D.O.B. - 05 Jun 1979
Birth place: India
Ajay Nagpure holds a Masters degree in Environmental Biology and presently works as a project fellow in the Civil Engineering Department of the Indian Institute of Technology Roorkee under the project entitled “Megacities and Global Change: An integrated study of South Asian megacities emission and their local-to-global impacts on air quality and climate”. He is pursuing a Ph.D. in the Centre for Transportation Systems (CTRANS) in IIT Roorkee. Earlier he worked as a research fellow at the Wildlife Institute of India and Zoological Survey of India in Dehradun. His research interests focus on atmospheric emissions and climate change, impacts of climate change on biodiversity, and environmental impact assessment and risk analysis.
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Originally Published As:
Title: Nuclear Energy and the Fossil Fuels
Author: M. King Hubbert
Source: Presented before the Spring Meeting of the Southern District Division of Production, American Petroleum Institute, San Antonio, Texas, March 8, 1956. Publication No. 95. Houston: Shell Development Company, Exploration and Production Research Division, 1956.
Year published: 1956
EDITOR'S NOTE: M. King Hubbert (1903-1989) was an American geophysicist best known for his accurate prediction of the peak in oil production in the lower 48 United States. In this paper, he published what is now known as the Hubbert Curve, a simple mathematical model of oil supply, and he used this to predict that the peak of crude-oil production in the United States would occur between 1966 and 1971. It actually occurred in 1970. The foundations of the Hubbert Curve were laid down in a 1949 paper that describes the production growth cycle for fossil fuels.
The evolution of our knowledge of petroleum since Colonel Drake's discovery of oil in Titusville, Pennsylvania, nearly a century ago, resembles in many striking respects the evolution of knowledge of world geography which occurred during the century following Columbus' discovery of America. During that period several continents, a number of large islands, and numerous smaller islands were discovered, but how many more might there be? Also during that period geographical charts had to be continuously revised in order to incorporate the new discoveries that were repeatedly being made, and also to correct some earlier speculations which had proved to be seriously in error. In addition, more detailed knowledge of the shore lines and other features of the areas discovered earlier was rapidly accruing, which also had to be added to the charts.
Then, as now, a voyager starting out on a major expedition of discovery needed to equip himself with charts of two kinds. He needed the large-scale detailed charts for piloting along known shores, and the comprehensive charts of whole oceans, or even of the known world, as a guide for his major navigations.
Likewise, for the petroleum industry the last century has been a period of bold adventure and discovery. Whole petroleum provinces analogous to the continents have been discovered and partly explored; a few tens of very large fields, corresponding to the large islands, and hundreds of small fields, the small islands, have been discovered. But how far along have we come on our way to complete exploration?
In the petroleum industry, for the last several decades – particularly in the United States – we have been conscious of a need for charting our progress, and thanks to the services of the American Petroleum Institute, the American Gas Association, the Petroleum Branch of the American Institute of Mining, Metallurgical, and Petroleum Engineers, the American Association of Petroleum Geologists, the United States Geological Survey and Bureau of Mines, we have been able to chart with considerable accuracy our past accomplishments, and our present status with regard to a short-term outlook. Longer-range reviews have had to be made with respect to specific problems, such as whether to build a given pipeline or refinery. But for the most part our outlook has been dominantly contemporary with concern principally for the next few years, and with only occasionally[2] a bolder adventure into the more distant future.
To continue the navigation analogy, what we seem to have achieved is an abundance of detailed charts of local areas, with only an occasional attempt to construct, shall we say, a map of the whole world which, despite its inherent imperfections, is still necessary if we are to have even an approximate idea of where we are now, and where we are going. The object of this discourse will be to see what can be done in this direction with the information presently available.
As a general orientation, let us consider that the petroleum industry is primarily an energy industry and secondarily a chemical industry. As an energy industry it utilizes the energy content of certain naturally occurring chemicals, namely the liquid and gaseous hydrocarbons. As a chemical industry it utilizes the material content of these same resources as constituting a complex array of organic molecules which have already been synthesized and are therefore available as the starting point of a series of enormously complex organic chemical products. In this respect it is again only one aspect of a much broader chemical industry utilizing coal, inorganic minerals, and plant and animal raw materials, in addition to petroleum.
The fossil fuels, which include coal and lignite, oil shales, and tar and asphalt, as well as petroleum and natural gas, have all had their origin from plants and animals existing upon the earth during the last 500 million years. The energy content of these materials has been derived from that of the contemporary sunshine, a part of which has been synthesized by the plants and stored as chemical energy. Over the period of geological history extending back to the Cambrian, a small fraction of these organisms have become buried in sediments under conditions which have prevented complete deterioration, and so, after various chemical transformations, have been preserved as our present supply of fossil fuels. When we consider that it has taken 500 million years of geological history to accumulate the present supplies of fossil fuels, it should be clear that, although the same geological processes are still operative, the amount of new fossil fuels that is likely to be produced during the next few thousands of years will be inconsequential. Therefore, as an essential part of our analysis, we can assume with complete assurance that the industrial exploitation of the fossil fuels will consist in the progressive exhaustion of an initially fixed supply to which there will be no significant additions during the period of our interest.
Throughout all human history until about the thirteenth century, the human race, in common with all other members of the plant and animal complex, had been solely dependent upon the contemporary solar energy which it had been able to command. This comprised the energy from the food it was able to consume, that of the wood burned for fuel, and a trivial amount of power obtained from beasts of burden, from wind, and from flowing water.
The episode of our present concern began when the inhabitants of northeast England discovered that certain black rocks found along the seashore, and thereafter known as "sea coles," would burn. Thus began the mining of coal and the first systematic exploitation of the earth's supply of fossil fuels. Its greatest significance, however, lay in the fact that for the first time in human history mankind had found a huge supply of concentrated energy by means of which the energy that could be commanded by one person could be greatly increased. The industrialization of the world with its concomitant consequences for the human population has been the direct result of that initial discovery.
To the energy obtained from coal there has been added, since about the middle of the last century, that from petroleum and natural gas, and a limited amount from oil shale.
Time does not permit of even a summary of the major consequences of the utilization of these two sources of energy, but as history shows, the immensity of human operations has been increased by several orders of magnitude.
No better record exists of the history of the exploitation of the fossil fuels than the annual statistics of their production. In Figure 1 there has been plotted the world production of coal since 1860[3], in Figure 2 the world production of crude oil, and in Figure 3 the combined production of energy from coal and crude oil.
The production of coal in the United States is shown in Figure 4, that of crude oil in Figure 5, and the production of marketed natural gas in Figure 6. The production of crude oil in Texas is shown in Figure 7, and that of marketed natural gas in Figure 8.
Since these curves embody just about all that is essential in our knowledge of the production of energy from the fossil fuels on the world, a national, and a state scale, it is worth our attention to study them briefly. In the first place, it will be noted that there is a strong family resemblance among them. Each curve starts slowly and then rises more steeply until finally an inflection point is reached after which it becomes concave downward. For the world coal production this point was reached about the beginning of World War I, and for world petroleum production it appears to have been as recently as 1951 or 1952.
For the production of coal in the United States the inflection point also occurred about 1914, and the inflection points for petroleum and natural gas apparently about 1952. The inflection points for the Texas production of oil and gas occur at about the same dates as those for the United States.
A more informative representation of the rate of growth of the production can be obtained by plotting the logarithm of the production rate versus time on semilogarithmic graph paper. This has been done in Figures 9 and 10 for the United States production of coal and crude oil, respectively. It will be noted in each case that the curve approximates a straight line until some definite date and then breaks away sharply downward. In the case of coal this departure from a straight line occurred about 1910, and for crude oil about 1930. All the other production curves shown in the preceding figures behave in a similar manner.
The significance of this is that during the initial stages all of these rates of production tend to increase exponentially with time. Goal production in the United States from 1850 to 1910 increased at a rate of 6.6 percent per year, with the production doubling every 10.5 years. Crude-oil production from l880 until 1930 increased at the rate of 7.9 percent per year, with the output doubling every 8.7 years.
During the corresponding growth phases, world production of coal increased at the rate of 4.3 percent per year, with production doubling every 16 years, and world production of crude oil increased at a rate of 7 percent per year, with the rate of output doubling every 10 years.
These facts alone force one to ask how long such rates of growth can be kept up. How many periods of doubling can be sustained before the production rate would reach astronomical magnitudes? That the number must be small can be inferred from the fact that after n doubling periods the production rate will be increased by a factor of 2n. Thus in ten doubling periods the production rate would increase by a thousandfold; in twenty by a millionfold. For example, if at a certain time the production rate were 100 million barrels of oil per year – the U.S. production in 1903 – then in ten doubling periods this would have increased to 100 billion barrels per year. No finite resource can sustain for longer than a brief period such a rate of growth of production; therefore, although production rates tend initially to increase exponentially, physical limits prevent their continuing to do so.
This rapid rate of growth shown by the production curves makes them particularly deceptive with regard to the future length of time for which such production may be sustained. For example, coal has been mined continuously for about 800 years, and by the end of 1955 the cumulative production for all of this time was 95 billion metric tons. It is somewhat surprising, however, to discover that the entire period of coal mining up until 1925 was required to produce the first half, while only the last 30 years has been required for the second half.
Similarly, petroleum has been produced in the United States since l859, and by the end of 1955 the cumulative production amounted to about 53 billion barrels. The first half of this required from 1859 to 1939, or 80 years, to be produced; whereas, the second half has been produced during the last 16 years.
A more effective means[4] of extrapolating such growth curves is afforded by two basic considerations: (l) For any production curve of a finite resource of fixed amount, two points on the curve are known at the outset, namely that at t = 0 and again at t = ∞. The production rate will be zero when the reference time is zero, and the rate will again be zero when the resource is exhausted; that is to say, in the production of any resource of fixed magnitude, the production rate must begin at zero, and then after passing through one or several maxima, it must decline again to zero. (2) The second consideration arises from the fundamental theorem of the integral calculus; namely, if there exists a single-valued function y = f(x), then
where A is the area between the curve y = f(x) and the x-axis from the origin out to the distance x1. In the case of the production curve plotted against time on an arithmetical scale, we have as the ordinate
where dQ is the quantity of the resource produced in time dt. Likewise, from equation (l) the area under the curve up to anytime t is given by
where Q is the cumulative production up to the time t. Likewise, the ultimate production will he given by
and will be represented on the graph of production-versus-time as the total area beneath the curve. These basic relationships are indicated in Figure 11. The only a priori information concerning the magnitude of the ultimate cumulative production of which we may be certain is that it will be less than, or at most equal to, the quantity of the resource initially present. Consequently, if we knew the quantity initially present, we could draw a family of possible production curves, all of which would exhibit the common property of beginning and ending at zero, and encompassing an area equal to or less than the initial quantity.
That the production of exhaustible resources does behave in this way can be seen by examining the production curves of some of the older producing areas. In Figure 12, for example, there is shown the crude-oil production curve for the state of Ohio. In this case the production began its initial sharp rise in 1884, passed through three maxima between 1890 and 1900 with the peak about 1896, and since then has undergone a slow, steady decline.
In Figure 13 is shown the corresponding curve for the state of Illinois, which is distinguished by having two widely separated and well-defined maxima, the second considerably larger than the first. The reason for these two maxima is well known. With the exception of occasional outcrops in local areas, the state of Illinois is almost completely blanketed by glacial drift. The first period of discovery, beginning about 1905, was based on surface geology with meager outcrop data. Consequently in about five years most of the discoveries amenable to this method had been made and for the next 25 years these fields continued to produce at declining rates with no new discoveries being made. It was well known geologically, however, that the whole Illinois Basin was potentially oil bearing, which was later verified when a new cycle of exploration using the seismograph was initiated in 1937. The peak of this cycle of production was reached in 1940, with the subsequent decline continuing until 1953 following which there has been a slight increase of production.
The present outlook for Illinois has recently been summarized by Vincent and Witherspoon[5] of the Illinois State Geological Survey. Cumulative production until July 1, 1955, was 1.8 billion barrels, and reserves from existing fields were estimated to be 0.5 billion barrels by primary methods of production and 1.0 billion barrels by water flooding. In addition, the rocks of Middle Ordovician age (below the St. Peter sandstone) have not yet been explored, so that undiscovered reserves are estimated at from 0.5 to 1 billion barrels. The ultimate cumulative production from Illinois is estimated, therefore, at about 4 billion barrels.
On the graph of Illinois production (Figure 13), each square of the grid represents 0.5 billion barrels so that a total of eight squares can be allowed under the curve before it declines to zero. Three and one-half squares have already been used up, leaving about four and one-half still to go. This implies that a third cycle of discovery and production is still due to occur in Illinois, yielding about as much oil as has been produced already, but no fourth cycle appears likely.
Coal.—In order to predict the future of the production of the fossil fuels, therefore, it is essential that the best possible estimates of the ultimate reserves he made. In the case of coal world-wide inventories have been made and revised intermittently since 1913. During the last decade an extensive re-examination of the coal reserves of the United States has been In progress by the United States Geological Survey, whose staff has also maintained current information on the reserves of the world. The results of the latest progress report of the Geological Survey[6], of the recoverable coal reserves of the world, are shown graphically in Figure 14. The total recoverable coal and lignite reserves of the world are now estimated to be about 2500 billion metric tons, of which the United States has about one-third, the U.S.S.R. about one-fourth, and China about one-fifth of the total.
The sharp contrast between these figures and earlier estimates of about 6000 billion metric tons for the whole world requires explanation. The earlier estimates included both thin and deep beds of coal without too much regard for practicable minability. The later estimates have been restricted to beds that are more workable; this has resulted in a reduction from around 6000 to about 5000 billion metric tons. More seriously, however, the earlier estimates were of coal in place, whereas the data given in Figure 14 represent recoverable coal assuming a 50-percent loss in mining. This makes the coal reserves directly comparable to the data for petroleum reserves, which also are based upon recoverable oil rather than oil in place.
Crude Oil and Natural Gas.— The comparable data for world crude-oil reserves are presented in Figure 15. Here the distinction must be borne in mind between crude oil or petroleum and total "liquid hydrocarbons" or "petroleum liquids" In the early stages of the petroleum industry, the usable products were crude oil and natural gas, and most petroleum statistics still pertain to those two products. During recent decades, however, due to improved technology there has been an increasing yield of the so-called "natural-gas liquids" obtained as a by-product of natural gas. Statistics on total petroleum liquids, or liquid hydrocarbons, comprise both crude oil and natural-gas liquids.
Since the production curves here considered are of crude oil only, then the pertinent reserve data must also be limited to crude oil. The data in Figure 15 represent the estimated amounts of crude oil initially present which are producible by methods now in use. The cross-hachured part of each column represents the amount which has been consumed already. These estimates of ultimate potential reserves are, with two exceptions, those obtained by L. G. Weeks[7], of the Standard Oil Company of New Jersey, in his detailed studies of the various sedimentary basins of the world. Weeks estimated the ultimate potential reserves of the world to be 6l0 billion barrels for the land areas, and 400 billion barrels for the continental shelves, or roundly 1000 billion barrels in total. These estimates included 110 billion barrels for the land area of the United States, and 155 billion barrels for the Middle East, including Egypt.
Subsequently the Middle East has developed into a petroleum province of unprecedented magnitude and Weeks' estimate is now known to be seriously too low. Recently Wallace E. Pratt[8], in the Report of the Panel on the Impact of the Peaceful Uses of Atomic Energy, gave as the proved reserves of liquid hydrocarbons for the Middle East the figure of 230 billion barrels. Since probably not less than 200 billion barrels of this is represented by crude oil, the estimate of the ultimate potential reserves of crude oil in the Middle East has been increased to 375 billion barrels, which can only be regarded as a rough order-of-magnitude figure.
In the case of the United States, Weeks' estimate of 110 billion barrels (based upon production practices of about 1948) was for the land area. The United States Geological Survey[9] has estimated potential offshore reserves of the United States, based upon the productivity of comparable adjacent land areas, to be as follows:
Olaf P. Jenkins[10] of the California Division of Mines has estimated the offshore reserves of California to be 4 billion barrels. Combining this with the U.S. Geological Survey estimate for Louisiana and Texas gives 17 billion barrels, which has here been rounded off to 20 billion.
The production record of the past two decades, due in part to Improved recovery practices, indicates that Weeks' figure of 110 billion barrels for the land may also be somewhat low. This has accordingly been increased to 130 billion, giving a total ultimate potential reserve of 150 billion barrels of crude oil for both the land and offshore areas of the United States.
Although arrived at independently, this figure is in substantial agreement with Pratt's[11] figure of 170 billion barrels for the total liquid hydrocarbons of the United States. The ratio of crude oil to liquid hydrocarbons can be obtained approximately from the latest American Petroleum Institute[12] release on proved reserves. As of January 1, 1956, the proved reserves of crude oil were 30.0 billion barrels, while those of total liquid hydrocarbons was 35.4 billion barrels. Applying this ratio to Pratt's figure of 170 billion barrels of liquid hydrocarbons gives 144 billion barrels of crude oil.
With these modifications we obtain a figure of about 1250 billion barrels for the ultimate potential reserves of crude oil of the whole world.
Since crude oil and natural gas are genetically related, probably the most reliable procedure for estimating the ultimate reserves of natural gas is from the ratio of gas to crude oil in current production and in the proved reserves. No attempt has been made to do this for the whole world for which gas statistics and reserve estimates are largely lacking; but for the United States the net gas production during 1955 was 10.1 trillion cubic feet and the crude-oil production was 2.42 billion barrels, giving a production gas-oil ratio of 4200 cubic feet per barrel.
The proved reserves of gas and oil for January 1, 1956, as given by the American Gas Association[13] and the American Petroleum Institute[14] , are 224 trillion cubic feet of gas and 30.0 billion barrels of oil, respectively. This gives a gas-oil ratio of 7500 cubic feet per barrel.
Assuming the ultimate potential oil reserves of the United States to be 150 billion barrels of which 52.5 had been produced by January 1, 1956, leaves 97.5 billion barrels still to be produced. Then, if we use the gas-oil ratio of current production, we obtain 410 trillion cubic feet of gas as the future reserve. If we assume the ratio of 7500 cubic feet per barrel, obtained from proved reserves, we obtain a future reserve of 730 trillion cubic feet. Adding to these figures the cumulative production of 130 trillion cubic feet then gives as the ultimate potential gas reserve of the United States a low figure of 540 or a high of 860 trillion cubic feet. Of these figures the latter appears the more reliable since the reserves represent a much larger sample than the annual production. It also compares more favorably with the estimate of 750 trillion cubic feet recently made by Pogue and Hill[15] of the Chase Manhattan Bank, and is in substantial agreement with the figure of 850 trillion cubic feet given by Pratt[16]. Pratt's figure of 850 trillion cubic feet is accordingly the one that is here adopted.
On the basis of the relative magnitudes of the Texas rate of production and proved reserves as compared with those of the United States, an allotment of 40 percent of the total reserves of the United States to Texas appears to be of a proper order of magnitude. This would then give for Texas an ultimate potential reserve for crude oil of 60 billion barrels and 340 trillion cubic feet for natural gas. If the figure of 40 percent should be too low and the actual ratio more nearly 45 percent, then these reserve figures would be increased proportionately.
Oil Shales and Tar Sands.—The oil obtainable from oil shales in the United States has been taken to be 1000 billion barrels. This is based upon a revised figure recently released by the United States Geological Survey[17] of 900 billion barrels of oil for the shales of Colorado. A. C. Rubel[18] has recently made a review from published literature of all the bituminous shales of the United States which are potential sources of oil, and has arrived at an estimate of a possible 2.5 trillion barrels of oil obtainable from shale.
Outside the United States oil shales are present in various countries; but, with the exception of the shales in Brazil, the magnitudes are negligible compared with those of the United States. The oil shales of Brazil are reported to be of about the same magnitudes as the earlier estimates for those of the United States, which would suggest an oil content of the order of 300 to 500 billion barrels.
The largest known deposit of tar sands in the world is that of the Athabaska tar sands in northeastern Alberta, Canada. The extractable oil content of these sands is still not accurately known, but current estimates range from about 300 to 500 billion barrels of oil. As compared with this the readily minable tar sands of the United States would yield only about 1 billion barrels of oil[19], with a few billion barrels more obtainable from the less minable deposits.
Other large deposits of uncertain magnitude exist in eastern Venezuela and in Mesopotamia. Making liberal allowances for the possible magnitudes of these, Ayres and Scarlott[20] have ventured as an educated guess that the total oil obtainable from the tar deposits of the world might be as much as 800 billion barrels.
Energy Content.—The relative magnitudes of the initial world reserves of all the fossil fuels reduced to a common energy unit of measurement are shown in Figure 16. It will be noted that of all the fossil fuels initially present the recoverable energy of coal represents 70 percent of the total, oil and gas about 14 percent, oil shale about 10 percent, and tar sands about 6 percent.
A corresponding chart of the fossil fuels of the United States is shown in Figure 17. The total of 8.5 X 1015 kw-hr of heat for the fuels of the United States represents about a third of the fossil fuels of the world. Again coal represents approximately three-fourths, oil shale about one-fifth, and oil and gas about 6 percent of the total, with one-quarter of the oil and gas already consumed.
Utilizing the method of extrapolation described earlier and the reserve figures cited, we are now able to make some approximations of the future production curves for the various fossil fuels. This has been done in Figure 18 for the world coal production. The scale of the figure for cumulative production is given by the square in the upper left-hand corner. The altitude of this square is 2 X metric tons per year, and its base is 100 years. Its area, therefore, is:
2 x 109 metric tons/yr x100 yrs = 200 x109 metric tons. Hence, in this diagram every square of the coordinate grid represents 200 billion tons of coal. Then, since the amount of recoverable coal initially present was 2600 billion tons, the area under the production curve can contain only 13 squares.
In the projection as drawn, it is assumed that the ultimate peak of production will be about three times the present rate; should this be the case, the peak would be reached at about the year 2150. If the maximum rate of production should be greater than this amount, then the peak would occur sooner; if the rate should be less, the peak would occur later. If the present rate of production should remain constant at about 2 billion metric tons per year, the coal supply would last about 1250 years from the present.
The production of coal in the United States has been similarly projected in Figure 19. In this case, the recoverable reserves are about 950 billion short tons and the cumulative production has been 32 billion tons. Since each square of the grid represents 100 billion tons, the total area under the curve should be about 10 squares. The curve has been drawn for an ultimate peak rate about four times that of the present. With this assumption, the maximum of the curve would likewise occur at about 2150. But the date of the culmination would be respectively earlier or later should the peak production rate be greater or less than has been assumed.
The same treatment for the world production of crude oil is shown in Figure 20. Here the ultimate potential production is taken to be the 1250 billion barrels shown in Figure 15. The unit rectangle of the grid represents 250 billion barrels. Consequently, the total area under the curve will contain but five of these rectangles. In Figure 20, the curve has been drawn on the assumption that the maximum rate of production will be about two and one-half times the present rate, which places the date of the peak at about the year 2000. As in the case of coal, variations of this assumed maximum rate will advance or retard the date of the culmination.
The proved reserves shown in this figure are about 250 billion barrels. The total amount of oil discovered is the sum of the cumulative production and the proved reserves. Since this is approaching the peak of the curve, the figure suggests that, even if we are less than half through in our exploration for petroleum, the period of declining rates of discovery has almost arrived.
Applying this same technique to the production of crude oil in the United States, there is shown in Figure 21 a graph of the production up to the present, and two extrapolations into the future. The unit rectangle in this case represents 25 billion barrels so that if the ultimate potential production is 150 billion barrels, then the graph can encompass but six rectangles before returning to zero. Since the cumulative production is already a little more than 50 billion barrels, then only four more rectangles are available for future production. Also, since the production rate is still increasing, the ultimate production peak must be greater than the present rate of production and must occur sometime in the future. At the same time it is impossible to delay the peak for more than a few years and still allow time for the unavoidable prolonged period of decline due to the slowing rates of extraction from depleting reservoirs.
With due regard for these considerations, it is almost impossible to draw the production curve based upon an assumed ultimate production of 150 billion barrels in any manner differing significantly from that shown in Figure 21, according to which the curve must culminate at about 1965 and then must decline at a rate comparable to its earlier rate of growth.
If we suppose the figure of 150 billion barrels to be 50 billion barrels too low – an amount equal to eight East Texas oil fields – then the ultimate potential reserve would be 200 billion barrels. The second of the two extrapolations shown in Figure 21 is based upon this assumption; but it is interesting to note that even then the date of culmination is retarded only until about 1970.
One other contingency merits comment. By means of present production techniques, only about a third of the oil underground is being recovered. The reserve figures cited are for oil capable of being extracted by present techniques. However, secondary recovery techniques are gradually being improved so that ultimately a somewhat larger but still unknown fraction of the oil underground should be extracted than is now the case. Because of the slowness of the secondary recovery process, however, it appears unlikely that any improvement that can be made within the next 10 or 15 years can have any significant effect upon the date of culmination. A more probable effect of improved recovery will be to reduce the rate of decline after the culmination with respect to the rates shown in Figure 21.
The corresponding extrapolation of the United States production curve for natural gas is shown in Figure 22. Here the ultimate potential reserves are taken to be the 850 trillion cubic feet recently estimated by Pratt. In this case the unit rectangle of the graph represents 100 trillion cubic feet so that the total area under the curve is limited to eight and one-half rectangles of which one and one-half represent the approximately 150 trillion cubic feet produced already.
The present production rate is about 10 trillion cubic feet per year and the curve is still rising steeply. An ultimate rate of about l4 trillion cubic feet per year is about the maximum that appears likely while allowing for the necessary period of prolonged decline. Assuming this value for the maximum, then the curve as drawn in Figure 22 is a reasonable extrapolation. The date of culmination in this case should be approximately 1970.
Shown also on the graph are two points indicating the rates of gas consumption for 1965 and 1975 postulated by Pratt[21]. The consumption rate for 1965 fits the curve very satisfactorily, but it is almost impossible to make the curve pass through Pratt's point for 1975 without requiring an ultimate gas production considerably in excess of the 850 trillion cubic feet assumed.
Curves for the ultimate production of crude oil and natural gas, respectively, for Texas are shown in Figures 23 and 24. These are based on the assumed ultimate potential reserves of 60 billion barrels and 340 trillion cubic feet for oil and gas, respectively. The behavior of the curves is very similar to that of the corresponding curves for the United States, with the oil production culminating about 1965 and the gas production about 1970. Improved methods of secondary recovery will probably make the rate of decline of the oil production curve less steep than is shown here, but are not likely seriously to postpone the date of the culmination.
From this inventory of the energy supplies represented by the fossil fuels, it appears that about three-quarters of the reserves of the fossil fuels of the world are represented by coal and the remaining one-quarter is about equally divided between liquid and gaseous hydrocarbons, and oil shales and tar sands. Production of the world's coal has already consumed about 3.7 percent of the minable reserves initially present, that of oil and gas about 7 percent, while the production from shale and tar sands has barely been started.
However, because of the versatility and usefulness of the liquid and gaseous hydrocarbons, and also because of their relative ease of extraction, the rate of exploitation of the latter has increased disproportionately to their magnitude as compared with coal.
If the world should continue to be dependent upon the fossil fuels as its principal source of industrial energy, then we could expect a culmination in the production of coal within about 200 years. On the basis of the present estimates of the ultimate reserves of petroleum and natural gas, it appears that the culmination of world production of these products should occur within about half a century, while the culmination for petroleum and natural gas in both the United States and the state of Texas should occur within the next few decades.
This does not necessarily imply that the United States or other parts of the industrial world will soon become destitute of liquid and gaseous fuels, because these can be produced from other fossil fuels which occur in much greater abundance. But it does pose as a national problem of primary importance, the necessity, both with regard to requirements for domestic purposes and those for national defense, of gradually having to compensate for an increasing disparity between the nation's demands for these fuels and its ability to produce them from naturally occurring accumulations of petroleum and natural gas.
Finally, there is the possibility of obtaining industrial energy from nuclear sources which we now propose to examine.
Ever since the explosion of the first nuclear bomb over Hiroshima in 1945, there has been spectacular evidence that the tremendous store of energy contained within the nucleus of certain unstable atoms can at last be released. Gradually during the succeeding years, the veil of secrecy has been lifted until finally, as a result of the United Nations International Conference on the Peaceful Uses of Atomic Energy, held in Geneva during August 1955, virtually complete information on the possible industrial uses of the energy from the fissioning of the uranium has now been made public.
In addition, very active developments in the United States, England, the U.S.S.R., and other countries, of large power reactors are under way. Moreover, nuclear-powered submarines are already in successful operation. What, we wonder, is the magnitude of the potential industrial development of energy from these sources? How much uranium or thorium would be required to power an industrial civilization comparable to that now powered by the fossil fuels? And does this quantity exist in a form that is readily obtainable?
To answer these questions, let us first familiarize ourselves with the basic elements of the nuclear-power reactions. The fissionable elements, as indicated in Table 1, comprise two isotopes of uranium, U-235 and U-233, and one of plutonium, Pu-239. Of these, only one, U-235, occurs naturally and the other two are man-made, Pu-239 being derived by a radioactive transformation from U-238, and U-233 from thorium. The isotopes, U-235, U-233, and Pu-239, are known accordingly as fissionable or fuel materials; whereas U-238 and Th-232, while not themselves fissionable, can be converted into fissionable isotopes and so are known as fertile materials.
Naturally occurring uranium consists of the isotopes, U-238 and U-235, in the ratio of 140 to 1. Any given quantity of natural uranium contains 99.3 percent of U-238 and 0.7 percent of U-235. Natural thorium consists of the single isotope Th-232.
Spontaneous fissioning of U-235 occurs when a concentration of this isotope greater than some critical amount is brought together. If the reaction is uncontrolled, the result is the explosion of an atomic bomb; if properly controlled, the energy, in the form of heat, can be released at a determinate rate. Nuclear piles comprise assemblages of fissionable and auxiliary materials for maintaining controlled nuclear reactions.
The elementary nuclear-power reaction is that indicated in Figure 25. Here U-235 in a critical amount is undergoing fissioning. When a U-235 atom is struck by a neutron, it breaks into fragments known as fission products which consist of other atoms near the middle of the table of atomic numbers, and also releases neutrons which strike other U-235 atoms, thereby maintaining a chain reaction. Each fission releases, on the average, 200-million electron volts of heat which, like the heat of combustion of coal or oil, can be used to drive a steam power plant.
The objections to the sole use of U-235 are its scarcity and the large amounts of energy required to separate it from U-238. Hence, very great importance attaches to the possibility of converting the fertile materials, U-238 and Th-232, into fissionable materials by means of the breeder reaction. The breeder reaction for U-238 is shown schematically in Figure 26. In this case, the neutrons from the fissioning of U-235 are used to cause a radioactive transformation of U-238 to Pu-239 which is then fissionable. By a similar reaction Th-232 can be converted to U-233 which is also fissionable. It has been experimentally demonstrated that both of these reactions are possible and are capable of producing from the fertile materials more fuel material than is consumed. Thus, in principle, by means of properly developed breeder reactors, it is possible to consume whole uranium and thorium. In the subsequent discussion it will be assumed that complete breeding will have become the standard practice within the comparatively near future.
Now for the energy that is released by the fissioning of a given amount of uranium (or thorium). As indicated in Table 2, the fissioning of 1 gram of U-235 releases 2.28 x 104 kw-hr of heat, which is equivalent to the heat of combustion of 3 tons of coal or of 13 barrels of oil. One pound of U-235 is equivalent to 1400 tons of coal or 6000 barrels of oil. Within narrow limits the same values are valid for U-238 and for thorium.
Using the foregoing data, the uranium equivalents of the fossil-fuel reserves of the United States are shown in Table 3. The energy of 358,000 metric tons (l metric ton is equal to 10 grams or 2205 pounds) of uranium is equal to that of all the fossil-fuel reserves of the United States. In Table 4 it is shown that the uranium equivalent of all the coal, oil, gas, and water power to be consumed in the United States during 1956 amounts to only 553 metric tons.
In addition to the uranium used as fuel, there is also an amount which must be permanently tied up in inventory in the reactors and processing plants as indicated in Table 5. This is estimated to be about 600 metric tons per million kilowatts of generating capacity. The present capacity of the United States is about 100 million kilowatts, which would require an inventory of about 60,000 tons of uranium. The inventory per ton of uranium consumed per year is about 740 tons, so if the fuels and water power of Table 4 were entirely replaced by nuclear power, the inventory requirements would be about 410,000 metric tons.
It is clear, therefore, that during the period in which the power capacity is expanding the requirements of uranium for inventory will greatly exceed those for fuel. When growth ceases, the annual increment to inventory will become zero. The relative requirements of uranium for inventory and for fuel of an expanding nuclear-power system are shown in Figure 27. The initial rate of expansion is taken to be 10 percent per year, with the power capacity becoming asymptotic to 500 million kilowatts.
With this review of requirements we now ask: What is the magnitude of the supplies? The uranium contents and fuel equivalents of the principal sources of uranium in the United States are shown in Table 6. The ores which are currently being produced, the so-called high-grade ores, are those of the type found principally in the Colorado Plateau. These are said to average about 0.35 percent uranium, or 3500 grams per metric ton, which is equivalent to about 10,500 tons of coal or 45,000 barrels of oil per metric ton of ore.
The so-called "low-grade" ores are the phosphate rocks and the black shales which have uranium contents in the range of 0 to 300 and 10 to 100 grams per metric ton, respectively. Even so, such rocks are equivalent to 90 to 900 tons of coal or 390 to 3900 barrels of oil per metric ton for the phosphates, and to 30 to 300 tons of coal or 130 to 1300 barrels of oil per metric ton of rock, for the black shales. Even granite, as has been pointed out by Harrison Brown[22] and by Brown and Silver[23] , contains about 13 grams of thorium and 4 grams of uranium per ton, which is equivalent to about 50 tons of coal or 220 barrels of petroleum per metric ton of granite.
What quantity of uranium in rocks of these various types may there be? An indication of the order of magnitude may be obtained by a glance at the map in Figure 28. The Colorado plateau, which is the principal producer of the high-grade ores, has an estimated ultimate reserve of the order of 50,000 to 100,000 metric tons of uranium. The large supplies, however, are to be found in the so-called "low-grade" ores of the phosphate rocks and he black shales. The Phosphoria formation alone, it is estimated from a recent paper by McKelvey and Carswell[24], contains about 400 million tons of uranium. Another 0.5 million tons, at least, can be obtained from the phosphate rocks of Florida and the neighboring states.
The Chattanooga shale in Tennessee contains a stratum, the Gassaway member, about 5 meters thick whose average content of uranium is about 70 grams per metric ton[25]. With a density of 2.5 metric tons per cubic meter, this would amount to about 175 grams of uranium per cubic meter, or to 875 grams per square meter for the total thickness of the member. Then for an area of a square mile the uranium content of this member would be 2.3 X 109 grams or 2300 metric tons. This does not sound impressive, and in fact, as compared with contents of the more familiar metallic ores, it is a trifling amount; nevertheless, the energy content of this member per square mile is equivalent to 30 billion barrels of oil, or to five East Texas oil fields. Uranium-rich black shales of Devonian-Mississippian age, which correlate with the Chattanooga, are widespread in the Mid-Continent area as well as in Tennessee and the neighboring states. In addition, the Sharon Springs member of the Pierre shale of Cretaceous age occurring in an extensive area of North and South Dakota east of the Black Hills is also rich in uranium. No attempt has been made to determine the amount of minable uranium which these shales must contain, but since their areal extent amounts to several hundred thousands of square miles, their uranium content would appear to be as much as several hundred million metric tons.
Well-defined thorium deposits, on the other hand, are comparatively rare, being found principally in placer deposits of monazite sands. One belt of these deposits extends north and south along the piedmont of North and South Carolina. In addition to the reserves in already established environments, there remains another category, as yet unevaluated, of potential reserves of both thorium and uranium in minor accessory minerals of alkalic igneous rocks and carbonatites (intrusive limestones) which are widespread in western United States.
From these evidences it appears that there exist within minable depths in the United States rocks with uranium contents equivalent to 1000 barrels or more of oil per metric ton, whose total energy content is probably several hundred times that of all the fossil fuels combined. The same appears to be true of many other parts of the world. Consequently, the world appears to be on the threshold of an era which in terms of energy consumption will be at least an order of magnitude greater than that made possible by the fossil fuels.
As remarked earlier, experimental nuclear-power reactors are already under construction in several parts of the United States, and in the United Kingdom, the U.S.S.R., and elsewhere, and nuclear-powered submarines are in successful operation. It will probably require the better part of another 10 or 15 years of research and development before stabilized designs of reactors and auxiliary chemical processing plants are achieved after which we may expect the usual exponential rate of growth of nuclear-power production.
The decline of petroleum production and the concurrent rise in the production of power from nuclear energy for the United States is shown schematically in Figure 29. The rise of nuclear power is there shown at a rate of about 10 percent per year, but there are many indications that it may actually be twice that rate.
In order to see more clearly what these events may imply, it will be informative to consider them on a somewhat longer time scale than that which we customarily employ. Attention is accordingly invited to Figure 30 which covers the time span from 5000 years ago – the dawn of recorded history – to 5000 years in the future. On such a time scale the discovery, exploitation, and exhaustion of the fossil fuels will be seen to be but an ephemeral event in the span of recorded history. There is promise, however, provided mankind can solve its International problems and not destroy itself with nuclear weapons, and provided the world population (which is now expanding at such a rate as to double in less than a century) can somehow be brought under control, that we may at last have found an energy supply adequate for our needs for at least the next few centuries of the "foreseeable future."
The author is indebted to various of his associates for assistance and criticism in the preparation of this study, but particularly to K. W. Paul who spent the better part of two or three months in assembling and helping to digest the mass of difficultly obtainable information necessary for the preparation of this paper.
The water sector worldwide is increasingly characterized in terms of a crisis situation. The unique and complex characteristics of the water resource entail complex social, political, and economic implications in its management. The water crisis is mainly a crisis of governance and the management forms under which water has been historically governed. In light of the problems in the water sector, public-private partnerships have been increasingly advocated and adopted throughout the world. Proponents of partnerships have often appealed to the financial gains, cost reductions, efficiency gains, environmental compliance, human resource developments, and increased services which have followed private sector engagement. Opponents of partnerships have appealed to the price increases, imbalance of power, labor disputes, inequities, environmental damage, and increased risks associated with private sector participation in water services. This paper reviews these debates to conclude that evidence can be found in support of either position. The paper argues that this dichotomous debate has lead to inconclusive and unconstructive discussions among interested parties. The paper recommended that focus be re-directed away from ideological positions on privatization towards a focus on the principals and standards which can make private participation work for the public good when it is chosen.
Water resources are used in various ways by society and scientists predict that water scarcity will be one of the most important issues of the 21st century. Currently, 2.4 billion people lack access to basic sanitation and 1.2 billion people lack access to safe water sources. Nearly 2 billion people live with water scarcity, and this number is expected to rise to 4 billion by 2025, unless radical reforms emerge. Reports from development agencies, governments, water commissions, and research institutes continually point to an impending water crisis. These agencies also point to the water crisis arising from mismanagement not an absolute scarcity problem. Thus, improving current water provisions and avoiding a crisis of availability-with the entire human suffering this would entail-is possible. The message highlighted by various international efforts is that sub-optimal management of water is not an option if sustainable development is to be achieved. Throughout the history of civilization governments have grappled with the issue of water system management. Historical governance structures range from fully privatized systems to public-private arrangements to public systems. In the last decade the global water sector has experienced rising involvement of private entities in the production, distribution, or management of water and water services (see Figure 1). This ‘privatization’ has been one of the most important and controversial trends in the sector. The privatization of water encompasses a variety of water management arrangements. Full privatization is rare, and the most common form of ‘privatization’ is a partial privatization effort in the form of public-private partnerships. Forces driving these changes include degrading infrastructures, the inability of public water agencies to satisfy basic human water needs, and the financial strain on public entities. Controversy surrounding privatization arises from concerns regarding the ‘commodification’ of a basic human right, the multinational takeover or management of national water systems, and reports of privatization failures. Despite varying opinions, all positions agree that the global water situation requires new management of water. This paper discusses various forms of water governance with a focus on public-private partnerships and finds that evidence can build a case in favor of or against public-private partnerships. The inquiry found that a re-evaluation of the current debate is necessary with attention being re-directed away from ideological positions on privatization towards a focus on the principals and standards which can make private provision work for the public good when it is chosen.
At the crux of the water debate is governance and determining how to derive the most value from available water while not depriving people of their basic water needs. Water governance can be defined as the range of political, social, economic, and administrative systems that are in place to regulate the development and management of water resources and provision of water services at different levels of society. Counties face differing socio-economic, political, and historical contexts which will affect the way in which water resources and services are managed. However, according to Hall, most countries face a similar set of challenges and objectives with respect to water. All countries face the challenge of ensuring water infrastructure exists. Infrastructure issues include challenges such as reducing leakage, replacing and extending networks, and improving technology. As well, countries must ensure that the various social and political objectives surrounding water are addressed. These objectives include public acceptance, improving coverage, effectiveness, affordability, raising standards, ensuring transparency and accountability, and resolving international water disputes. Also, environmental and health challenges must be addressed by countries. Countries must address public health needs, environmental management, and the conservation of water. In addition, countries must make financial and managerial decisions regarding water undertakings. Financial objectives such as sustainable and equitable tariffs, effective revenue collection, financing investment and fiscal impact are decisions which must be made. Managerial objectives such as improving efficiency and productivity, evaluating administrative feasibility, capacity building, and efficient procurement must also be implemented. There are multiple responsibilities which a water and wastewater service provider faces. These include infrastructure and asset ownership, capital investment, commercial risk, and operations and maintenance.
Moreover, water is a large bulky good, which often requires large capital facilities that exhibit economies of scale. The collection, storage, treatment, and distribution of water are often best served by a large reservoir due to the low average cost associate with economies of scale in the sector. This structural requirement entails that water is best organized as a ‘natural monopoly’. Thus, government regulation of the water sector is inevitable, regardless of which form of governance is chosen. There are various governance arrangements. The choice regarding which management structures can face the above challenges, objectives, decisions, and responsibilities of a country can vary from a complete public solution, to a quasi-public solution, to a fully private solution. Please see Table 1 below for a summary of governance structures in the water sector.
Today, various forms of governance exist in the water sector. Public water provision is the most widely used governance structure under which the government takes on all of the responsibilities and challenges of water and wastewater services. The provision of water has long been considered an essential public good, and hence a core governmental responsibility. Worldwide, 85 percent of drinking water provision lies in public hands. In developed countries the public sector is the normal mode of management of water supply and sanitization services. The USA, Canada, Japan, Australia, New Zealand, and most European Union member states choose public sector management. Only the United Kingdom and France are the exceptions in which water and wastewater services are provided by the private sector or mixed management. Under a public governance structure decisions and management of infrastructure, capital investment, commercial risk, and operations and maintenance are taken on by a public entity for an indefinite period of time. Fully public management of water often takes place through national or municipal government agencies, districts, or departments dedicated to providing water services for a designated service area. Public managers make decisions, and public funds may be provided from general government revenues, loans, or charges. Governments are responsible for oversight, setting standards, and facilitating public communication and participation.
Another form of public management involves cooperatives and user associations. These management arrangements tend to be decentralized and join local uses together to provide public management and oversight. Usually customers have decision-making power through elections for different water authorities. The system is often externally audited annually. A key element of most cooperatives is that a basic water requirement should be provided to all members at affordable rates. An example in Santa Cruz, Bolivia serves nearly one hundred thousand customers. In 1997, this cooperative compared well to other Bolivian utilities in terms of efficiency, equity, and effectiveness. The group uses a varying rate structure and incorporates conservation through increasing block rates, which are not applied to the very poor. Table 2 exhibits other common forms of public sector water undertakings.
In the 1990s public-private partnerships became an advocated governance approach to resolving the twin problems of decaying infrastructure and financial constraints which both threatened public capacity for meeting water needs. A public-private partnership in the water sector involves transferring some of the assets or operations of a public water system into private hands. Rapid growth in water partnerships in the 1990s was met with a decline in 2001 after a series of financial crises. Though it is too early to tell, if this downward trend will persist, specialists suggest that rising water partnerships are likely to persist. This is partially attributed to the continued support international lending institutions have for public-private partnerships. Moreover, international support for partnerships continues. For example, at the second World Water Forum in the Hague in March 2000, the ‘Framework for Action’ called for 95 percent private sector involvement for supplying investment to meet water needs. There are a variety of arrangements of public-private participation including service contracts, management contracts, leases, concessions, and build-own-transfer programs (see Table 1). Gleick et al. note eleven water system functions that can be privatized. These are:
Private-sector participation in public water companies has a long history. In this model, ownership of water systems can be split among private and public shareholders in a corporate utility. Majority ownership, however, is usually maintained within the public sector, while private ownership is often legally restricted, for example, to 20 percent or less of the total shares outstanding. Such organizations typically have a corporate structure, a managing director to guide operations, and a Board of Directors. This model is found in the Netherlands, Poland, Chile, and the Philippines.
Public-private partnerships are dominated by large multinational companies lead by Suez and Veolia. Other major players in the private sector include Thames Water, Aguas de Barcelona, and Saur International. Table 3 offers a summary of projects, investments, water sales, and customers worldwide for these leading international firms.
Private companies are more attracted to partnership opportunities in water provision than sanitation. Occasionally, sanitation is undertaken by a private contractor but under conditions that it is subsidized or backed by the government with regulations for specified fees. In cases where public sewage systems are highly deficient, wastewater and sewage treatment services are contracted out by the public sector. However, it is common for water supply to be privatized separately from sanitation and for sanitation to remain the responsibility of the public sector.
The management and operation arrangements of different public-private partnerships vary. Service, management and lease/affermage contracts maintain public ownership and financing of water service management. Under these arrangements public water utilities give responsibility to the private sector for operation and maintenance activities. Such arrangements do not usually address financing issues associated with new facilities, or create better access to private capital markets. Rather, they provide managerial and operational expertise that may not be available locally. In a service contract a private firm takes responsibility for a specific task, such as installing meters, repairing pipes or collecting bills for a fee for a short period of time. Areas in which service contracts have proven effective include: maintenance and repair of equipment, water and sewerage networks, and pumping stations; meter installation and maintenance; collection of service payments; and data processing. Management contracts are arrangements under which the government transfers certain operation and maintenance activities to a private company. Management contracts are also short-term, and tend to be paid on a fixed or performance basis. Lease and affermage contracts are arrangements under which the private operator takes responsibility for all operations and maintenance functions. Here the term is longer, typically 10-15 years, and the private operator is responsible for billing and tariff revenue collection. Under an affermage, the contractor is paid an agreed-upon affermage fee for each unit of water produced and distributed, whereas under a lease, the operator pays a lease fee to the public sector and retains the remainder.
Under concession and Build-Operate-Transfer models, capital investment, commercial risk, and operations and management are undertaken by the private sector. The full-concession model transfers the entire utility and thus the operation and management responsibility for the entire water-supply system along with most of the risk and financing responsibility to the private sector. Specifications for risk allocation and investment requirements are set by the contract. Concessions are usually long-term to allow the private firm to recoup its investments. Technical and managerial expertise may be transferred to the local municipality and the community over time, as local employees gain experience. At the end of the contract assets are either transferred back to the government or another concession is granted. Build-Operate-Transfer (BOT) is a variation on the full-concession model. Here the role of government is predominately regulatory. These are partial concessions that give responsibilities to private companies, but only for a portion of the water-supply system. Another arrangement is for the private contractor to build the water supply system anew. BOT models are usually used for water purification and sewage treatment plants. The private partner manages the infrastructure and the government purchases the supply. Ownership of capital facilities may be transferred to the government at the end of the contract or remain private indefinitely. For full and partial concessions, governments and companies are finding that responsibilities and risks must be defined in great detail in the contract since such contracts are for a lengthy period. Cases of concession contracts have led to vastly different outcomes for similar physical and cultural settings.
Different regions exhibit varying preferences for different contract forms. Concessions were adopted by France over 200 years ago. Recently, in Latin America and Southeast Asia, concession contracts have become a popular approach. BOT models have been popular in India for water and wastewater treatment plants. Lease and management contracts are popular in South Africa, and a few parts of sub-Saharan Africa. BOT management contracts are used for rare cases where the public sector is highly deficient in wastewater and sewage treatment such as in the cases of Jakarta, Mozambique, and Malaysia. In developing countries concession contracts are the most popular form of public-private partnerships, accounting for 44 percent of all partnerships from 1990-2001. See Table 4 for a division of contact types among developing countries.
One can simultaneously find evidence in support of or in opposition of public-private partnerships. Support for such partnerships is usually the result of improvements in financing, pricing, efficiency, risk distribution, environmental compliance, human resource management, and the services that public-private partnerships can provide. On the other hand, opposition typically arises from concerns over the economic implications of private participation, the power of corporate players, labor concerns, access inequality, envioronmental concerns, increased public risk, and inappropriate applications of private particpation. To read more, view Support and opposition of public-private partnerships.
Private governance is the opposite of government agency provision. It is extremely rare and is often modeled under a divesture system whereby the government transfers the water business to the private sector. This model has only been adopted in a small number of cases such as England and Wales (full divestiture) and Chile (partial divestiture). In developing countries divesture accounted for only 8 percent of all worldwide private participation from 1990-2001, and accounted for a total of 16 projects during the same period. Usually, the transfer occurs through sale of the shares or water rights of the public entity. As such, infrastructure, capital investment, commercial risk, and operations and management become the responsibility of the private provider.
Fully private businesses and entrepreneurs are already found where the existing water utility has low coverage or poor service. They may obtain water directly from a water utility, indirectly from the utility through customers who have utility service, or from private water sources. In some instances, early settlers of an area privately develop water systems and later settlers become customers to the early ones. Private providers may also serve higher income groups or businesses when water is scarce or inconvenient to obtain. At the largest scale, private water companies build, own, and operate water systems around the world with annual revenues of approximately $300 billion. At the smallest scale, private water vendors and sales of water at kiosks and shops provide many individuals and families with basic water supplies. Taken all together, the growing roles and responsibilities of the private sector have grown, but not without controversy.
This study has thus far provided an apolitical view of the water sector and the forms of governance available for managing water resources. However, the debate surrounding water governance is highly contentious and ideologically charged. To read more about physical, ideological, and international forces behind public-private partnerships, please view Drivers of public-private partnerships in water governance.
The current heated debate surrounding public-private partnerships often seeks to prove or disprove the benefits and costs of such governance arrangements. The above arguments can all be validated in fact, and thus there is no conclusive evidence favoring one form over the other. Thus these debates have been infertile. The debaters have failed to direct their efforts to the root causes of the costs or benefits related with public-private partnerships. The debates also fail to acknowledge that public-private partnerships are limited, only 5 percent of the world’s population receives its water services from private participation. As well, the debaters can find evidence in support of their ideologically-driven claims regardless of their position. The debaters have failed to recognize that many of the problems encountered with private participation can also arise with public utilities. Likewise, the debaters fail to recognize that the benefits encountered with private participation can arise with public utilities.
These debates have been unconstructive at achieving water provision goals. This was exemplified during the World Water Forum in March 2003, where discussions among the opponents and supporters of public-private partnerships led to no conclusive decisions or agreement between both sides. Dwelling on the public-private dichotomy has diverted attention from the roles each partner should play for constructive and effective partnerships to take place. The dichotomy also focuses on the broad political trends of neoliberalism rather then objectively looking at if, how, and when private participation is or is not appropriate. Discussions which are ideologically charged tend to overlook the misguided arguments of their own position. For example, many opponents resist private participation on the grounds that water is a human right. However, there is no inherent conceptual contradiction between private sector participation and the achievement of human rights. As well, the debates fail to recognize that neither public nor private utilities are well suited to serve the majority of low income or rural households who currently have inadequate water and sanitation and make up the appalling 1.1 billion and 2.4 billion figures offered in examples of the failure to provide water needs. Moreover, seeking universal dichotomous solutions to a complex and diverse issue such as water is a discussion which leads to no solution. Under the right circumstances, it may well be possible for private sector participation to improve efficiency and increase the financial resources available for improving water and sanitation services.
However, much depends on the way private participation is developed and the local context. There is a great danger in the international promotion of public-private partnerships through conditional development assistance and finance. Partnerships do not apply to all circumstances, to all developing countries, nor to all regulatory and political frameworks. Failure to recognize these facts on behalf of international financial institutions has lead to an application of partnerships in contexts to which they do not apply and has further fuelled the debate surrounding private participation. What is required in discussions surrounding water governance is a focus on the principals and standards which can make private provision work for the public good when it is chosen.
At the bottom of this governance debate lie two fundamental goals that all parties would agree must be reached: improving the water supply and protecting the public interest. Any form of water governance which does not achieve these two goals will not sufficiently resolve the water woes of today or the future. There are numerous cases of failures and successes from which lessons in governance can be learned, and principals and standards for effective governance can be derived. Since public-private partnerships are unlikely to disappear and are more likely to increase due to the driving forces mentioned in this paper, attention to the principals and standards for effective public-private partnerships should be granted in discussions between interested parties. Historically, this attention has been diverted to dichotomous debates over private participation, and change is called for. Gleick et al. have devised a set of excellent principals and standards for public-private partnerships based on the lessons learned from successful and unsuccessful cases. These principles and standards are repeated here as a starting point for more constructive discussions among interested parties.
Principal 1: Continue to Manage Water as a Social Good
Ultimately, water is vital to life, and certain water systems are of national strategic importance. Contract agreements to provide water services in any region must ensure that unmet basic human water needs are met first, before more water is provided to existing customers. Basic water requirements should be clearly defined by the contract. All residents in a service area must be guaranteed a basic water quantity under any form of governance. Moreover, basic water supply protections for natural ecosystems must be put in place for every region. These protections should be written into the contract agreement and should be enforced by the government. Finally, the basic water requirement for users should be provided when necessary for reasons of poverty. These subsidies should not be implemented universally, but when specific groups of people or industries require these subsidies to maintain basic survival.
Principal 2: Use Sound Economics in Water Management
The provision of water and water services should not be free. Water and water services should be provided at fair and reasonable rates, which should be discussed with the public transparently. Rates should be designed to encourage efficient and effective use of water. Whenever possible, proposed rate increases should be linked with agreed-upon improvements in service. Experience has shown that water users are often willing to pay for improvements in service when such improvements are designed with their participation and when improvements are actually delivered. As well, subsidies, if necessary, should be economically and socially sound. Finally, private participation agreements should not permit new supply projects unless such projects can be proven to be less costly than improving the efficiency of existing water distribution and use. When considered seriously, water-efficiency investments can earn an equal or higher rate of return. Rate structures should permit companies to earn a return on efficiency and conservation investments.
Principal 3: Maintain Strong Government Regulation and Oversight
The “social good” dimensions of water cannot be fully protected if ownership of water sources is entirely private. Permanent and unequivocal public ownership of water sources gives the public the strongest single point of leverage in ensuring that an acceptable balance between social and economic concerns is achieved. Thus, governments should retain or establish public ownership or control of water sources. Moreover, governments and water-service providers should monitor water quality. Governments should define and enforce laws and regulations. Clearly defined roles, responsibilities, and risk-sharing frameworks among partners, written in the contract, should be the prerequisite of any form of private governance. Government agencies or independent agencies should monitor, and publish information on water quality. Where governments are weak, formal and explicit mechanisms to protect water quality must be even stronger. All contracts must explicitly lay out the responsibilities of each partner. The contracts must protect the public interest which requires provisions of ensuring the quality of service and a regulatory regime that is transparent, accessible, and accountable to the public. Good contracts will include explicit performance criteria and standards, with oversight by government regulatory agencies and non-governmental organizations. Moreover, contracts and regulatory institutions must have clear dispute resolution procedures in place prior to engaging a private partner. It is necessary to develop practical procedures that build upon local institutions and practices which are free of corruption. During the bidding process all competing firms should be treated equally. Contract reviews by an independent body should be a requirement of all partnerships, thus avoiding acceptance of weak and unfavorable contracts. Thus, ambiguous contract language or inappropriate reviews of contracts can be avoided, and only sound contracts will be put in place. Finally, negotiations over private participation should be open, transparent, and include all affected stakeholders. Numerous political and financial problems for water customers and private companies have resulted from arrangements that were perceived as corrupt or not in the best interests of the public. Stakeholder participation is widely recognized as the best way of avoiding these problems. Broad participation by affected parties ensures that diverse values and varying viewpoints are articulated and incorporated into the process. It also provides a sense of ownership and stewardship over the process and resulting decisions.
In addition, Hall suggests that governments should always consider the public sector option before engaging a private partner. He recommends that the public option should be contracted and capability for reforms should be evaluated. The private proposal can then be evaluated against the public sector option, in a public and transparent process. During this process secret agreements and secrete contracts must be avoided and stopped. Considering and discussing these standards and principles is a starting point for constructive discussions among opposing parties in the public-private partnership debate.
The solution to the current and future water crisis will be found in changes to the way water is used and managed. Effective changes in water governance are the key to sustainable water management in the future. Physical, ideological, and international forces have encouraged public-private partnerships. Despite the promises of this form of governance, there have been gains and losses associated with its adoption. The current problems in governance structures cannot be ignored and a re-evaluation of the debate surrounding public-private partnerships is necessary. Future research and discussions should focus less on a dichotomous debate on partnerships and rather on a constructive debate on how, when, where and why public-private partnerships work. There is little research in the area of developing principles and standards for effective public-private partnerships. Public-private partnerships offer promise to the water sector as well as perils. The author recommends that future research efforts be channelled at developing effective standards for public-private partnerships in the water sector.
Sagarmatha National Park (27°45'-28°07'N, 86°28'-87°07'E) is a World Heritage Site which lies in the Solu-Khumbu District of the north-eastern region of Nepal. The park encompasses the upper catchment of the Dudh Kosi River system, which is fan-shaped and forms a distinct geographical unit enclosed on all sides by high mountain ranges. The northern boundary is defined by the main divide of the Great Himalayan Range, which follows the international border with the Tibetan Autonomous Region of China. In the south, the boundary extends almost as far as Monjo on the Dudh Kosi. The 63 settlements within the park are technically excluded as enclaves.
Created a national park on 19 July 1976 and inscribed on the World Heritage List in 1979.
114,800 hectares (ha). The park lies adjacent to the proposed Makalu-Barun National Park and Conservation Area (233,000 ha).
State. Many of the resident Sherpas have legal title to houses, agricultural land and summer grazing lands.
Ranges in altitude from 2,845 meters (m) at Jorsalle to 8,848 m, at the top of Mount Everest (Sagarmatha), the world's highest mountain.
This is a dramatic area of high, geologically young mountains and glaciers. The deeply-incised valleys cut through sedimentary rocks and underlying granites to drain southwards into the Dudh Kosi and its tributaries, which form part of the Ganges River system. The upper catchments of these rivers are fed by glaciers at the head of four main valleys, Chhukhung, Khumbu, Gokyo and Nangpa La. Lakes occur in the upper reaches, notably in the Gokyo Valley, where a number are impounded by the lateral moraine of the Ngozumpa Glacier (at 20 kilometers (km) the longest glacier in the park). There are seven peaks over 7,000 m. The mountains have a granite core flanked by metamorphosed sediments and owe their dominating height to two consecutive phases of upthrust. The main uplift occurred during human history, some 500,000-800,000 years ago. Evidence indicates that the upliftis still continuing at a slower rate, but natural erosion processes counteract this to an unknown degree.
On average, 80% of the annual precipitation occurs in the monsoon season from June to September and the remainder of the year is fairly dry. Precipitation is low as the park is in the rain shadow of the Karyalung-Kangtega range to the south. Annual precipitation is 984 millimeters (mm) in Namche Bazar, 733 mm in Khumjung and 1043mm in Tengboche. The climate of Namche Bazar can be classified as humid and tropical, based on the seasonal occurrence of rains, range in annual precipitation, number of rainy days per year and the length of the dry season. The mean temperature of the coldest month, January, is -0.4°C. Some 56% of years experience a tropical regime (summer rain), 35% are bixeric (two dry periods) and 1% are trixeric (three dry periods) or irregular.
Most of the park (69%) comprises barren land above 5,000 m, 28% is grazing land and nearly 3% is forested. Six of the 11 vegetation zones described by Dobremez for the Nepal Himalaya are represented in the park: lower subalpine, above 3,000 m, with forests of blue pine Pinus wallichiana, fir Abies spectabilis and fir-juniper Juniperus recurva; upper subalpine, above 3,600 m, with birch-rhododendron forest (Betula utilis, Rhododendron campanulatum and R. campylocarpum); lower alpine, above the timber-line at 3,800-4,000 m, with scrub (Juniperus spp., Rhododendron anthopogon and R. lepidotum); upper alpine, above 4,500 m, with grassland and dwarf shrubs; and sub-nival zone with cushion plants from 5,500 m to 6,000 m. Oak Quercus semecarpifolia used to be the dominant species in the upper montane zone but former stands of this species and Abies spectabilis have been colonised by Pinus sp. Rhododendron arboreum, R. triflorum, and yew Taxus baccata wallichiana are associated with pine at lower altitudes and shrubs include Pieris formosa, Cotoneaster microphyllus and R. lepidotum. Vine Parthenocissus himalayana and clematis Clematis montana are also common and other low altitude trees include maple Acer campbellii and whitebeam Sorbus cuspidata. Abies spectabilis occupies medium to good sites above 3,000 m and forms stands with Rhododendron campanulatum or Betula utilis. Towards the tree line, R. campanulatum is generally dominant. Juniperus indica occurs above 4,000 m, where conditions are drier, along with dwarf rhododendrons and cotoneasters, shrubby cinquefoil Potentilla fruticosa var. rigida, willow Salix sikkimensis and Cassiope fastigiata. In association with the shrub complex are a variety of herbs such as Gentiana prolata, G. stellata, edelweiss Leontopodium stracheyi, Codonopsis thalictrifolia, Thalictrum chelidonii, lilies Lilium nepalense and Notholirion macrophyllum, Fritillaria cirrhosa and primroses, Primula denticulata, P. atrodentata, P. wollastonii and P. sikkimensis. The shrub layer diminishes as conditions become cooler and above 5,000 m Rhododendron nivale is the sole representative of its genus. Other dwarf shrubs in the dry valley uplands include buckthorn Hippophae tibetana, horsetail Ephedra gerardiana, juniper J. indica and cinquefoil Potentilla fruticosa. Associated herbs are gentians, Gentiana ornata and G. algida var. przewalskii, edelweiss Leontopodium jacotianum and Himalayan blue poppy Meconopsis horridula. Above this and up to the permanent snow line at about 5,750 m, plant life is restricted to lichens, mosses, dwarf grasses and sedges and alpines, such as Arenaria polytrichoides and Tanacetum gossypinum.
In common with the rest of the Nepal Himalaya, the park has a comparatively low number (28) of mammalian species, apparently due to the geologically recent origin of the Himalaya and other evolutionary factors. The low density of mammal populations is almost certainly the result of human activities. Larger mammals include common langur Presbytis entellus, jackal Canis aureus, a small number of grey wolf Canis lupus (V), Himalayan black bear Selenarctos thibetanus (V), lesser panda Ailurus fulgens (V), yellow-throated marten Martes flavigula, Himalayan weasel Mustela sibirica, masked palm civet Paguma larvata, snow leopard Panthera uncia (E), Himalayan musk deer Moschus chrysogaster, Indian muntjac Muntiacus muntjak, mainland serow Capricornis sumatraensis (I), Himalayan tahr Hemitragus jemlahicus (K) and goral Nemorhaedus goral. Sambar Cervus unicolor has also been recorded. The tahr population is estimated to total at least 300 individuals. Both goral and serow appear to be uncommon. Results from recent surveys suggest that populations of both tahr and musk deer have increased substantially since the park was gazetted and could lead to a recovery in the snow leopard population, probable signs of which were seen in the Gokyo Valley. Smaller mammals include short-tailed mole Talpa micrura, Tibetan water shrew Nectogale elegans, Himalayan water shrew Chimarrogale himalayica, bobak marmot Marmota bobak, Royle's pika Ochotona roylei, woolly hare Lepus oiostolus, rat Rattus sp. and house mouse Mus musculus.
Additionally, there are 152 species of birds, 36 of which are breeding species for which Nepal may hold internationally significant populations. The park is important for a number of species breeding at high altitudes, such as blood pheasant Ithaginis cruentus, robin accentor Prunella rubeculoides, white-throated redstart Phoenicurus schisticeps, grandala Grandala coelicolor and several rosefinches. The park's small lakes, especially those at Gokyo, are used as staging points for migrants and at least 19 water bird species have been recorded.
A total of six amphibians and seven reptiles occur or probably occur in the park. Documentation of the invertebrate fauna is limited to common species of butterfly. Of the 30 species recorded, orange and silver mountain hopper Carterocephalus avanti has not been recorded elsewhere in Nepal, and the common red apollo Parnassius epaphus is rare.
The Sherpas are of great cultural interest, having originated from Salmo Gang in the eastern Tibetan province of Kham, some 2,000 km from their present homeland. They probably left their original home in the late 1400s or early 1500s, to escape political and military pressures, and later crossed the Nangpa La into Nepal in the early 1530s. They separated into two groups, some settling in Khumbu and others proceeding to Solu. The two clans (Minyagpa and Thimmi) remaining in Khumbu are divided into 12 subclans. The introduction of the potato to Khumbu in about 1850 revolutionized the economic life of the Sherpas. Until then, the high-altitude Sherpas had lived mainly on barley. Both the population and the growth of the monasteries took a