The world's increasing need for oil and gas energy.

The world's increasing need for energy poses complex challenges for consuming and producing nations alike. Access to reliable, affordable supplies of energy is a critical factor in helping to improve the living standards of people in the developing world.

To improve worldwide energy security the United States and other nations need sound, cooperative energy policies that address a wide array of political, economic and environmental aspects. With more than 60 percent of the world's proven oil and gas reserves owned by governments and state enterprises, it is more important than ever for governments and industry to work together to balance supply with demand.

In our economic and development strategies, we must focus on initiatives that will increase and diversify our supplies—including alternative and renewable energy—and use existing resources more efficiently.
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Nevertheless, fossil fuels will continue to provide the majority of the world's energy supplies for decades to come. Even under the most aggressive climate policy scenario presented by the International Energy Agency, fossil fuels are still expected to contribute at least 50 percent of the world's energy supplies in 2035. That is why we are tapping into new sources of hydrocarbons in hard-to-reach areas like oil sands and making large investments in shale gas deposits. In addition, we continue working to improve efficiency—the most effective resource for energy security—both for ourselves and for others. At Chevron, we have improved our own energy efficiency by 34 percent since 1992, enabling us to use much less energy today. Through CES, we are assisting customers in government and private sectors to do the same. We continue to invest our resources and expertise to find more efficient ways to deliver the energy the world needs for economic growth.

Governments are critical participants in stimulating the development and deployment of new energy technologies. Their most critical role will be to set and maintain a policy framework that promotes energy and environmental security.

That strategy should embrace new areas of development that are becoming available as a result of our increased investments and advancing technology. The delivery of new energy supplies to market remains hindered by restricted access and lengthy regulatory processes both in the United States and abroad. Governments should move proactively to address these issues.

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