Some closing remarks Jef Caers Stanford University Stanford

Some closing remarks Jef Caers Stanford University Stanford, California, USA

Research in economic downturn � What to do ? �You do nothing different �You take action (cut) �You take the opposite action (change & invest) � Even Stanford University has fallen in the trap of short term thinking: “When I last spoke to you in January via Stanford Report, the investment climate was difficult. You have all seen the worsening activity in recent weeks” Provost, March 9 -09 Since when is Stanford’s planning in terms of weekly fluctuations ?

Global recession or global panic? �Swine flu: � 36000 die of the flu each year � 50 swine flu cases reported so far in the US, nobody died �So: why aren’t you all wearing your surgical masks year round? �Let’s not underestimate our ability to panic ! Panic !!

What is the benefit of research? �Only costs are discounted �Potential benefit is never “discounted” or “prorated” �Cutting research = easy cost-cut = potential future loss Oil Company X Oil produced per day: 3 million barrels Oil price = $60. 0 /barrel Sponsor the 10 most critical research consortia in the world: cost = $500. 000 Change in Oil price needed per barrel to offset this cost: 0. 0004 cents Change in Oil price needed per barrel to offset the cost of drilling 1 more dry exploration wells per year: 4 cents

What are our new investments? � Closer collaboration on data and projects with companies �ENI project Tetris �Celine’s sponsoring by Chevron and project with Yuguang Chen on direct modeling of flow grid �Data from Total, Wintershal, Shell and Marathon � Software �Continued investment in S-GEMS �Open-source plug-ins to Petrel-Ocean 2009 � Availability of MPS � Availability of flow simulation � Availability of writing plug-ins

New focus �Rock physics and seismic modeling �Basin modeling �Groundwater management �Geological modeling/Process modeling

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