Global DependenceOn Oil:

An Addiction that Threatens World Peace and Security

• Why We Should Strive for Energy Independence• What Role Israel Can Play to Help Us

Neil B. GoldsteinExecutive Vice PresidentEnergy Alternatives for the 21st Century, Inc (EA-21)The Israel Energy Partnership, Inc (TIEP)

www.ea-21.org

The World Consumes roughly 85 million barrels

of oil a day - - even in the midst of a global recession !

• At the current price of about $80 a barrel, worldwide spending for oil amounts to almost 2.5 trillion dollars a year.

• At the 2007 price of $147 a barrel it represented an enormous tax on all of us; one that made it impossible for many people to simultaneously pay their mortgages and one that helped lead to the economic collapse.

Who Gets That Money – OPEC Sells 30 million barrels a day

= $2.4 billion per day from the industrialized world.

Non-OPEC producers of note (producing over 1 million bbl/day) include: Russia (9.9 million bbl/day), U.S. (8.5 million), China (3.7 million), Mexico (3.5 million), Canada (3.4 million), EU (2.7 million), Norway (2.6 million), Brazil (2.3 million), UK (1.7 million) and Kazakhstan (1.5 million).

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What They Are Able to Do with It -

Saudi Arabia ranks with India, Italy Japan and even Russia in military spending!

1. In the case of Iran, develop Nuclear Weapons and subjugate their own people. In the case of Saudi Arabia, purchase

conventional arms in quantities out of proportion to their size.

2. Buy Influence

• China imports over 3 million barrels a day. Its largest suppliers are Saudi Arabia and Iran.

• The EU imports even more oil than China. Of its total, 2.48 million barrels a day come from the Middle East.

3. Raise a new generation that hates the West and that seeks to end the very industrialized world that

purchases their oil

To See What Lies Behind Terrorism Click on the black background

Oil empowers America’s enemies, funds terrorism, threatens Israel, distorts foreign policy to our disadvantage, and finances Iran’s development of nuclear weapons.

Our Conclusion:

There are few things we can be working on more important to the security of the United States, to the economic well-being of the industrialized world, for the success of the war on terrorism, and for the survival of the state of Israel than ending the geopolitical importance of oil.

What Using “Less Fuel” Really Means

Oil is a fungible international commodity. To the extent that Americans use up the oil supplied from our domestic production plus some oil from “friendly” nations, demand from the rest of the world must be met by other suppliers including “bad” producers like Iran. So we can’t solve the problem merely by buying our oil only from friendly producers.

World Oil Supply

There is no such thing as “good” oil or “bad” imported oil. Every ounce of oil we import helps empower our enemies.

The only way to reduce the geopolitical impact of oil and to take away the power of the oil producers

is to find alternatives to imported oil.

• Supply: Increase domestic production.

• Demand: Reduce consumption or find alternative fuels

60% of the oil we use is consumed for transportation

• The entire $5 billion being spent for weatherization will save less than ½% of the oil we use each year.

• Less than 3% of the oil we use is consumed generating electricity. So, while using renewables will reduce greenhouse gases, it will not significantly reduce oil consumption.

What Will and Will Not Work

• When it comes to our addiction to oil, electric power is not the problem, so as good as renewables may be for addressing the problem of global warming, using solar or wind instead of coal to generate electricity will do next to nothing for solving our addiction to oil.

• And while electric cars and plug-in electric hybrid vehicles may the wave of the future, they can’t do much immediately to end our addiction to oil. Although they can be built today (the technology is ready right now) US DoE projects that fewer than 3% of the cars on the road by 2030 will be electrics or plug-in hybrids. The problem is not primarily one of technology (they can be built today) but rather one of marketplace development and acceptance. If you have any doubt that it will take that long for this new technology to gain market share, remember that fewer than ½ of 1% of the cars on U.S. roads today are hybrids 12 years after Honda introduced them to the U.S. market in 1998.

The quickest, surest and most economical approach to slashing gasoline use is one that would produce and use alternative fuels in cars very much like those produced today, and that could be driven immediately, without a massive investment in new auto manufacturing or refueling infrastructure.

What That Will Take

1. Flexible Fuel” cars that can run on those alternative fuels - The “Open Fuel Standard Act (OFS),” (HR 1476 and S 835), would give consumers such a choice of fuels, by requiring manufacturers to produce and sell such cars. Since they are nearly identical to ordinary cars, for less than $100, every new car could be a flexible fuel vehicle equipped to run on alcohol fuels. According to USEPA OFS would give consumers that choice and put 177 million flexible fuel cars on the road by 2022.

2. The Advance Biofuels for them to run on – The revised Renewable Fuel Standard (“RFS2”) established by Congress in 2007 requires that gasoline refiners sell these alternative fuels in amounts that increase from about 9 billion gallons today, to 15 billion in 2012 and to 36 billion gallons a year by 2022. Today it’s corn ethanol that is being used to meet that requirement. But to meet the 36 billion requirement will take as much as 21 billion gallons of advanced biofuels from such sources as cellulosic waste or algae. The U.S. and our friends will need to carry out a massive R&D program to figure out ways to cost-effectively produce these advanced biofuels.

What Israel Can Do to Help

• The U.S.-Israel Energy Cooperation Act (section 917 of EISA [PL110-140]), already establishes a framework for U.S.-Israel cooperation to help produce these advanced biofuels.

• Prime Minister Netanyahu’s has made a commitment that Israel will help in the fight to end the global dependence on oil.

Marshalling Israel’s capabilities to help solve the problem of global addiction to oil.

Producing cost-effective substitues for gasoline.

What are some of the technologies that Israel has to offer to produce replacements for oil?

• Producing synthetic fuels from traditional feedstocks using new chemical processes:

• Or new biological processes (Enzymatic and Microbial Pretreatment of Cellulose, Hemicellulose and Lignin to free up the glucose needed for fermentation)

• Ed Bayer – Weizmann (enzymatic complexes, “cellusomes”) to use biochemical approaches to pretreat

• Charles Greenblatt and Stefan Rokem at Hebrew University and Shoham Yuval at Technion – study of bacteria that readily digest cellulosic waste (e.g. in municipal wastewater) to pretreat or that naturally produce petroleum to produce fuels direcdtly

• Sharon Amir at Tel Aviv University to use fungi that produce biodegrading enzymes

• Or new physical processes• Hydrogen production – WIS scientists work

on several methods to produce hydrogen (a clean and efficient fuel) using solar energy. These methods include: (i) hydrocarbon reforming, (ii) methane decomposition, and (iii) solar thermal-electrochemical dissociation of water at high temperatures.

• Biomass gasification – developing means to use solar energy to convert biomass (such as organic waste) to fuel.

Reprinted by permission of the owner, Deror Avi Feedstocks could be coal, municipal waste, corn stover, rice husks, wood waste, etc.

Photos reprinted by permission of author: Deror Avi

• Or by improving the fuel feedstocks using the most advanced scientific methods

Unique In Silico gene discoveryThe use of advanced computational tools to organize, refine, enrich, mine and prioritize vast amounts of genomic data allows the identification of novel genes which cannot be discovered using standard bioinformatic tools and wet lab

Techniques Comparative genomics based gene discoveryWe believe that comparative genomics, harnessing the valuable information available in the evolutionary processes that all plants underwent, is a strong approach for gene discovery. Our computational database includes more than 70 plant species and over 8 Million expressed sequences

• Or by BioEngineering Entirely New Ones

• TransAlgae's Technology

• Scientific Approach• The basic premise of TransAlgae is that organisms chosen from the wild are

being used for bio-fuel and co-products; nonetheless, they must be domesticated just as all successful crops have been. TransAlgae recognizes that the only effective method of domestication for the looming challenges ahead, is to use the tools of modern molecular biology. Therefore, we are developing platform technologies based on transgenic algae.

• Using transgenic algae together with our novel production systems, adapted for cultivating and harvesting algae, will considerably enhance yields per unit area, while greatly decreasing capital and running costs. As a breeding company, TransAlgae is developing a large number of strains that will be appropriate for different environments and system designs. By developing a platform for a matrix of climates, resources and co-products, we will be able to rapidly deploy stocks worldwide, allowing our partners to to meet demand and respond to changing market conditions.

• TransAlgae’s patent-protected production technologies, harvesting processes and gene modulations will increase yields of the desired products, prevent contamination of the algal production systems, while protecting the environment from inadvertent release of transgenic organisms.

• Or by Using Israel’s Experience with Desert Environments to Rediscover Old Ones

Halophytes – plants that can grow prolifically on damaged desert lands without the need for fresh water

January 2006 October 2007 (22 months growth)

An Army of Trees Grows in the Desertin the War for Energy Independence

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www.ea-21.org

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