UNIT 3

THE SECONDARY
SECTOR

TABLE OF CONTENTS
1 THE SECONDARY SECTOR ................................................................................................................2
2 MINING RESOURCES IN THE WORLD AND SPAIN .............................................................2
3 ENERGY PRODUCTION ........................................................................................................................3
3.2 Alternative sources of energy ............................................................................................................................................................ 4
4 INDUSTRY: EVOLUTION, CURRENT INDUSTRY AND INDUSTRIAL AREAS ..........4
4.1 Historical development: the Industrial Revolutions ......................................................................................................... 4
4.2 Types of contemporary industry ...................................................................................................................................................... 5
4.3 Industrial areas and landscapes ................................................................................................................................................... 5
4.4 The world’s industrial areas today................................................................................................................................................. 6
5 THE SECONDARY SECTOR IN SPAIN ..........................................................................................7
5.1 Mining ....................................................................................................................................................................................................................... 7
5.2 Energy production ....................................................................................................................................................................................... 7
5.3 Industry ..................................................................................................................................................................................................................... 7
5.4 Construction ....................................................................................................................................................................................................... 8

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 The secondary sector is the sector of economy which includes the activities concerned with the
transformation of raw materials into products that enable human needs to me met. The main activities
of the secondary sector are mining, industry, energy production and construction. Industry is the most
significant of the activities, so we are going to focus on its history and evolution and its spaces (industrial
spaces).

Mining is the economic activity concerned with locating, extracting and refining rocks and minerals
found in the Earth’s crust (on its surface [open pit mining] or beneath its surface [mine site or mine shaft]),
and used later in industrial processes or in energy production. We do not link mining with the primary
sector because they never produce natural resources which can be directly used for consumption.
Mineral sources can be classified as follows:
- Industrial rocks:
1) Energy rocks or fossil fuels (coal, oil and natural gas), used to produce energy.
2) Useful rocks (limestone, marble, clay, salt…), used mainly in construction.
3) Precious stones (diamonds, emerald, ruby, sapphire…), used in jewellery.
- Minerals:
1) Useful minerals (iron, copper, lead…), used mainly in construction, armament and
technological products.
2) Precious metals (gold, silver, platinum…), used mainly in jewellery.
3) Strategic minerals (uranium, coltan, cobalt...), used mainly in energy production,
armament and technological products.

Because of the uneven distribution of natural resources in the world, some of the products
obtained in mining determine the economic profile and possibilities of certain countries, either by their
presence or by their absence (dependency).
The most relevant examples are the sources of energy, such as coal, oil and natural gas, but
precious metals and strategic minerals are also very important.
The countries with the most mineral resources are:
1) China: coal, gold and iron.
2) United States: natural gas, coal and iron.
3) Australia: gold, iron and lead.

Mines can cause a variety of problems for the people who work in them and also because of their location:
- Changes to the land, on the surface and underground. Currently, the system called fracking
(hydraulic fracturing), used for oil extraction, is one of the most aggressive.
- Atmospheric and water pollution. It is created due to the harmful chemicals that are used to
extract the minerals and also because the burning of gas and oil during the extraction process (air
pollution). Also, the refining process pollutes greatly the atmosphere and the waters, as we will
see further in the unit.
- Destruction of natural space, causing a great impact on the vegetation and wildlife.
- Conflicts due to the exploitation of the resources: from the Coltan War in Congo; the so-called
‘Blood Diamond’ in countries such as Ivory Coast, Sierra Leone and Liberia; the expulsion of natives
from their lands in Ecuador; to conflicts fuelled by oil in the Middle East (Iraq, Syria, etc.).

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 Energy production transforms energy sources into heat and electricity, which allows all economic
processes to be undertaken, from industrial production to technology consumption. Energy sources are
those that can produce light, heat and power to move different types of machinery, and can be classified
depending on their capacity to be naturally renewed and their degree of development.
- Depending on their natural capacity for renovation:
o Renewable: they are inexhaustible. The most important are solar energy, wind power,
geothermal, tidal and wave, hydroelectric or biomass.
o Non-renewable: they become exhausted through constant use, or it takes a very long time
to be renewed. The main forms of non-renewable are thermal (coal, oil and natural gas)
and nuclear (atomic fission and atomic fusion).
- Depending on their degree of development:
o Traditional: well-established and widely used. It includes coal, oil, natural gas, hydroelectric
and nuclear fission power.
o Alternative: they have been developed as alternative of the traditional sources of energy.
The general idea is the advance towards cleaner, more renewable, less pollutant and less
waste-generating energy production. Also, their impulse has been determined by the
uneven distribution of traditional resources, reducing dependency from other countries.
However, their use is conditioned by technological limitations or by their price. It includes
solar energy, wind power, geothermal, tidal and wave, biomass and nuclear fusion power.

TRADITIONAL SOURCES OF ENERGY

TYPE ORIGIN, EXTRACTION AND USES PROBLEMS PRODUCERS
Mixture of hydrocarbons found in underground
Limited reserves (40 Russia, Saudi Arabia,
deposits formed by decomposition of animals and
years). USA, China, Iran,
plants.
High level of pollution Mexico, Venezuela.
CRUDE OIL Obtained by drilling the surface into an underground
in extraction and OPEC (Organization
reservoir.
processing. of Petroleum
In addition to source of energy, also used as
Exporting Countries)
industrial raw material (tar, paints, plastic, etc.)
Limited reserves (65
years).
Same origin as oil, and obtained in a similar way. Russia, USA,
High level of pollution
NATURAL GAS Used for producing electricity, and pipped gas for
in extraction and
Canada, Iran,
heating systems and kitchens. Norway and Algeria.
processing, but less
than oil.
Combustible mineral produced by the
Relatively abundant
decomposition of plant remains buried
reserves.
underground. China, USA, India
COAL Used in power stations for producing electricity, for
High level of pollution
and Australia.
in extraction and
manufacturing iron and steel and for making
processing.
chemical products.
Criticised for modifying
Obtained from water contained in a reservoir (dam),
the environment Canada, USA, Brazil,
HYDROELECTRIC which moves turbines that generate electricity in
(changing river China and Russia.
hydroelectric power stations.
courses, etc.)
It can be dangerous
Electricity is obtained through the separation
NUCLEAR (nuclear accidents) and USA, France and
(fission) of the atoms of radioactive heavy minerals
FISSION produces highly Japan.
(uranium, for instance).
polluting waste.
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 ALTERNATIVE SOURCES OF ENERGY
TYPE ORIGIN, EXTRACTION AND USES PROBLEMS PRODUCERS
Derived from the Sun’s light and heat. Its force Irregular supply, and
USA, Canada and
SOLAR ENERGY is concentrated by using panels, providing heat impossibility of storage.
Australia.
or electricity.
Irregularity of the supply,
Wind moves generators which provide Germany, Spain and
WIND ENERGY electricity.
and visual and acoustic
USA.
impact of the turbines.
Organic materials (wastes from the primary
BIOMASS CO2 emitted during the USA, France and
sector or industrial processes) are burnt in order
ENERGY combustion. Sweden.
to provide heat and electricity.
TIDAL AND The force of the tides and the waves move High production costs. France, United
WAVE POWER turbines which produce electricity. Visual impact. Kingdom and Canada.
Derives from the internal heat of the Earth,
GEOTHERMAL Restricted to areas with USA, Philippines and
providing heat and electricity (through
ENERGY seismic activity. Mexico.
turbines).
NUCLEAR Large amounts of energy can be obtained with Technological limits.
the union (fusion) of low-mass atoms of Very high temperatures,
FUSION Deuterium and Tritium (hydrogen isotopes and control of nuclear
----
ENERGY obtained from sea water). reactions.

Industry is the most important activity of the secondary sector, and comprises the transformation
of raw materials into manufactured (semi-finished or finished) products. Industrial activities need the
factors of production, that is, the inputs required to produce an output:
- Natural resources
o Raw materials: biological or mineral.
o Sources of energy.
- Capital: physical, financial and human.
- Technology: combination of knowledge, methods and procedures.
The evolution of industrial activities have changed greatly over time, and the different stages of the
Industrial Revolution(s) are going to be linked with changes in the sources of energy and the technology.

- Artisanal industry (until the 18th century): artisans worked in workshops inside the cities (grouped
into guilds, and located in the same street), and undertook industrial labour by hand using
traditional tools (manual work) and low-power energy sources, such as human or animal strength
and wood burning. The final products were unique, expensive and scarce, and they were to be
sold in local markets. The main type of manufactures were textiles, shoes and everyday items.
- First Industrial Revolution (1770-1850): fuelled by scientific advances (most importantly, the
steam engine), Great Britain saw the emergence of modern industry. Factories housed both the
workers and the machinery, which was coal-powered. This new industrial mechanised labour was
focused on textiles and metals (iron), and the products were homogeneous, cheaper and
abundant. Industrial areas were created near energy sources (coal deposits) and ports for the
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 distribution of the products to distant markets. Some problems appeared because of the poor
working conditions, the concentration of workers in cities (urban growth of cities such as
Manchester and Birmingham) and the pollution caused by the burning of coal. After Great Britain,
countries such as France and Germany followed.
- Second Industrial Revolution (1850-1950): oil and electricity were the energy sources behind the
Second Industrial Revolution. The petrochemical industry, the combustion engine and the
assembly line production are the basic characteristics. Consumer goods industries focused on the
automobile and electrical household appliances, and the production of chemicals, iron and steel
were also very relevant. The pivotal centre was the USA, and industrial spaces were concentrated
around cities, in the outskirts.
- Third Industrial Revolution (1950 onwards): also known as information and automation
revolution. Nuclear energy first, and then alternatives sources of energy were used along coal and
oil. Electronics and microelectronics, information technologies and biotechnology emerged, which
means that knowledge and information (scientific research and development) have become the
major industrial factor, and automatized labour has become widespread. Industries have divided
their locations, and while research, innovation, design, quality control, etc. have moved to new
areas such as technology parks and high-tech hubs (Silicon Valley, for example), production has
been offshored to developing countries.

Industries can be classified according to the following criteria:

- According to their position in the production process:
o Heavy industry: production of semi-finished products (iron and steel industries, for
instance). Highly pollutant.
o Capital goods industry: transformation of semi-finished products into equipment needed
by other industries (machinery, industrial equipment, etc.) or for transport and
construction.
o Consumer goods industry, intended directly for consumers.
- According to the weight of the raw materials: heavy (large quantities of heavy, raw materials),
semi-heavy and light industries.
- According to its technology: low technology (traditional, such as textiles), mature (that has
achieved the maximum technological development, such as metalwork and car industry) and high-
tech industry (still undergoing major expansion, such as in telecommunications and
biotechnology).

Traditional industry had as its objective to produce the biggest yield at the lowest cost, so they did not
take into consideration the pollution that was produced or the working and living conditions of the
workers. Therefore, industrial areas have had a great impact on the landscape, both natural and human.
The historical evolution of the industrial processes have created certain landscapes which depend on the
type of industries, the locations, etc. The modernisation of industrial activity and globalisation have
together led to profound changes in location:
- Traditional factors. The most significant are:
o Proximity to raw materials and energy sources
o Proximity to market centres and consumption
o Proximity to ports and transport routes
o Abundance of low-skilled labour and source of capital.
- Current factors. Profound changes in production, the high level of technology and global

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 competition are important aspects. Nowadays, the main factors are:
o Accessibility to raw materials and energy sources.
o Abundance of cheap labour or highly-skilled workers.
o Economic policies: the willingness of government to make things easier in terms of
location, financing, innovation, regulations and pollution requirements.

The traditional industrial centres have been changing or merging with new ones, depending on the
changes that have occurred in industry.
- Original industrial areas: Location was determined by the abundance of coal and iron, and the
proximity to ports and navigable rivers, and cities boomed because of the amount of workforce required.
We can outline as the most important areas: centre of England (Manchester or Liverpool), centre of
Germany (Ruhr mining area), north of France (Lille) and the Eastern part of the USA (Detroit or
Pittsburgh). After the 1970s, after they suffered a crisis (deindustrialisation and offshoring of heavy
industries) they reconverted through closures or by implementing changes to production and the
workforce –they went from heavy industries carried out by low-skilled to light and high-tech industries
with skilled workers.
- Contemporary industrial areas: the offshoring of industries and the use of less polluting energies,
among other factors, have created some industrial landscapes in the developed countries. However,
some of the problems derived by the presence of heavy, high-polluting industries have been transferred
to other parts of the world.
o Centres for advanced technology: in the most developed countries, with abundance of
qualified workers, investment in research and development, means of transportation, etc.
Silicon Valley, in the USA, is the paradigmatic example of these.
o High-tech industries: these have emerged in the last 30-40 years. They receive modern
industries with advanced electric development and innovation, and consumer goods. We
find them in the USA, Canada, Mexico, South Africa, Australia and especially East and
Southeast Asia (China, South Korea, India, Taiwan…).
o Industrial parks or industrial estates: located outside of urban centres, they combine light
industries and office buildings.
o Mature or low-technology industries: located in emerging or underdeveloped countries, as
they require an abundant but relatively unqualified and low-cost labour force. These areas
often provide concessions that encourage industries to move there (to offshore
production), such as duty-free zones and permissive environmental legislation.

 HISTORICAL INDUSTRIAL REGIONS (Triad)

o Advanced technology  High-tech and innovative industry.
o Loss of many industries (heavy, textiles, automotive, etc.) due to offshoring.
o Abundance of qualified workers.
o High-spending capacity of local markets.
 EMERGING COUNTRIES (BRICS, Australia, New Zealand, South Korea, Mexico, etc.)
o Highly developed and growing industrialisation due to the exploitation of their natural
resources and globalisation (offshoring, cheap labour, etc.).
 LEAST INDUSTRIALISED
o Poorest countries of the world.
o Limited industrialisation due to lack of natural resources, capital for industrial
development, limited markets, poor communications, etc.

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 Spain has historically been a country with one of the richest tradition of mining (gold, silver,
mercury, coal…), but today the mining industry has almost completely disappeared. This is due either to
the drying up of the deposit (as in other parts of Europe) and to the high extraction costs. From the 1980s,
mines have closed or have reduced their activity because it is cheaper to import the resources than to
produce them.

Spain’s energy production is divided into local energy supplies and imported energy supplies. The
former is mostly based on renewable energies such as hydroelectric, solar, wind and biomass. Moreover,
nuclear energy is very important, and is generated at seven nuclear power stations with uranium imported
from Niger. Coal extraction used to be very important, but there has been a continuous mining crisis since
the 1980s because of the high extraction costs. However, some major mines are still working, mostly in
Asturias, León and Palencia.
The almost complete lack of oil and natural gas imply that Spain depends on external sources,
which implies a great obstacle for the trade balance (difference between imports and exports) of the
country. In addition to this, energy consumption is based on these non-renewable traditional sources. Oil
is imported mostly from the Middle East and Nigeria, and natural gas from Algeria (about a 55 %), other
European countries (16 %), Qatar (9 %), etc.

The industrialisation of Spain begun late in the 19th century, mostly focused in Huelva (mining),
Basque Country (iron and steel industries, as well as mining) and Catalonia (textiles). The degree of
industrialisation was low until the 1960s, after the isolation of the early years of Franco’s dictatorship. The
combination of these factors, as well as the lack of raw materials, have caused that industrialisation has
developed unevenly, with some areas with very little importance of this activity.
Traditionally speaking, Spanish industries have been shipbuilding, metallurgy, textiles, leather and
shoe manufactures, furniture and toys. Some of these have been suffering a serious decline from the
1980s due to higher production costs, the offshoring of industries and global competition.
The most dynamic industries in Spain are currently the automobile, chemical and food production
industries, while high-tech industries are undergoing attempts of development, delayed by the
dependence on foreign research and technologies and the lack of investment.

The main industrial areas of Spain are Madrid and Barcelona, both cities providing location for
offices and facilities of major national and multinational companies and industries which focus mostly on
new technologies.
Then, there are some industrial axes, mostly along the Mediterranean coast from Murcia to Girona
and along the river Ebro from La Rioja to Tarragona. In a second rank of importance, there are industrial
axes in Castilla-La Mancha surrounding Madrid, and along the Tordesillas-Valladolid-Palencia motorway.
The Cantabrian coast, on the other hand, is a traditional industrial axis with important centres such as
Vigo, A Coruña, central Asturias, Torrelavega and Santander in Cantabria and the Basque Country, and it
is undergoing a process of crisis and reconversion of its traditional heavy industries. The rest of the
peninsula (Andalucía, Extremadura, great areas of both Castillas, etc.), the archipelagos and the
autonomous cities of Ceuta and Melilla have little or very little industrial activity.

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 Construction is the economic activity of the secondary sector in charge of projecting and building
different structures (housing, industrial buildings, etc.) and infrastructures. There are many branches of
construction, being small renovations the majority of the activity.
Historically speaking, construction has been concentrated on the following functions: residential
(houses), religious (churches, cathedrals, etc.), military (castles, military barracks, etc.) and civil works
(town halls, universities, etc.). However, as the needs of industries and urban life changed, construction
became more diversified, with some infrastructures such as ports, airports, highways and canals gaining
importance.
The importance of this activity in Spain’s economy has been massive, both directly and indirectly.
The 2008 crisis affected construction greatly, stopping temporarily the so-called ‘real estate bubble’. This
led to a great economic recession, with very high unemployment figures, reduction of private and public
expenditure, the increase of the country’s debt, etc.

Secondary sector
Mining
Energy production
Renewable sources of energy
Non-renewable sources of energy
GLOSSARY
Traditional sources of energy Second Industrial Revolution
Alternative sources of energy Third Industrial Revolution
Industry Construction
Artisanal industry
First Industrial Revolution

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 REVISE
1. Create a table comparing the origin, uses and problems raised by the different energy sources:
oil, natural gas, coal, hydroelectric, nuclear fission, solar, wind, biomass, geothermal and wave
power.

2. Comment the following statistical table related with the production and consumption of fossil
fuels by regions of the world in 2008. Use the maps and graphs in the presentation of the unit
for helping your analysis.
a. Description of the table:
i. What is the table about?
ii. What is shown in the vertical axis? How is it divided? Is there anything worth
mentioning?
iii. What is shown in the horizontal axis? How is it divided?
b. Interpretation of the data:
i. Are there large positive differences between the ‘produced’ and ‘consumed’
amount in each of the elements? In what cases? What reasons can you find for
those differences?
ii. Are there large negative differences between the ‘produced’ and ‘consumed’
amount in each of the elements? In what cases? What reasons can you find for
those differences?
iii. Why do you think that the vertical axis is organised the way it is? What criteria
does it follow?
iv. In the ‘world total’, how are the data of each of the categories of the horizontal
axis?
c. Conclusion: why is this table relevant?

COAL OIL NATURAL GAS

PRODUCED CONSUMED PRODUCED CONSUMED PRODUCED CONSUMED
North America 638,4 606,9 619,2 1076,6 740 751,2
C. & S. America 55,5 23,3 335,6 270,3 143 128,7
Europe and Eurasia 456,4 522,7 851 955,5 978,6 1029,6
Middle East 0,5 9,4 1253,7 306,9 343 294,4
Africa 143,4 110,3 488,1 135,2 193,3 85,4
Asia 2030,7 2031,2 381,2 1183,4 370,1 436,8
WORLD TOTAL 3324,9 3303,7 3928,8 3927,9 2768 2726,1
Source: Statistical Review of World Energy, 2009.

3. Read the text and answer the questions:

“The change in international location of industrial activities […] has been the consequence of increasing
economic globalisation; or in order words, of the growing foreign and domestic competition within
national markets, the rapid expansion of large economies which offer important advantages for industries
and, finally, the possibilities provided by computer technology with regard to structuring production
processes.
These three factors have led the main multinational companies to channel their investments into
emerging industrial economies […] and close down operations in more developed countries. This is a
phenomenon known as offshoring.
As a result of this process, the national economy loses a market with regard to certain activities and areas,
which are subsequently taken over by another country, and this also leads to a decrease in employment
in the sector affected”
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 a. What is ‘offshoring’? Look for its definition, and then explain with your own words.
b. Where were industries located during the First and Second Industrial Revolutions?
What factors were taken primarily into account?
c. What factors make offshoring possible? Why do companies offshore their production?
See also unit 1.
d. What consequences does offshoring have for the labour force of developed areas? And
for their industrial landscapes?
e. What consequences does it have for the less developed areas where industries are
offshored?

4. Compare the following industrial landscapes.

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 5. Copy the table in your notebook, and complete it with the information about the historical
evolution of the industries and the Industrial revolutions.

FIRST INDUSTRIAL SECOND INDUSTRIAL THIRD INDUSTRIAL

REVOLUTION REVOLUTION REVOLUTION
CHRONOLOGY
TYPES OF INDUSTRIES
TRANSPORTS AND
COMMUNICATIONS
SOURCES OF ENERGY
LOCATION

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 TEXT - BP dropped
green energy projects
worth billions to focus
on fossil fuels
Oil firm invested billions of
pounds in clean and low-
carbon energy in the 80s and
90s but later abandoned
meaningful efforts to move
away from fossil fuels and
locked away the research.
Terry Macalister. The Guardian. 16 April 2015

BP pumped billions of pounds into low-carbon technology and green energy over a number of decades but
gradually retired the programme to focus almost exclusively on its fossil fuel business, the Guardian has
established. At one stage the company was spending around $450m (£300m) a year on research alone - the
equivalent of $830m today.
The energy efficiency programme employed 4,400 research scientists and R&D support staff at bases in
Sunbury, Berkshire, and Cleveland, Ohio, among other locations, while $8bn was directly invested over five
years in zero- or low-carbon energy. But almost all of the technology was sold off and much of the research
locked away in a private corporate archive.
The company, which once promised to go “beyond petroleum”, will come under fire both inside the Annual
General Meeting and outside from some shareholders and campaigners who argue BP is playing fast and loose 1
with the environment by not making meaningful moves away from fossil fuels.
In 2015, BP will spend $20bn on projects worldwide but only a fraction will go into activities other than fossil
fuel extraction.
An investigation by the Guardian has established that the British oil company is doing far less now on
developing low-carbon technologies than it was in the 1980s and early 1990s. Back then it was engaged in a
massive internal research and development (R&D) programme into energy efficiency and alternative energy.
The company was doing ground-breaking work into photovoltaic solar panels, wave power and domestic
energy efficiency as part of a wider drive to understand how greenhouse gas emissions could be curbed. Two
houses on the site at Sunbury were used in experiments. One was retrofitted with special insulation, ground
source heat pumps and other systems which have now become mainstream.
“All the reports that we produced were filed away and contain a huge mass of information. We had been
researching alternative energies for years going back to the early 1980s,” said one senior scientist involved in
the BP programme.
A major cost-cutting drive in 1993 forced the end of R&D as a standalone department. It was reduced in scale,
merged with the engineering department and told to concentrate on oil and chemical research.
A spokesman for BP insisted that the company was now spending $660m on research, half of that in-house2
at locations such as Sunbury and he denied that any energy efficiency drive was being wound down. 20% of
R&D is still said to be going towards “a low-carbon transition”. But he accepted that the company had
retreated from renewable energy, saying it was up to others to do that work.
Greenpeace said it was time that BP handed over all the research it had gained from its decades of work. “By
keeping this wealth of research under lock and key BP is putting narrow corporate interests before humanity’s
hopes to tackle one of its greatest challenges”, said a spokesman.
“BP could score a PR victory by releasing this information, in the same way that Tesla released some of their
energy patents to boost innovation in the sector. Not pursuing its clean energy project might have been a

1
Inconstant and unreliable.
2
Internal
12
missed opportunity for BP, but the rest of us can’t afford to make the same mistake”.
As recently as 2003 the then-chief executive John Browne appeared to see a bright future for a low-carbon
energy group, bringing in Ogilvy & Mather to launch a $200m rebranding campaign. BP introduced its new
slogan “Beyond Petroleum” and changed its 70-year-old, shield-style logo to a more upbeat and eco-friendly
green and yellow sunburst.
Six years earlier Browne had differentiated himself from his rivals by leaving the main industry body
campaigning against carbon controls, the Global Climate Coalition, instead talking openly of the threat caused
by global warming. By 2007 Browne had left the company to his successor Tony Hayward who closed down BP
Solar in 2011, on the grounds that it did not make money.
“The continuing global economic challenges have significantly impacted the solar industry, making it difficult
to sustain long-term returns for the company, despite our best efforts,” BP said in an internal letter to staff at
the time.
In 2013, under an even newer chief executive, Bob Dudley, all the wind farms which at one stage were located
in nine different American states and produced 2,600 megawatts were put up for sale. BP failed to find a buyer
and continues to hang on to them. The company also retains a Brazilian biofuels business but has halted all
work on carbon capture and storage. BP continues to invest in carbon-heavy tar sands operations as well as
its traditional oil and gas fields and yet it accepts that some reserves will have to remain in the ground to beat
global warming.
“We agree that burning all known (fossil fuel reserves) would raise global temperature by more than 2C and
that potential greenhouse gas regulation to prevent this from happening could reduce the value of some
reserves and the companies that own them,” said the spokesman. But it says that 56% of its exploration and
development activities are now based on gas as opposed to oil.
BP also argues that it is working hard to promote and develop biofuels, has an intensive energy efficiency
programme in place and factors in a carbon price of $40 to all its projects. It says it addresses potential climate
impacts at the design phase.
A major group of shareholders have called on the company to address climate change more robustly through
a resolution to be heard at the AGM.
BP management says it supports the resolution but ultimately believes that politicians must take primary
responsibility for tackling global warming and hastening in a low-carbon future. “It is clear that it is the role of
governments and regulators to set the boundary conditions for the policy framework which is needed to bring
about this transition. BP’s role is to develop its business within that framework,” the spokesman added.
Suzanne Dhaliwal from the UK Tar Sands Network said support for the AGM resolution looked hollow when
the company was still engaged in carbon-heavy extraction activities. “It looks like a stalling mechanism to get
large shareholders on board but from a grass roots level commitments to tackling climate change and
continuing with tar sands are incompatible.”
Many leading environmentalists such as Jonathan Porritt and Bill McKibben believe fossil fuel companies will
never play a leading role in any move to a low-carbon economy. McKibben says: “BP’s ‘beyond petroleum’
shtick was one of the great PR3 moves of all time, but it never amounted to anything – nor will the pious purring
noises they’re making now,” he argues. “If they want to lead they’ll pledge to stop looking for new
hydrocarbons. I’m guessing they won’t, and that we will need to fight them every step of the way.”

1. Check the following link, and answer:

http://en.wikipedia.org/wiki/List_of_countries_by_carbon_dioxide_emissions#List_of_countries_by_2013
_emissions_estimates
What is the importance of developed countries in CO 2 emissions?
2. “Politicians must take primary responsibility for tackling global warming and hastening in a low-carbon
future” Do you agree with this statement? Why?
3. What problem did the research programme for low-carbon energy face when it was suspended?
4. What are the advantages and disadvantages of renewable alternative sources of energy?
5. What are the advantages and disadvantages of fossil fuels as sources of energy?
6. What are the necessary conditions, in your opinion, that should be met in order to be able to change
from fossil fuels to zero or low-carbon energies?

3
Public relations
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