Integrating Climate into our Strategy - 15 Taking Positions in Competitive Resources The reserves that have already been discovered, and even more so those yet to be found, will not necessarily be fully developed. Whether or not they can be will depend on a number of factors: demand, production conditions (profitability, political context and environmental issues), as well as carbon pricing. The IEA puts oil demand over the period 2014-2035 at 690 billion barrels. Although discovered reserves currently stand at approximately 1.7 trillion barrels, the agency believes that about one-third of demand over the next two decades will be met by fields yet-to-be developed or yet-tobe found. Mb/d The 2°C scenario means that oil companies need to allocate their investments to assets that will be competitive — in other words, with reasonable costs. Breakdown of Global Oil Production Under the 2°C scenario Other unconventional oil Light tight oil NGLs Enhanced oil recovery Crude oil Fields yet-to-be found Fields yet-to-be developed Currently producing Source: IEA – World Energy Investment Outlook 2014. In the next two decades, around one-third of demand will be met by yet-to-be developed or yet-to-be found fields. Carbon Capture, Use and Storage The 2°C scenario also includes a significant ramp-up in the coming decades of carbon capture, use and storage (CCUS) technologies, which will be needed to achieve carbon neutrality in the second half of the century. Total has long been committed to developing CCUS technology, in particular through the Lacq pilot project carried out between 2010 and 2013 involving oxy-fuel combustion capture followed by storage in a depleted reservoir. We systematically examine the possibility of reinjecting CO2 from the fields we produce and are looking at ways to use it to enhance oil recovery. Based on our experience, we feel that further R&D is required in a variety of areas, including the maturity of capture technologies, availability and location of storage capacity, carbon use, technical feasibility matching the scale of needs, and reducing the cost of these technologies. To that end, we will allocate up to 10% of our R&D spending to CCUS. We have also begun working alongside our peers within the Oil & Gas Climate Initiative on commerciality issues, capture technologies and global storage capacity.