing and production of wells. Examples include man- Energy aging extreme Continued on next page G8SUMMIT2012 | 19

underground pressures, evaluating the produc- per year – even if a large percentage of new tivity of wells as they’re drilled, and managing car buyers were to choose electric and hybrid the drilling of horizontal wells. cars it would still take many years to shift the US vehicle fleet to electric. Increasingly, major services firms are also tak- ing on integrated drilling projects. Under such And such an assumption is unrealistic – sev- deals major producers contract with a ser- eral new models of hybrid, plug-in hybrid and vices firms to provide all or much of the work electric cars are due to be introduced in the needed to develop a particular field or group US over the next few years but even the most of wells. This can often include leasing drill- optimistic proponents are looking for mod- ing equipment, buying necessary equipment est growth. Electric and hybrid vehicles are such as pipes and wellheads and handling the still more expensive than traditional gasoline actual drilling of the wells. cars and current battery technology limits the range of electric vehicles. No Alternatives Since there’s no chance of replacing oil as The simple truth: there are no viable and cost- a transportation fuel in the near future, the effective alternatives to crude oil in the short key to minimizing energy costs is efficiency. term. Ultimately, electric cars or gasoline-elec- And, when it comes to efficiency, necessity tric hybrids could become commonplace as is the mother of invention: Simple economics passenger cars. And, as I’ll detail later, natural has historically driven energy efficiency and gas will have an increasing role to play as a conservation more than any environmental transportation fuel, particularly in commercial argument or government mandate. vehicles. But, even in developed markets like the US “One of the best measures of where hybrid vehicles have become more pop- a nation’s energy efficiency ular in recent years, oil’s dominance has hardly is energy intensity, a measure been dented. According to the US Energy In- of energy consumption per formation Administration (EIA), 97 percent of all energy used in the US transportation sector dollar of gross domestic was derived from crude oil in 2010. Natural gas product (GDP). Lower energy has made inroads in the US transit bus market in select cities like Washington DC but still ac- intensity implies greater counts for less than 9 percent of a market still energy efficiency.” dominated by diesel. And just under half of the nation’s commuter and transit rail systems Consider that between 1987 and 1997, a period run on electricity but that’s not as impressive when domestic energy prices generally fell, US as it might sound – commuter and transit rail energy intensity declined by about 11 percent . only accounts for about 0.2 percent of energy But energy prices climbed between 1998 and consumed in the US transportation market. 2008, and energy intensity declined by closer to 18 percent. Companies became more en- Making a major shift in a market the size of the ergy efficient and innovative because the cost US transportation sector takes time. Con- of using energy rose. sider that according to the US Department of Transportation (DOT), there are more than 255 Countries with few domestic resources of registered vehicles on the road in the US in- energy--Japan being a classic case--also tend cluding about 140 million passenger cars. The to be far more energy efficient than nations current market for new cars is about 14 million with plentiful domestic supply. Japan’s energy intensity is around 6,492 British thermal units (BTU) per US dollar of GDP compared to 8,841 20 | G8SUMMIT2012

BTUs in the US. sense that gasoline still dominates the local passenger car market. When energy prices rise, the cost of doing business increases; any firm that can reduce Despite the American preference for gasoline, those costs will enjoy higher profit mar- middle distillates are a slightly more impor- gins. And the higher energy prices head, the tant fuel globally, accounting for about 35 to cheaper and more valuable energy efficiency 40 percent of global oil use. Demand is also and conservation initiatives become. That’s the growing more quickly–global demand for mid- basic economic incentive that drives innova- dle distillates rose about 23 percent between tion. 1998 and 2008, compared to just 15 percent for light distillates. Energy efficiency can take many different forms. In the transportation industry, rising en- There are some good reasons for that trend. ergy prices have prompted consumers to show Diesel offers a fuel efficiency advantage of as a distinct preference for more fuel-efficient much as 40 percent over a comparable sized cars. gasoline engine–a significant edge in an era of generally high and rising energy prices. In the US, commercial vehicles, trucks and Meanwhile, diesel has always been the fuel trains tend to burn diesel. But only about 1 of choice for trucks and heavy equipment as to 2 percent of total passenger car sales are diesel engines offer better hauling and towing diesel. This is primarily due to historic reasons– power. the first small diesel cars introduced in the US market were of low quality and delivered In the passenger market, diesel engine perfor- inferior performance. In addition, the US has mance has improved markedly since the in- not offered the same level of tax breaks for troduction of advanced turbo direct injection buying diesel fuel that are offered in western (TDI) diesel cars. Some experts believe the European countries, reducing the relative cost most modern diesel engines actually offer per- benefits. In the US, light distillates, a category formance advantages over gasoline-powered dominated by gasoline, accounts for about cars. These factors suggest continued growth half of all oil-derived fuel consumed. Middle in diesel demand relative to other fuels. distillates, including diesel, accounts for about But the efficiency of gasoline powered en- one quarter of fuel consumed and only a tiny gines has also improved markedly in recent sliver of that is the passenger car market. years. For example, according to the EIA the average passenger car in the US managed just This is not the case in all regions of the world. 16 miles per gallon in 1980 compared to 22.6 In Western Europe close to half of all passen- mpg in 2008. The gains in fuel efficiency have ger vehicle sales are diesels in a strong year. also been dramatic in sport-utility vehicles and As for total fuel consumption, the relative light trucks where average fuel economy has importance of light and middle distillates are improved from about 12 mpg in 1980 to more reversed from the US case–about half of all oil- than 18 today. derived fuel consumed is middle distillate and just 20 to 25 percent is light distillate. “Another example of energy efficiency in the And in China, diesel is also an important trans- transportation sector is port fuel–about 40 percent of all oil consump- the rising popularity of tion is middle distillates compared to just 25 to 30 percent light distillates. However, China Energy is more like the US market than Europe in the Continued on next page G8SUMMIT2012 | 21

freight rail in countries like Resource Efficiency the US. A train can haul a ton of freight for more than 400 And there’s another form of efficiency that gets far less attention: resource efficiency. miles on a single gallon of diesel fuel, a feat that would As explained earlier, producing enough crude oil to meet global demand is becoming an be impossible with trucks. increasingly difficult and expensive process. And freight rail systems in That means that the global supply and de- many countries are far less mand balance for oil is tighter than it is for congested than highways – other energy-related commodities including traffic jams are one of the natural gas and coal. That also means that a world’s most unproductive British Thermal Unit (BTU) of energy produced usesof transportation fuels.” from natural gas or coal has generally been cheaper than the same BTU produced by us- And there’s a lot more to energy efficiency ing oil. For example when oil was trading at than more fuel-efficient cars and the greater $120/bbl in early 2011, a million BTUs of crude use of advanced diesel engines. Consider the oil cost about $19 while natural gas traded in manufacturing sector where companies have the US for less than $5 per million BTUs and at been spending on advanced factory automa- roughly twice that price in international mar- tion and control technologies that help to kets. It makes sense to substitute more plenti- conserve energy while boosting factory ef- ful commodities for oil where possible. ficiency. That trend has been a boon to global The rapid development of unconventional industrials such as US-based Honeywell and shale gas fields in the US and Canada has Switzerland’s ABB that manufacture and install revolutionized the North American market. such equipment. Two technologies have revolutionized the 22 | G8SUMMIT2012

production of oil and natural gas from shale This technology is far from a recent innova- fields in North America: horizontal drilling and tion; the energy industry has relied on this hydraulic fracturing. Horizontal drilling involves technology for over 50 years. But, a surge in sinking a vertical well to a particular depth and new LNG liquefaction projects in Asia, Africa then drilling sideways. By drilling horizontally, and the Middle East in recent years means that producers expose a larger portion of their importing countries now have more flexibility wells to the most productive parts of the field. in terms of obtaining their gas supplies. Oil and natural gas aren’t found in giant un- “Natural gas offers the derground caverns or lakes; these hydrocar- added attraction of being the bons are locked in the pores and crevices of a reservoir rock. The issue is that in unconven- cleanest of the fossil fuels, tional reserves, the pores aren’t well-connect- producing far less pollution ed, making it tough for the oil or gas to flow in the form sulfur dioxide, through the reservoir and into a producing nitrous oxides, mercury and, well. of course, carbon dioxide than either oil or coal. “ To remedy that problem, producers pump a The primary uses of gas worldwide include mixture of primarily water and sand into the electric power generation, industrial and field. The pressure literally cracks the reservoir manufacturing processes and residential heat- rock, providing paths through which hydrocar- ing. All of these will remain major markets for bons can flow. The sand, or proppant in indus- gas in coming years; in fact, gas is likely to be try parlance, props open the fissures created among the fastest growing major sources of during hydraulic fracturing. energy in the electric power industry given its environmental and cost advantages. Less than a decade ago, many analysts were predicting that the North American market And, the expansion of solar, wind and other would become increasingly reliant on imports intermittent alternative energy technologies of natural gas in the form liquefied natural gas would be impossible without gas. Integrating (LNG) to meet demand. But, the shale gas renewable energy sources into the electric revolution has resulted in a glut of gas across grid is a challenge, as the inevitable spikes and North America and depressed prices. lulls in solar and wind power generation must be offset with natural gas and other flexible Internationally, prices have tended to be higher power sources that can be fired up to ensure and in many countries natural gas is supplied that the supply of electricity meets demand. under long-term contracts indexed to oil. But Consider that the UK’s and EU’s largest wind wider global availability of LNG means that power installation, Whitelee Windfarm, com- gas is unlikely to become as dear as oil. prises 140 wind turbines that stand 70 meters What is LNG? When natural gas is cooled to tall (230 feet) and sport wind-turbine blades minus 260 degrees Fahrenheit at a liquefac- of 40 meters (130 feet) in diameter. The rated tion facility, it condenses into a liquid that’s maximum capacity of each wind turbine is roughly 1/600th its original size. In this form, 2,300 kilowatts (kw), so the farm’s total in- large amounts of natural gas can be safely stalled capacity is 322,000 kw, or 322 mega- transported overseas in specially designed watts (MW). ships. Re-gasification terminals warm the LNG to return it to its gaseous state before pipe- But, Energy lines transmit the product to end users. what really Continued on next page G8SUMMIT2012 | 23

ticked up because of the harsh winter. And consum- ers aren’t likely to reduce their electricity con- sumption when the wind dies down. counts is the load factor, or the ratio of power To offset generation relative to its capacity. For ex- the inherent ample, a 100 MW plant that produces 75 MW variability of of electricity in a given month would have a 75 facilities like percent load factor. Whitelee, utilities install Over the past two years, the highest average shadow capac- monthly load factor observed at Whitelee ity that can Windfarm was just shy of 40 percent. In other feed power to words, the entire facility produced just about the grid when 122 MW on average that month. To put that wind genera- into perspective, the smallest the smallest tion fails to meet demand. In the UK, spare coal-fired power plants in the developed world capacity would likely consist of natural gas- boast a maximum capacity of 400 to 500 MW fired power plants. and can operate at this level as long as the operator keeps feeding them coal. The amount of spare capacity required de- The power generated at Whitelee Windfarm pends on how windy it is outside and the also varies dramatically depending on the total amount of variable power capacity that’s month; in its worst 30-day period, the instal- installed. A small amount of renewable power lation operated at a load factor of 13 percent, isn’t difficult to integrate with a modern elec- generating less than 41 MW of electricity. On tricity grid; the peaks and lulls in power output a daily basis, these fluctuations are even more are easy to offset with existing gas-fired pronounced. plants. However, the greater the percentage of Weather patterns also don’t match consumer renewable energy capacity, the more of a chal- behavior; for example, Whitelee Windfarm lenge this become. posted its weakest monthly load factor in Feb- ruary 2010, a month where UK power demand An even bigger potential market for natural gas is the transportation sector. As outlined above, oil currently dominates global transpor- tation but there is scope for a shift. Globally there are about 7 million vehicles running on natural gas up from around 2 million in 2001 either in the form of LNG or compressed natu- ral gas (CNG). In some isolated markets, such as Argentina, natural gas has already assumed some importance as a transportation fuel but globally it remains a niche market. 24 | G8SUMMIT2012

It would take time for natural gas to make NGLs may not receive as much media atten- a dent in the market for passenger cars as tion as crude oil or natural gas, but they’re converting existing cars to burn gas can be ex- vital energy commodities. Ethane and propane pensive and infrastructure in the form of filling are commonly employed as petrochemical stations, pipelines and refineries is set up to feedstock. Ethane is used to make ethylene, handle gasoline and diesel, not CNG or LNG. while propane is used to manufacture propyl- ene--chemicals that form the building blocks But the market for commercial trucks and of various plastics. Oil refineries also use NGLs fleet vehicles offers a near term opportunity. to boost the octane rating of gasoline. Fleet vehicles like buses, taxis and waste col- lection trucks can be refueled from a handful Historically, petrochemicals producers have of centralized stations as they tend to travel used naphtha, a product derived from crude relatively short distances from their base of oil, to produce basic chemicals such as propyl- operations. And commercial freight vehicles ene and ethylene. But, due to rising production could be supported using a relatively small of NGLs from unconventional fields in places number of refilling stations placed along com- like North America chemicals manufacturers mon freight routes. like Eastman Chemical, Westlake Chemical and Dow are boosting their capacity to produce There has been significant talk about subsidiz- chemicals from the cheaper NGL feedstock. In ing the use of natural gas in freight and fleet effect, producers are substituting NGLs for oil applications in recent years, particularly in the in key industrial processes. US where low natural gas prices make it a par- ticularly attractive solution. One company that Rising oil prices are one should benefit is Clean Energy Fuels, a firm of the biggest risks facing that builds CNG and LNG refueling stations, the basic infrastructure that would be needed the world economy and to support further growth. the era of cheap oil is over thanks to booming global An even more obscure market is natural gas demand and constrained liquids (NGLs). Natural gas is composed pri- supplies. The rally is for real: marily of methane, a hydrocarbon consisting speculators and the dollar are of one carbon atom bound to four hydrogen far less important than the atoms (CH4). But raw natural gas produced simple forces of supply and from wells isn’t homogenous; methane typi- demand. There are no real, cally occurs with a variety of heavier hydrocar- cost-effective alternatives bons (NGLs) such as ethane (C2H6), propane to fossil fuels in the near or (C3H8) and butane (C4H10). Crude oil, water vapor, carbon dioxide, nitrogen and sulfur also intermediate term. mix with raw natural gas. The good news is that the global economy can The components of this mélange vary from adjust to higher prices over time and energy field to field. Some regions produce dry natu- efficiency and greater use of cleaner, cheaper ral gas, or gas that consists primarily of meth- natural gas can play a powerful roll in control- ane with little NGL content. In contrast, “wet” ling costs. fields such as the Eagle Ford of Texas and the Marcellus Shale in Appalachia also contain  large quantities of NGLs. G8SUMMIT2012 | 25



Nuclear Power in the Post-Fukushima World by Roger S. Conrad anti-nuclear Green Party gain unprecedented representation around the country. “There’s before and after Fukushima:” Those words from Autorite de Surete Germany’s 17 operating reactors currently Nucleaire Director Andre-Claude generate about 23 percent of the country’s Lacoste sum up the world’s nuclear power. Major utilities E.ON and RWE warn that power industry three months after an renewable energy can’t replace nuclear with historic earthquake and tsunami trig- the same degree of system reliability, a course gered the world’s second worst-ever nuclear the government now apparently favors. But accident. their pleas have largely fallen on deaf ears, as some 250,000 anti-nuclear Germans recently France’s Prime Minister Francois Fillon has gathered in four cities to demand immediate since launched a full-scale review of France’s shut downs of plants. nuclear power fleet, which supplies more than 80 percent of the country’s electricity. And the German opposition has apparently also government’s scrutiny extends to the new gen- spread over into France, where activists have eration of reactors as well, which are far-less swarmed to protest a plant built in 1978 and reliant on outside power sources to control an awaiting relicensing. And they’ve taken their accident and therefore much less vulnerable to case to the European Union as well, which is Fukushima-like conditions. ramping up its own scrutiny measures against nuclear plants. That, however, is about where global consen- sus begins and ends on nuclear power in the Supporting Nuclear wake of the radiation leaks at the six Japanese reactors. As was the case following the world’s Reaction to Fukushima elsewhere, however, last major nuclear accident—Chernobyl in the has been sharply different. Italy will delay 1980s—there’s been an outpouring of opposi- building a new generation of French reac- tion to all things nuclear. tors, pending future study. But rather than prescribe massive shutdowns, the response At the epicenter is Germany, where mounting in most nations has been to step up safety pressure forced Chancellor Angela Merkel’s measures to lessen the chances of devasta- Christian Democrat-led government to retreat tion from potential earthquakes. Relicensing of on plans to relicense the country’s existing existing plants continues to proceed and with plants past the 2022 shutdown date now very few exceptions, construction of a new enshrined in law. Merkel still paid a price at the generation of nuclear plants is going ahead. polls in recent elections, which saw the rabidly Nuclear power sta- NUCLEAR POWER Continued on next page G8SUMMIT2012 | 27

tions produce about a third of electricity in the And despite a major push from the Obama European Union overall, but supply some 80 administration to encourage nuclear building, percent of French power. As a result, French including $18.5 billion in loan guarantees, few consumers are far less reliant on either fossil companies have taken the bait. fuels or renewable energy and pay the sec- ond lowest prices for electricity in Europe, 36 On the other hand, the Obama Administration percent below the EU average. That’s a major and a majority of Americans continue to sup- reason a clear majority were set against aban- port increased use of nuclear power, despite doning nuclear power even in the first blush of the Fukushima accident. The US Nuclear Regu- the Fukushima accident. latory Commission itself has stepped up safety reviews of several plants around the country in Reflecting the popular will, President Nicolas response to Fukushima. But it’s also continued Sarkozy has consistently professed confidence to approve operating license extensions for in both France’s currently operating fleet and existing nuclear plants. its ability to build new plants. Speaking recent- ly to Electricite de France workers at the plant That includes approving a 20-year license ex- in the town of Gravelines in northern France, tension for the Vermont Yankee nuclear plant the president pledged France will “continue on March 25, just days after the accident in to invest” in the nuclear industry, and that Japan. Remarkably, Vermont Yankee is fiercely nuclear power is safe and essential for energy opposed by state government, which claims independence. He will host a meeting in June the right to veto NRC actions. That the state is meeting of world’s civil nuclear safety authori- controlled by Democrats—the president’s own ties. party—demonstrates the Obama Administra- tion’s resolve to continue supporting nuclear As for a planned European Union-wide testing energy in the US. of nuclear plants, Lacoste says the accident at Fukushima was a “massive event” that could Days later, the NRC granted environmental totally modify safety requirements at nuclear approval to new nuclear plants being built in installations. But he also says “there is no as- Georgia and South Carolina, saying they posed surance of a total convergence” between what no health risks to the surrounding communi- France will do and what the EU decides. That’s ties. That leaves just final approval, which is on a pretty clear indication that France will not go track for later this year. the same route as Germany. US Department of Energy Chairman Stephen No Three Mile Island Chu has indicated there will be no additional delay in the proceedings due to Fukushima, The US was at the forefront of the 1960s-70s stating investigation of the accident and nuclear building boom, only to pull up the approvals can proceed at the same time. To stakes following the 1978 accident at Three quote: “If you look at the process in which Mile Island in Pennsylvania. That event trig- the NRC approves going forward with con- gered mass cancellation of new nuclear plants struction projects and nuclear reactors, it’s a and dramatically increased the cost of those thoughtful process. It’s a multiyear process under construction. and because of its very nature, I think these things can proceed.” Today, anti-nuclear sentiment is still strong in many parts of the country and odds of If France’s continued support for nuclear pow- building new Greenfield facilities—i.e. places er is grounded in its dominance of the industry other than existing sites—are next to none. and the low rates it provides, US support is 28 | G8SUMMIT2012

based on desire for energy independence and That definitely includes California, which still to cut emissions of carbon dioxide over time. houses two nuclear reactors. One is San Ono- Legislation to regulate CO2 has stalled in Con- fre, which is located right on the Pacific Coast gress but new rules are being put in place by off the highway between Los Angeles and San the US Environmental Protection Agency. Diego. The other is Diablo Canyon, owned by Nuclear energy is the only realistic alternative PG&E and the plant not-too-subtly portrayed to the coal plants that generate more than 50 in the movie “The China Syndrome.” percent of US electricity. That’s because the average wind plant runs at about 20 percent However, the NRC and Obama Administration of its nameplate capacity, and the largest wind refused to close any US nuclear plants as Fu- farm has less than 200 megawatts of capacity. kushima struggled. And as for plant relicens- Nuclear reactors, in contrast, run all the time ing, the NRC has indicated it will stick to its and are typically more than five times as large. current multi-year approval process. They also take up far less space. There are still some battlegrounds over re- As of April 2011, 60 reactors at some 40 licensing. The Vermont Yankee case is one different sites have been cleared for license extensions. There are 19 others that have submitted applications, located at 11 facilities. The remaining plants are expected to file applications between now and 2017, and there’s no indication that approval won’t be forthcoming. and plant owner Entergy is taking the state The expectation is that operating to court. The Indian Point plant also owned costs at some reactors will rise. In fact, by Entergy is another. While not of the same John Rowe, CEO of the largest nuclear design as the Japanese reactors, that plant is producer Exelon (NYSE: EXC), stated located upriver from New York and has drawn he expects American regulators will the ire of local politicians. impose new safety requirements on nuclear plants that are likely to add As state approval is not required for relicens- “significant costs.” Particularly targeted could ing, shutdown looks extremely unlikely. Also, a be Exelon’s plants using a “boiling water” tsunami the size of the one that knocked out design like those at Fukushima. Those rising power at Fukushima Daiichi would fully wipe safety costs will hit earnings and may even out New York City long before it became a induce some owners to close facilities. problem for the plant. Nonetheless, the fact that people still want to shut down a plant that But with the NRC and Energy Department still contributes 33 percent of the City’s electric- supportive, not even those increased costs ity—and all of its lower cost power—is a strong should upset nuclear’s solid economics in the indication of how emotional this issue is in US. In fact, at more than 20 percent of de- parts of the US. mand—and still the cheapest source of basel- oad power in most areas—nuclear is basically irreplaceable in the US. Also note that most operating nuclear plants in the US have little or no debt attached. They’ve been paid for long ago. Aside from the Geor- NUCLEAR POWER Continued on next page G8SUMMIT2012 | 29

gia and South Carolina projects, new plant out further poisoning the air. And reliance on construction in the US is still a slow moving imported fossil fuels also opens up emerging trend. That even at existing sites, where lo- economies to inflation pressures. cal popular support is strongest and needed transmission infrastructure and logistical capa- That’s the major problem in Japan, which bility are already in place. remains supportive of nuclear despite the Fukushima accident as the only alternative to The Georgia project (lead operator South- intolerable reliance on imported fossil fuels. ern Company) and South Carolina project The country is experiencing that right now (SCANA) have plenty of both. So did, how- with the Fukushima Daiichi plant hobbled. And ever, the South Texas site where NRG Energy a planned overhaul of several other plants to had proposed a nuclear plant. This spring, the protect against future earthquakes and tsuna- company cancelled the project, blaming fallout mis will only make matters worse in summer from Fukushima and worries about potential cooling season. costs of new safety regulations. Before Fukushima, China and Rus- In North Carolina, Duke Energy will proceed sia were the two countries with the with its preliminary activity to build a new plant on an existing site. But the state legisla- biggest plans for nuclear power. ture has put on hold a plan for the company to That remains true today, though recover the estimated $11 billion cost automati- China did initially make statements cally in rates and as incurred, pending further that it would delay building until investigation. the Fukushima accident could be more fully investigated. The governor of Virginia remains very sup- According to the World Nuclear Association, portive of a potential new nuclear plant to be China’s current nuclear count is 13 plants in op- built by Dominion Resources in Louisa County. eration and 26 under construction. A total of But for the most part, it looks like Southern 34 have been approved by the State Council, and Scana will be the industry guinea pigs, as which sets energy policy. companies wait to see what their costs and challenges will be and what additional safety Current plants call for a 10-fold increase in the measures regulators require in the aftermath country’s nuclear power output to 400 giga- of Fukushima. watts by 2050, and the country is well on its way to meeting an intermediate term goal of Nuclear Growth 80 GW by 2020. Most nukes are on the south Fortunately, the global nuclear industry isn’t depending on the US to spur plant develop- ment, or for Germany to keep its nuclear plants running past 2022. Rather, opinion is solid that existing plants will keep running and new construction will proceed. One reason is CO2 regulation, as nuclear power produces no greenhouse gases. But many countries like China suffer from chronic air pollution problems, caused by increasing reliance on fossil fuels. Nuclear is the only way to generate the electricity they need with- 30 | G8SUMMIT2012

and east of the country, with a preponderance energy exports, particularly to Europe. Current on the coasts. building efforts include deals with India for fuel and cooperation agreements with Kazakh- The first plant was the two reactor Daya Bay stan. The country is also in effect competing complex serving Guangdong province, a with Lithuania to build three plants in the pressurized water reactor with a nameplate Baltic region, including two reactors using its capacity of 944 megawatts. But the country is VVER-1200 pressurized water reactors. now spearheading the effort in a wide range of designs. Russia’s primary nuclear producer Rosatom is for the first time looking for foreign part- Despite early lip service paid to anti-nuclear ners to take up to 49 percent ownership of a worries, reactor building got back on track in nuclear project. One candidate is Italian power May in China. The reactor building dome of giant Enel, which has been temporarily sty- unit 2 at the Yangjiang nuclear power plant in mied in its attempts to build a new generation China was installed, 16 days ahead of schedule. of Italian nuclear plants by fallout from the Meanwhile, the second ring of the containment Fukushima accident. A cooperation agreement vessel of unit 2 at the Haiyang plant was lifted has now been signed by Enel chief Fulvio into place. Conti and Boris Kovalchuk of Inter RAO UES to develop plans for the export and distribu- If China remains committed to nuclear energy, tion of a “significant proportion” of power Russia is doubly so. At a business confer- from two reactors. ence organized in Berlin by newspaper Sued- deutsche Zeitung following the Fukushima According to the World Nuclear accident, Russian Prime Minister Vladimir Putin Association, Russia’s current nuclear was quoted: “The German public does not like count is 31 operating reactors totaling the nuclear power industry for some reason, 21,743 megawatts. Overall capacity But I cannot understand what fuel you will take for heating. You do not want gas, you do is projected to grow more than 50 not develop the nuclear power industry, so you percent by 2015 and to at least double will heat with firewood? You will have to go to Siberia to buy the firewood there.” by 2020. That includes plans by Rosatom to build up to eight floating nuclear power plants by 2015. Speaking later at a meeting of the Valdai As in the US—where nuclear power’s operating International Discussion Club in the Black Sea rate has surged from under 60 percent to over resort of Sochi, the Prime Minister predicted 90 percent in the last 30 years—Russia has demand for energy sources will soar over the also seen a quantum leap in plant efficiency. next few years. Regarding the widespread Capacity factors averaged just 56 percent in view that renewable energy can pick up the the 1990s, but have since risen over 80 per- slack, he stated “You couldn’t transfer large cent, with a goal of 90 percent plus by 2015. electric power stations to wind energy, how- That’s a huge plus for nuclear power econom- ever much you wanted to. In the next few ics globally. decades, it will be impossible. Nuclear energy is the only real and powerful alternative to oil The Players and gas. Other approaches to meeting future energy demand are claptrap.” Producing 75 percent of France’s electricity Russia’s nuclear efforts are similar to those in from nuclear plants and the dominant owner fossil fuels: The country wants to enhance its of reactors in the UK as well (another country still supporting new NUCLEAR POWER plants), Electricite Continued on next page G8SUMMIT2012 | 31

de France has the furthest flung interests in will go up soon after, and about 30 more are nuclear power. The company has thus far been proposed. The construction timeline is roughly stymied in efforts to build plants in Italy and 50 months from first concrete to fuel loading, the US, but remains a major contender with a then six months to grid connection. long-term view. China is also building EPR reactors developed by France’s Areva. These are still larger reac- Other prominent nuclear power producers in tors, with a typical capacity of 1660 mega- Europe include EDF’s main French rival GDF watts. This is also the design favored by EDF Suez, Italy’s dominant electricity company globally, and is being used at the Gravellines Enel and Finland’s Fortum. Germany’s EON site in northern France. and RWE are also big producers, but appear doomed to shutter their reactors within the Other players include Russia’s Atomstroyex- next 10 years, if not sooner. port, developer of the VVER reactors being constructed in the Baltics. These reactors in- In the US, Exelon is by far the largest player corporate Finnish safety features and Siemens- in nuclear power, with all of its capacity sold Areva instrumentation and control systems. into the wholesale market. Low natural gas Russia’s Energoatom is responsible for mainte- prices in North America have pushed down nance. These are also being used in China. power prices in many markets, one reason for the company’s reluctance to build new nuclear China Huaneng Group, owner of Huaneng plants. But its operating rate remains superior Power, is the lead organization in a consortium and its operations soundly profitable. to build the demonstration Shidaowan HTR- PM reactor with China Nuclear Engineering & Other major players include Entergy—the sec- Construction Group (CNEC) and Tsinghua Uni- ond largest owner of US nuclear plants—Do- versity’s INET, which is the R&D leader. Finally, minion Resources, Duke Energy, First Energy fast neutron reactors FNRs) are seen by some and Southern Company. Constellation Energy, as the main technology by 2050. which operates five plants in the US, is in the process of merging with Exelon. Finally, uranium remains the primary fuel for nuclear power plants, providing a long-term Turning to manufacturers of new plants, the opportunity for companies that mine it safely. AP1000 is the design used by both Southern One of the premier plays: Canada’s Cameco, Company and SCANA in the US, and is widely whose Cigar Lake facility is on track to be- used throughout China. It’s the product of come one of the world’s most prolific resourc- Westinghouse, a unit of Toshiba. es. The AP1000’s typical capacity is 1250 mega- From an investment point of view, watts. It differs from the boiling water reactors the unfortunate events at Fukushi- and pressurized water reactors in that it does ma Daiichi in Japan have depressed not require outside power to cool the reactors. the value of all nuclear power play- In the event of an earthquake/tsunami event ers. The industry, however, is alive such as struck Japan this year, the reactors and well—and a profit opportunity would shut down without incident. The AP1000 is the major vehicle for China’s for those who recognize it. move to Generation III technology in nuclear energy. The country’s first four reactors with  the design are being built at Sanmen and Haiyang. At least eight more at four sites 32 | G8SUMMIT2012



  Too often our media focuses only on major disasters boxes, parks or on the street itself. Some still sleep in affecting millions of people in the poorest countries a house but often with ‘unsuitable’ adults. There are as of the world, and it is easy for us to feel helpless in the many 250,000 children living like this in Kenya, with face of such suffering. Yet when Victoria Ferguson first approximately 35,000 in Mombasa alone. visited Kenya in 2006, she was so moved by the plight of Mombasa’s street children that she resolved to help It is easy to turn away, to assume that the children in in whatever way she could. question are in some way to blame for their own situ- ation, but Glad’s House is founded on the belief that Vicky spent five months of her gap year as a volunteer children with no home belong to us all. working with the street children and youths during that time she met many inspirational social and youth How is Glad’s House helping these workers who are now part of the Glad’s House family. children? Vicky made a vow to work alongside them to establish a centre for Street Children and on her return home to the UK co-founded with her parents, Glad’s House, a charity working on-the-ground in Mombasa, Kenya to improve the lives of the city’s street children and youths, giving them the chance of a real childhood be- fore supporting them to become self-sufficient adults. Glad’s House shows it’s possible to make real changes one life at a time, proving that small amounts of money can make a big difference. By engaging the help of her parents, Cliff and Jan, now Glad’s House Chairman and Secretary, Victoria is able to split her time between Mombasa and the UK. Her father Cliff runs the UK operations, raising funds Glad’s House is building a community-based care and and delivering the resources required in Kenya. Both support facility for street children and Youths, as well Cliff and Jan make regular visits to see for themselves as for children from disadvantaged backgrounds, and the work that can be done with even limited resources. the local community. From a standing start in 2006, the charity has already touched the lives of countless street children. The project involves a process known as the 4-Rs: Res- cue, Rehabilitation, Re-socialization and Reintegration. Cliff says, “Glad’s House is a small charity with a nar- row focus. But this allows us to see real results in indi- Here at “the Base” children and youths are assisted in vidual children. Their lives can be transformed” re-joining the Kenyan school system or to begin voca- tional training programmes. It provides a vital sanctu- Victoria says, “The generosity we have experienced ary for children from a life of poverty, homelessness from people since establishing this charity never ceas- es to touch or amaze me. Through their support we are and crime. Children and able to achieve so much and make a difference to so youths from the surround- many children’s lives.” ing neighbourhood are also given the chance to access Who are the Street Children? education, arts, sports and medical aid. They are children from diverse backgrounds, aged be- The children visit the cen- tween five and eighteen, who have been orphaned, tre on a daily basis and are abandoned by their parents or fled their home and are given food, healthcare and forced to live without any care or protection on the counselling. They are also streets. Their lives are a daily struggle to find food and helped to find and reunite shelter, often funded by petty crime or prostitution. with their families. Many are addicted to glue, a substance which allevi- ates their hunger and is cheaper than food. Frequently Existing projects the children band together, as children do all over the world, providing help and support for each other as One of the ways Glad’s they have no home, no school, no family other than House currently works to their friends on the street. improve street children’s lives is through sport. Partnering with MOYO (Mom- Street children live in abandoned buildings, cardboard basa Olympic Youth Organisation) – established by a

former Kenyan Olympic athlete, Fred ‘Bokey’ Achola The programme will: – the charity provides sports kit and funding for box- Rescue, rehabilitate, re-socialise and reintegrate ing, soccer, basketball, volleyball, tae kwando and oc- abandoned and vulnerable children back into the casional rugby teams. The children are supported and family unit and community given the motivation to stay away from drugs and Increase community understanding and aware- crime while enjoying a very real break from their day- ness of the rights of children as a way of stemming to-day existence. the flow of children on to the streets The charity has also established local businesses – a Increase vulnerable children’s access to basic edu- cyber café, a matatu (Kenyan transport system), bi- cation and vocational training opportunities cycle shop, cobblers, sports shop and carpentry shop Increase vulnerable children’s access to basic – all of which provide employment opportunities for health services and information the local community and children moving away from Establish a sustainable child-care and support the street. model for street children, which could be scaled up and replicated in other communities They have also created an innovative programme in association with Vipingo Ridge Golf Resort, where 44 When completed the centre will incorporate offices, young people have been trained as caddies and now a kitchen, plus a dining hall to feed our children and work full-time on the course. This project was partially youths, a few ‘emergency’ bedrooms, a dispensary/ funded by the European Tour and fully supported by medical centre and classrooms. The latter two would the European Tour Caddies Association. be used by current street children, ex street children and members of the community of Magongo. A personal story by Victoria Ferguson Glad’s House has been slowly growing over the past “Nicholas Karani” five years and there have been some very special mo- ments along the way. These include being the nomi- When I started in care work one nated charity for Sky TV’s ‘Soccer AM’ for two sea- of the first rules I was told was sons, the Chelsea Legends playing 5 a side football in that I couldn’t have favourites... Spitalfields Market for Glad’s House and the Caddie then I met Nicolas Karani, and I Programme being supported by The European Tour. like everyone else who met him But the real highlight has to be seeing Glad’s House instantly fell under his spell! Karani as he was known, grow into a pioneering and high quality project for the was a very special human being, he had an energy street children and youth in Mombasa and, of course, around him that was infectious and even the most mis- street children and youths leaving the street and suc- erable person in the world would be melted by Karani’s cessfully standing on their own two feet. charm. Karani was tiny for his age, he had been on the street from a very young age and mal-nourishment If reading about the work and aspirations of Glad’s plus too much glue had stunted his growth and addled House has left you feeling inspired to make a donation, his brain, but this didn’t matter to anyone around him. no matter how small, please help by visiting www. He was your classic street boy; dirty, always with a glue gladshouse.com, it’s easy to make a difference, one life bottle in hand, a free spirit, a survivor. However, like at a time. most children, the street got the better of him in the end. If Karani had had a different start in life I have no doubt he would have gone far, but he didn’t, he was, from too young an age made to sniff glue, so he wasn’t afraid at night and so that the hunger in his stomach wasn’t the overpowering sensation in his life. Karani was a victim of his situation and like all of his peers did what he had to do to try and survive on a daily ba- sis. For me Karani is the personification of why Glad’s House exists and why it is so important we offer sup- port for children on the street. We need to stop the Ka- ranis of this world dying for no reason. No child should have to live on the street and no child should die on the street. In November 2010 Victoria won the ‘Ultimate Interna- Where Small donations make tional Angel’ category at The Cosmopolitan Ultimate a BIG difference! Women of the Year Awards. The annual awards, spon- sored by Avon, celebrate the remarkable stories of the Registered UK Charity No. 1115744 nation’s ultimate real-life women and inspiring celebri- Registered Kenyan NGO No. ties. OP.218/051/2010/0119/6304 The Future The main focus now is to build a proper community centre providing high quality services for both children and youth.

Better skin from outer space by Dr. Aaron Barson always topical in nature. Looming problems with using surface nutrients and vitamins to Since time immemorial the quest for beauty improve the skin lies in the construction of has been a constant in all societies of which the epidermis or outer layer of your skin. The we have written records. This quest for skin outer layer consists of skin cell remnants called beauty has been a goal that covers all periods keratinocytes. These are the cellular remains of time, all races and both sexes. Over thou- of the epidermal cells after they have under- sands of years many products have been used gone internal conversion to a protein called to enhance the skin, especially in women. In keratin. This keratin substance is very resistant our present-day, cosmetic enhancements to to mechanical stress and chemical attack. Is the female face and body have reached the this layer of dead skin cells that armor plates point where it is a major industry. There is also your skin against the many assaults from no lack of interest in homebrewed substances the outside world. It is also the reason that that hold the promise of eternal youth and substances applied topically do not work as beauty. With all of the emphasis on enhancing effectively as one might desire. The kerati- natural beauty through the use of substances nocyte layer of the epidermis is a wonderful and materials not manufactured by the body, barrier that protects us but also does not allow we now have many thousands of products for much nutrition to reach the skin through purporting to improve beauty and skin health. the surface. What is lacking in this quest for eternal youth is the use of internal treatments to enhance It may sound like science fiction, but new skin beauty. nutritionals developed for the US space pro- gram may hold the secret to younger-looking It seems that most efforts at improving the skin. A nutritional combination of superfruits skin’s condition and appearance are almost was created to help protect American as-

tronauts against radiation exposure in space Antioxidants in the superfruits attach them- flight, but has been found to have amazing selves to ROS and neutralize them before they properties that can help smooth out wrinkles can cause damage. Dr Barson thinks that the and blemishes. On the radiation protec- skin may be the tissue most helped by reduc- tion side, a trial carried out at the University ing ROS and oxidative stress because it is the of Pittsburgh last year and published in the first body tissue (it’s on the outside of us) to Radiation Research Journal showed that the be exposed to the environmental stressors of NASA nutritional supplements high level of an- life. The most common example is the skins tioxidants provided strong protection against exposure to ultraviolet light in sunlight. The oxidative stress. skin is the only tissue that “sees” this exposure because it is on the outside of us. Dr Barsons Oxidative stress is the end result of radiation study shows that the skin greatly benefits passing through the water in your body and is from a reduction in this oxidative stress and responsible for everything from aging skin to the skin can heal itself if the oxidative stress is how long we might live. In a recent skin study reduced. “This is not a facelift in a bottle, but carried out at Surface Medical Spas in Utah, it is extremely powerful,” says Dr Barson. “We the NASA supplement was shown to reduce have never seen anything as powerful as this wrinkles by almost a fifth, UV spots by almost as far as its effect on the skin and the different a third and red spots by almost half in only parameters of damage by which we evaluate three months. Dr Aaron Barson, the cosmetic it. physician that carried out this unique study, believes that reactive oxygen species (ROS) I believe the future of skin care will be oral created by both radiation exposure and other rather than topical. ”The drink contains the natural processes, can harm the body in many juice of five different super fruits – cupuaçu, ways. These reactive oxygen molecules or açaí, acerola, prickly pear and yumberry – “free radicals” can create cell damage that which as well as being high in antioxidants, has been linked to everything from cancer to contain phytochemicals, vitamins, flavonoids, Alzheimer’s disease. “Think of them as little glyconutrients and essential oils. The “Nasa Pac-men taking bites out of molecules that Quintet” is also a vital ingredient, a complex are essential for cells to function,” says Dr extract of grape, green tea, pomegranate, veg- Aaron Barson, “This is how radiation exposure etables (broccoli and spinach) and wild berries kills: the body is overwhelmed by ROS that (blackberry, cranberry, blueberry and straw- cause cellular damage that the body can’t berry. Dr Barsons research is ongoing. repair.” While the precise mechanism is not known, Dr Barson says skin condition improves because the large quantities of antioxidants in the NASA supplement can ward off oxidative stress.

to develop energy storing batteries and an advanced grid system to move renewable energy where it is most used. Additionally, the Obama Administration has created a website to track these efforts, recovery.org. Barack Obama President Obama directed the Department of Transportation to establish higher fuel In 2008, history was made when Barack economy standards for Model Year 2011 and Obama was elected as the first African beyond cars and trucks, enabling them to American President of the United States get better fuel mileage. This direction was of America. This will be the fourth G8 made in order to prompt transportation Summit and his first as the host president. companies to create more innovative energy In March 2012 he changed the location of saving products. Mr. Obama also issued a the G8 Summit from his hometown of Chicago, memorandum to the Department of Energy Illinois to the Camp David in Maryland. to develop tougher energy efficiency standards for household appliances including He sponsored State Children’s Health dishwashers, refrigerators and stoves. Insurance Program which will help 4 million more children, including immigrants, receive In 2009, revealed a program to developing healthcare with no waiting period. He renewable energy projects on the waters of issued orders to suspend all proceedings at our Outer Continental Shelf. These projects Guantanamo Bay detention camp in Cuba and include renewable energy that produces have it closed within the year. electricity from wind, wave and ocean currents. USA on the Horizon Barack Obama is currently campaigning for his second term as President of the United States. He will be running against the whichever Republican candidate wins GOP nomination, which as of May 2012 looks to be former Massachusetts Govenor, Mitt Romney. Environmental BARACK OBAMA HISTORY Direction 1961 Born in Honolulu, Hawaii. This will be President Obama’s fourth attendance at the G8 Summit. During his 1985 Director of the Developing current term, President Obama has already Communities Project. made several environmentally sound initiatives. 1991 Receives Juris Doctor magna cum The American Recovery and Reinvestment Act laude from Harvard Law School.1992 of 2009 is a stimulus package that was signed Professor of constitutional law at the into law by President Obama on February University of Chicago Law School. 17th, 2009. This stimulus package includes approximately $60 billion in clean energy 1997 Senator of Illinois. investments including low income home weatherization, state and local renewable 2005 United States Senator. energy and energy efficiency efforts, grants 2008 Elected President of the United States. 2011 Ordered the military operation that resulted in the death of Osama bin Laden. 38 | G8SUMMIT2012



The United States of America The United States of America is known as a melting pot of cultures and ethnicities. The United States is the largest importer Known as the land of opportunity, of goods, with vehicles as the number one such diversity has sprouted many import, and is the third largest exporter in the innovative ideas like the invention of world, with electrical machinery at the top of the list. Canada, China, Mexico, Japan and the telephone, motion pictures and Germany are the United States major trading motor vehicles, just to name a few. partners and it ranks at eighth in nominal GDP per capita. The United States has fifty metropolitan areas with populations greater than 1 million. The Currently, United States is experiencing the overall growth rate is 0.89%, compared to worst economic decline since The Great 0.16% in the European Union. Depression which began in 1929. Over the past several years, the housing market has Operating under a constitutional federal hit record lows, unemployment rates have republic, the United States is made up of 50 reached record highs and consumer spending states and a federal district. It was structured has been weary. Due to these poor conditions, as a democracy regulated by checks many foreign trading partners with the U.S. and balances set up by the United States are being deeply affected. Constitution. Economy at a In what may be a bold attempt to breathe Glance life back into the U.S. economy in February 2009, President Obama signed the American Recovery and Reinvestment Act. The act The United States has what is considered a is designed save and create over three capitalist economy comprised of rich natural million jobs, increase college affordability resources and the labor of converting those for students, create a new infrastructure and natural resources into goods and technologies. provide tax credits and tax cuts to over 129 It is the world’s largest national economy. million working households. This $787 billion stimulus package could be the investment America needs for a brighter future. 40 | G8SUMMIT2012

United States of America - continued Global Efforts UNITED STATES SNAPSHOT The United States has been heavily involved in Official Name: bringing humanitarian aid to countries world- United States of America wide through federal government agencies like USAID. This agency focuses on providing Land Area: humanitarian efforts to Sub-Saharan Africa, 3,794,101 sq. miles (9,826,675 sq. kilometers) Asia, Latin America and the Caribbean, Europe and Eurasia and the Middle East. The Population: USAID is committed to providing aid by way 313,533,000 of economic growth, agriculture and trade, global health and conflict prevention and Capital: humanitarian assistance. Washington, D.C. More recent humanitarian efforts by the USAID Government: is being focused on aid for the pandemic Constitutional Republic swine flu, the global fight against the HIV/ AIDS pandemic, the global food crisis caused Head of State: by higher food prices, and addressing the President Barack Obama needs of conflict affected areas of Somalia. The USAID counts on continuous charitable Principal Language: donations of money, food and goods that can English go to various countries. Life Expectancy: Also on the Global spectrum, through the 75 Years (male) Global Climate Change Policy the United 80 Years (female) States hopes to reduce greenhouse gasses by 18% over the next decade. The policy, along Currency: with other policies that may come into affect United States Dollar soon, helps continue the United States’ role in leading support for research regarding climate GDP Per Capita (US$): change, resources for in science and technology $48,386 and working with different institutions to find UNITED STATES HISTORY solutions to the climate crisis. 1917 Enters World War I. 1920 Women gain right to vote. 1929 Stock market crashes. Great Depression begins. 1947 Enters World War II after attack on Pearl Harbor. 1965 Enters Vietnam War. 1969 Neil Armstrong is first person to walk on moon. 1974 President Nixon is investigated for Watergate scandal and resigns. 1991 Enters Gulf War. 2001 September 11 attacks. 2003 Invades Iraq. 2008 Barrack Obama first black American elected President of United States. G8SUMMIT2012 | 41

encouraging sustainable water management, and taking action to help our wildlife at home and internationally. In their manifesto, the Conservatives promised “to be the greenest government in our history.” David Cameron The Conservatives have also outlined plans to modernise the national grid to deliver power On 11 May 2010, following the more cheaply, subsidise home insulation resignation of Gordon Brown projects, and make more use of green as Prime Minister and on his technologies including electric cars and off- recommendation, Queen shore windfarms. Elizabeth II invited Cameron to form a government. At Publishing his party’s “Plan for a Low Carbon age 43, Cameron became the youngest British Economy,” Mr Cameron said that changes in Prime Minister since Lord Liverpool, who was the way that Britain generates, distributes appointed in 1812. Mr. Cameron is a descendant and consumes electricity will save families of King William IV and was born into a family significant amounts of money as well as with both wealth and an aristocratic pedigree. benefiting the environment. There is an urgent need to improve the protection of their marine environment, as many of their fish stocks have been over- exploited. The Conservatives vow to fight for wholesale reform of the Common Fisheries Policy to encourage sustainable practices, give communities a greater say over the future of their fishing industries, and bring an end to the scandal of fish discards. In his first address outside 10 Downing Street, DAVID CAMERON HISTORY he announced his intention to form a coalition government, the first since the Second World 1988 Conservative research department War, with the Liberal Democrats. Cameron 1992 Special advisor, Treasury and Home outlined how he intended to “put aside party Office differences and work hard for the common 1994 Head of corporate affairs, Carlton good and for the national interest.” As one of Communications his first moves Cameron appointed Nick Clegg, 1996 Married Samantha Sheffield the Liberal Democratic leader, as Deputy 2003 Shadow deputy leader of the Prime Minister. Commons 2004 Conservative party deputy chairman Environmental 2005 Leader of the opposition Direction 2010 Apppointed Prime Minister of United Kingdom The Conservative Government will make Britain greener by tackling climate change and protecting and enhancing the environment. They have pledged to improve Britain’s environment by working towards zero waste, providing incentives to recycle, 42 | G8SUMMIT2012



United Kingdom service industry has developed considerably, establishing about 73% of the UK’s GDP. The United Kingdom is composed of four remarkable regions From London’s Big Ben Clock Tower to the which include Great Britain, mysterious astral Stonehenge the United Northern Ireland, Isle of Man Kingdom is known for some of the most and The Channel Islands. With recognizable landmarks in the world. Boasting its distinct landscape made up over 32 million tourists in 2006 alone, tourism of breathtaking lakes, rolling hills, picturesque has always been a very lucrative business for shorelines and dense forests echoing a nation’s the United Kingdom. In fact, both international history, it’s no wonder that for its small size and domestic tourists contribute billions of the United Kingdom boasts one of the most pounds each year towards the UK’s economy. culturally diverse and compact populations in Europe. The government is made up of a parliamentary High export revenues can be attributed to democracy and is a member of the European the chemical industry and United Kingdom Union and Commonwealth of Nations. The is the leader in financial, pharmaceutical, United Kingdom is also a constitutional software and defense industries. Some other monarchy with Her Majesty Queen Elizabeth II profitable endeavors involve revenues from as head of state. coal reserves, North Sea oil and natural gas with their primary trading partners including Economy at a many other European Union countries as well Glance as the United States. The United Kingdom’s economy is made Global Efforts up of the economies of England, Scotland, Wales and Northern Ireland. As leaders in the The United Kingdom is constantly looking for industrial revolution they have always had a ways to stay deeply involved in the growth and strong hold on economic development and the welfare of the world. Two of the more pressing issues involve the development of Africa and the World’s climate crisis. 44 | G8SUMMIT2012

United Kingdom - continued Keen interest has been given regarding the UNITED KINGDOM SNAPSHOT future of Africa by backing a debt relief agreement. The agreement details that large Official Name: retailers in the United Kingdom will make United Kingdom of Great Britain and strong efforts to use their buying power to Northern Ireland assist the developing countries in the world. Land Area: Already, a million quality fruits and vegetables 94,060 sq. miles (243,610 sq kilometers) are being sold in the UK that are grown from Population: these developing countries. This is just a start 62,262,000 in the hope to pave a path for big business Capital: to assist these evolving countries not only London through aid, but through agricultural trade as well. Active involvement of the United Kingdom Government: in reducing planetary greenhouse gas Constitutional Monarchy emissions is one of the central concerns Head of State: being concentrated on in recent years. They Queen Elizabeth II are focusing efforts to make their mark Prime Minister: through the many environmental projects David Cameron and initiatives laid down by the government. Principal Language: UK Scientist and environmental advisors to English the government are studying the positive Life Expectancy: effects of biofuels replacing petroleum based 77 Years (men); fuels versus the negative effects of biofuel 82 Years (women) production. This is to ensure that the loss of Currency: plant-life does not outweigh the benefits of British Pound our removed dependence on fossil fuels. This GDP Per Capita(US$): is a clear demonstration of the high character $38,592 in leadership in the United Kingdom, to be responsible in its actions by not simply following UNITED KINGDOM HISTORY guidelines of the established consensus.  1914 Enters World War I. 1939 Enters World War II. 1952 Elizabeth II becomes Queen. 1969 Capital punishment abolished. 1979 Margaret Thatcher becomes first woman prime minister. 1994 Channel Tunnel links Britain back to European continent. 2004 English population reaches 50 million. 2M0in10ist er.Gordon Brown resigns as Prime G8SUMMIT2012 | 45

such as the Bureya Dam and the Boguchany Dam, as well as the restoration of the nuclear industry of Russia, with some 1 trillion rubles ($42.7 billion) allocated from the federal budget to nuclear power and industry development before 2015. A large number of nuclear power stations and units are currently being constructed by the state corporation Rosatom in Russia and abroad. Vladimir Putin Russia on the Horizon Vladimir Putin was re-elected President of Russia since May 7, 2012. Putin On his first day as President, Putin issued 14 previously served as President from Presidential decrees, including a lengthy one 2000 to 2008 and as Prime Minister of stating wide-ranging goals for the Russian Russia from 1999 to 2000, and again economy. Other decrees concerned education, from 2008 to 2012. Putin also serves housing, skilled-labor training, relations with as chairman of United Russia and Chairman of the European Union, the defense industry, the Council of Ministers of the Union of Russia inter-ethnic relations, and other policy areas and Belarus. dealt with in Putin’s programme articles issued during the Presidential campaign. VLADIMIR PUTIN HISTORY Because of constitutionally mandated term 1994 First deputy head of St. Petersburg limits, Putin was ineligible to run for a third administration consecutive presidential term. After his successor Dmitry Medvedev won the 2008 1998 Head of the FSB presidential election, Putin was nominated by Medvedev to be Russia’s Prime Minister. In 1999 Appointed as one of Boris Yeltsin’s September 2011, Putin and Medvedev agreed Deputy Prime Ministers he should seek a third, non-consecutive term in the 2012 presidential election, which he won. 1999 Appointed Acting President upon Boris Yeltsin surprise resignation. Putin is skipping G8 this year and send his Prime Minister Demitri Medvedev in his place. 2000 Inaugurated President of Russia The Russian leader told Obama by phone that he is unable to join the other leaders of the 2004 Re-elected President with a 71% vote G8 leaders on May 18-19 because he needs to finish work setting up his new Cabinet. 2008 Became Dmitry Medvedev’s Prime Minister Environmental Direction 2012 Re-elected President of Russia for a non-consecutive third term Putin also presided over resuming the construction of major hydropower plants, 46 | G8SUMMIT2012

all levels of government. Mr. Medvedev has also stated that more severe penalties need to be put into action for businesses who are heavy polluters. Currently, the cost of an environmental fine is many times less the cost of investing in meeting local environmental guidelines. Though Russia has also experienced loss in the Global economic crisis as of late, efforts are still being made to invest into such environmental endeavors. Demitri Medvedev Russia on the Horizon Dmitry Medvedev was the third President in the history of the During his presidency Medvedev was the Russian Federation and is not iconic face for the Russian Federation. At just the current Prime Minister 45-years-old, he brought a new and youthful for newly elected Presdient outlook to this position of President and vowed Vlademir Putin. Though never to be his own man and take his own stances on previously holding an elected office, he has both foreign and domestic policy. stood strong in the face of any adversity that has come his way. Prime Minister Medvedev is In the past Mr. Medvedev has said that he quickly becoming known for his charismatic wishes to bring reform to the judicial and nature and his ability to take a new stance legislative branches, resolving any lingering against corruption. corruption and bringing a true separation between the two governing bodies. Russian Environmental leaders have implemented needed reform Direction for many years and he has proven that he will continue to do so to enable Russia to continue in its growing prosperity as the Prime Minister. During his first term of then President Vladimir DEMITRI MEDVEDEV HISTORY Putin, the duties of environmental governance was shifted to the Natural Resources Industry. 1990 PHD in private law from Leningrad This was an attempt to centralize the direction State University. and lead to a more stable approach to 1998 Member of Board of Directors of environmental policy making. However, all Bratskiy LPK. of the power for environmental control and 1999 Given top Moscow government natural resource policy making was moved position by Vladmir Putin. to this same ministry, placing the supervision 2002 Two time chair of Gazprom’s Board of of how the resources are spent and then Directors. protected into one governing body. 2005 Deputy Prime Minister of Russia. 2008 Elected President of Russia. Prime Minister Medvedev and President Putin 2012 Appointed Prime Minister have both spoken of a greener Russia. Both men have stated that the interests of the environment should now be of importance to G8SUMMIT2012 | 47

Russian Federation over 12 % in 1999 and the average household monthly income is up nearly a remarkable Russia is the largest country in the 800% over the past 10 years. The GDP is firmly world in overall area, almost twice situated in the worlds top ten. The Russian the size of the United States. The government acknowledges improvement still geography is quite diverse with needs to be made, but clearly they are headed tundra, forests and deserts. There is in the right direction. rich heritage rooted in its culture, one which celebrates both its past and future. Times are much better for this nation who While economic growth is apparent, it has struggled so much in the prior decade. The been centered mostly near Moscow. The other government is considerably more stable and parts of the country fall significantly behind in Vlademir Putin who returns to the office of these numbers. However, the middle income President, looks to lead the country down a class has risen from about 8 million of the proven path of success; where overall growth population in 2000 to over 55 million today. is becoming a yearly achievement. Russia has weathered the bad times and works its way In December 2011, Russia finally joined World towards beginning a new prosperous era. Trade Organisation, allowing it a greater access to overseas markets. Some analysts Economy at a estimate that WTO membership could bring Glance the Russian economy a bounce of up to 3 per cent annually. Unlike other countries in recent years, Russia Russia is rich in natural resources that are has experienced unprecedented economic increasingly in demand. The country ranks first growth based mainly on the rise of oil overall in the amount of natural gas reserves costs, increased government stability and and ranks second in stored coal reserves and more domestic spending. Russia has seen eighth in oil reserves. Russia is a large importer significant improvements during this nine year of foodstuffs. The government is concerned period. Citizens below the poverty level are with its dependence on importer foods and at 14% down from a staggering 40% in 1998, hopes to increase size and production of the the unemployment rate is near 6% down from domestic agricultural sector. 48 | G8SUMMIT2012