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Jef CaersStanford UniversityStanford, California, USASome closing remarksResearch in economic downturnWhat to do ?

You do nothing different

You take action (cut)

You take the opposite action (change & invest)

Even Stanford University has fallen in the trap of short term thinking:When I last spoke to you in January via Stanford Report, the investment climate was difficult. You have all seen the worsening activity in recent weeks Provost, March 9-09

Since when is Stanfords planning in terms of weekly fluctuations ?Global recession or global panic?Swine flu: 36000 die of the flu each year50 swine flu cases reported so far in the US, nobody diedSo: why arent you all wearing your surgical masks year round?

Lets not underestimate our ability to panic !Panic !!What is the benefit of research?Only costs are discountedPotential benefit is never discounted or proratedCutting research = easy cost-cut = potential future lossOil Company X

Oil produced per day: 3 million barrels

Oil price = $60.0 /barrel

Sponsor the 10 most critical research consortia in the world: cost = $500.000

Change in Oil price needed per barrel to offset this cost: 0.0004 centsChange in Oil price needed per barrel to offset the cost of drilling 1 more dry exploration wells per year: 4 cents

What are our new investments?Closer collaboration on data and projects with companiesENI project TetrisCelines sponsoring by Chevron and project with Yuguang Chen on direct modeling of flow gridData from Total, Wintershal, Shell and Marathon

SoftwareContinued investment in S-GEMSOpen-source plug-ins to Petrel-Ocean 2009Availability of MPSAvailability of flow simulationAvailability of writing plug-ins

New focusRock physics and seismic modeling

Basin modeling

Groundwater management

Geological modeling/Process modeling

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