Since energy is vital for development, cutting down on waste is the starting point, writes Salah Hafez* Proper management of waste to optimise resources is an enormous added value to the GDP of any country. This may entail a minimum investment when compared to conventional methods of augmenting GDP through injecting new funds in green fields. Both approaches are required, but managing waste is more urgent because it disguises the magnitude of economic problems -- making the solution more difficult to identify. Waste is ubiquitous and rampant in all aspects of life. Energy, for one, is used excessively to generate a unit of product, transport goods or passengers per kilometre, or to provide lighting indoors and outdoors. Potable water is another resource which is wasted from the time it is treated until the end of its cycle in sewage. The underground piping system is one of the principal culprits of wasting potable water, with an estimated 40 per cent loss in old and badly maintained pipelines in most of Egypt's main cities. Another cause is badly manufactured plumbing parts such as flushers, faucets and pipes, which create much waste even before the water is turned on. And lastly, waste in homes, government offices, public and private gardens, garages, etc, is outrages. Energy is heavily subsidised, especially primary sources such as gasoline and diesel. In a country which is a net importer of liquid hydrocarbons, this makes the problem more pressing. Potable water is also subsidised, to the extent that the price paid per cubic metre of water is much less than the cost of building and operating a water plant. Meanwhile, international oil prices have been rising for some time, apparently as a genuine result -- for the first time in years -- of the supply and demand dynamic. To a much lesser degree, this is also due to political unrest. Some experts believe in the theory of peak oil, which speculates that the world is about to reach the peak production rate of 95 million barrels oil per day (BOPD) by the end of this decade. This theory was conceived after a rapid decline in production which began to occur in most major oil fields around the world, and the slow replenishment of world reserves. Demand for oil worldwide is predicted to reach 120 million BOPD by the year 2030. The main reason for this increase is due to the high rate of growth in China and India, the burgeoning standard of living of the middle class worldwide, and the growth of developing countries. This gap will inevitably have to be filled in order for the world to continue developing, especially Third World countries. The solution to this dilemma is multifold and all countries, separately and collectively, have to work on multiple fronts. Solutions include more investments for exploration and expediting discoveries around the world; developing technology for renewable energy sources, nuclear fusion and biofuels; and managing rampant waste in energy consumption, as well as developing energy efficiency programmes at the local and international level. In order to maintain energy supplies in Egypt, many energy strategies have to be revised to guarantee continued availability from local and regional sources in Africa and the Middle East. We need to work on turning Egypt into the main hub of energy supply to Europe, and to tap into resources available in the Middle East and Africa. The use of renewable energy sources should also be looked at closely and expanded, especially in a country where such resources are readily abundant. Biofuel can also be considered since some of the required components are available locally. But more immediately, it is important to embark on a national programme to institutionalise the concept of energy efficiency. While time is of the essence, some steps have already been taken to start a plan of efficient energy use, especially with the availability of finance through Clean Development Mechanism (CDM) programmes. CDM financially compensates projects which result in the reduction of carbon dioxide emissions, and hence saving on fossil fuel. At the same time, more Energy Service Companies have to be established to address this issue, and to train engineers to become certified in professionally dealing with this strategic objective. One of the best mottoes on the energy problem that I have seen recently was advertised by Shell: 'Say No To No', or be negative to negativity. People tend to take vital issues lightly and abort good ideas upfront, but this attitude could only result in wasted opportunities to solve pressing worries. With a more positive attitude and some determination on our part, the energy problem could be categorically resolved and our development programmes achieved. * The writer is former CEO of the Egyptian Environmental Affairs Agency (EEAA), former vice- chairman of the Egyptian General Petroleum Corporation (EGCP) for Exploration and Petroleum Agreements and presently chairman of Petzed, a petroleum exploration and production company.
