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Water Sustainability

A National Security Issue for the Middle East & North Africa

Fareed A. Salem

fareed.a.salem@conocophillips.com

Arid/Semi-Arid Groundwater Governance &

Management Workshop

April 3-8, 2005 – Cairo, Egypt

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Sustainable Development - - Doing things right Doing things right and and doing the right things

doing the right things

(3)

Our Commitment to Sustainable Development Our Commitment to Sustainable Development

For ConocoPhillips,

sustainable development is about conducting our business to promote economic growth, a healthy environment and vibrant communities, now and into the future.”

Jim Jim MulvaMulva

Chairman & CEO Chairman & CEO

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Global water

Global water - - scarcity scarcity

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0 10 20 30 40 50 60

<500 500-1,000 1,000-1,700 >1,700 Unallocated M3/Year

%

1995 2025

Global Annual Water Supply Per Capita

(6)

Renewable freshwater resources per capita is among the lowest in the world

A National Security Issue for the Middle East & North Africa

Water Sustainability

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0 500 1000 1500 2000 2500 3000

Iraq Algeria

Libya Saudi Arabia

U.A.E. Kuwait

Qatar

Oman Iran Egypt

Turkey Morocco

Sudan

Bahrain Syria Jordan

Israel Lebanon

(West Bank/G aza)

Yem en

Tunisia Total MENA MENA/

Turk & Iran

Country

M3/Capita/Yr

Manmade Water Internal Renewable Water Total external Water

MENA Water Resources – 2025

(8)

Renewable freshwater resources per capita is among the lowest in the world

Dependent (50%) on outside water sources for its water supplies

Water Sustainability

A National Security Issue for the Middle East & North Africa

(9)

0 20 40 60 80 100

Iraq Algeria

Libya Saudi Ara

bia U.A.E.

Kuwa it

Qatar

Oman Iran Egypt

Turkey Morocco

Sud an Bahrain

Syria Jordan

Israel Leban

on

(West Bank/

Gaza) Yemen

Tunisia Total ME

NA

ME

NA/Turk &

Iran

Country

% Dependence

Dependence on outside water sources

(10)

Renewable freshwater resources per capita is among the lowest in the world

Dependent (50%) on outside water sources for its water supplies

Unsustainable high water consumption rates

Water Sustainability

A National Security Issue for the Middle East & North Africa

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0 400 800 1200 1600 2000

Iraq Algeria

Libya

Saudi ArabiaU.A.E Kuwait

Qatar

Oman Iran Egypt

Turkey Morocco

Sudan

BahrainSyria Jordan

Israel Lebanon

(West Bank/Gaza)Yemen Tunisia

Total M ENA

MENA/Turk & Ira Country

M3/Capita/Yr

Agriculture Domestic Industry

MENA Water Consumption - 2000

(12)

Renewable freshwater resources per capita is among the lowest in the world

Dependent (50%) on outside water sources for its water supplies

Unsustainable high water consumption rates

Dependence On foreign

Technology & Capital

Water Sustainability

A National Security Issue for the Middle East & North Africa

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¾ ¾ Protect finite freshwater sources from misuse, abuse and Protect finite freshwater sources from misuse, abuse and waste

waste

¾ ¾ Extend the longevity of nonrenewable underground fossil Extend the longevity of nonrenewable underground fossil water

water

¾ ¾ Balance the competing needs for water based on the Balance the competing needs for water based on the principles of sustainable development

principles of sustainable development

¾ ¾ Encourage the development and use of alternative water Encourage the development and use of alternative water supplies (desalination, waste water reuse)

supplies (desalination, waste water reuse)

¾ ¾ Create a new water culture among all community Create a new water culture among all community members

members

Water Sustainability

A Proactive and Collaborative community lead initiative

which seeks to :

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Vision Leadership Commitment

Principles

BEHAVIOR

ATTITUDES CULTURE

Developing a “Water Sustainability” Culture

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Corporate Governance

Technology Investment

Enhance the efficiency of water utilization Increase water reuse

Minimize the potential impact to the environment from wastewater disposal

Develop new water supplies from non- conventional sources

Water Sustainability - Building on our core values and

technology foundation to deliver new innovative solutions

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Water Sustainability - Our Position

As a responsible global energy company committed to sustainable development, we recognize that fresh water is an essential natural resource for communities, businesses, and ecosystems. Global population growth will increase demand for fresh water and all users – domestic, agriculture, and industry – will need to effectively manage

supplies to meet demands.

ConocoPhillips produces and utilizes water in its operations. We are committed to the development of water management practices that conserve and protect fresh water

resources and enhance the efficiency of water utilization at our facilities. We will

assess, measure, and monitor our fresh water usage and based on these assessments we will manage our consumption, increase water reuse, and reduce the potential impact to the environment from wastewater disposal.

We acknowledge the importance of adequate fresh water supplies for communities to thrive and grow. We will work cooperatively with local communities where we

operate to develop solutions to water issues that could limit community and industrial growth. In regions of the world where freshwater is in short supply we will evaluate the need to develop affordable water supplies from non-conventional sources.

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The Pillars of Value for

The Pillars of Value for Water Sustainability Water Sustainability

¾¾

Continuous Improvement Continuous Improvement - - Reduce water Reduce water

related costs and risks through the proactive related costs and risks through the proactive

& holistic water management

& holistic water management

¾¾

Growth Enabler Growth Enabler - - Create new opportunities Create new opportunities through integrated water desalination and through integrated water desalination and reuse

reuse

¾¾

Differentiator Differentiator Extend knowledge and Extend knowledge and capabilities to host governments through capabilities to host governments through responsible community programs

responsible community programs

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Examples of Water Sustainability Examples of Water Sustainability

Immingham CHP Plant, UK Immingham CHP Plant, UK

¾¾

Uses adjacent refinery effluent for cooling make- Uses adjacent refinery effluent for cooling make - up water up water

¾¾

Reduced disposed wastewater by 50% Reduced disposed wastewater by 50%

¾¾

Saved one million dollars per year in water cost Saved one million dollars per year in water cost

¾¾

Deferred new capital investment by local water company to Deferred new capital investment by local water company to expand water treatment facility

expand water treatment facility

Produced Water, NM, U.S.A Produced Water, NM, U.S.A

¾¾

Study in progress for an integrated membrane system to clean Study in progress for an integrated membrane system to clean produced water for Industrial use

produced water for Industrial use

¾¾

Extend life of existing disposal wells Extend life of existing disposal wells

¾¾

Enable new Industrial Investment in the area Enable new Industrial Investment in the area

¾¾

No negative cost impact to all stakeholders No negative cost impact to all stakeholders

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¾Water has different value to its users

¾ Differentiate between Manmade water and God-given water

¾ Subsidies should be eliminated

¾ “Zero” goal for contaminates of freshwater sources

¾ Benchmarking to drive efficiency and reduce waste

¾ Water desalination and reclamation Technologies are strategic

¾ Water Sustainability is good business

¾ Awareness and Knowledge is the responsibility of the community leaders

¾ Information Management is integral to good decision-making

¾ Underground fossil water is a strategic reserve

Water Sustainability Concepts for MENA

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Parting Thoughts Parting Thoughts

Water scarcity is a complex social, economic and Water scarcity is a complex social, economic and environmental challenge.

environmental challenge. “ Water Sustainability Water Sustainability offers offers communities a new way of thinking to develop creative communities a new way of thinking to develop creative solutions

solutions

¾¾

Business leaders should embrace and integrate water Business leaders should embrace and integrate water sustainability within their business planning processes sustainability within their business planning processes

¾¾

Government should balance regulations with incentives to Government should balance regulations with incentives to enable and encourage businesses and communities to

enable and encourage businesses and communities to collaborate effectively

collaborate effectively

¾¾

Community leaders need to preach and support the creation Community leaders need to preach and support the creation of sustainable water communities

of sustainable water communities

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