1. China and India’s Ravenous Appetite for Natural Resources ― Their Potential Impact on Colorado Vince Matthews Director Colorado Geological Survey

2. YOUR Geological Survey !!! Understand the Geology of Groundwater Resources Promote Mineral and Mineral Fuel Resources Colorado Avalanche Information Center Reduce Impact of Geologic Hazards Educate the Citizens of Colorado Assist State and Federal Agencies

3. Everything you need to know about Mineral and Energy in Colorado

4. Production of Natural Resources is an Important Part of Colorado’s Economy $11.8 billion

5. Revenue comparison of Colorado’s Important Economic Sectors Minerals & Energy Agriculture $ Billion Tourism

6. Distribution of Colorado Mineral & Energy Value 2005 ($ Billions) CO2 (0.200) Natural Gas 8.1 Oil1.2 Minerals 1.5 Coal 0.8 Uranium 0.007

7. China India U.S.

8. Population Comparison China U.S. India

9. Land Area Comparison ChinaU.S. India

10. GDP Comparison China U.S. India

11. GDP Growth Comparison China U.S. India

12. Japan GDP World Electrical Growth World 6.3 China/India/U.S. 3.4

13. World Electrical Growth India 0.4 U.S. 1.1 China 1.9

14. World Electrical Growth Africa Asia- Pacific Europe- Eurasia Middle East South & Central America North America

15. China’s Share of World Mineral Production in 2003 Commodity Percentage Rank Coal 45 1 Oil 4.7 6 Cement 42 1 Fluorspar 55 1 Rare earths 85 1 Aluminum 18 1 Antimony 89 1 Copper 12 2 Gold 8 4 Lead 18 2 Magnesium 45 1 Molybdenum 24 3 Silver 12 3 Steel, crude 23 1 Tin 32 1 Tungsten 83 1 Zinc 22 1 Source: USGS, Kenzie, et al

16. China’s Production and Consumption of Copper Production supplemented by imports 43% Imported! Source: USGS, Kenzie, et al

17. China’s Share of World Mineral Production in 2003 Commodity Percentage Rank Coal 45 1 Oil 4.7 6 Cement 42 1 Fluorspar 55 1 Rare earths 85 1 Aluminum 18 1 Antimony 89 1 Copper 12 2 Gold 8 4 Lead 18 2 Magnesium 45 1 Molybdenum 24 3 Silver 12 3 Steel, crude 23 1 Tin 32 1 Tungsten 83 1 Zinc 22 1 Source: USGS, Kenzie, et al

18. Leading Importers of Iron Ore— 1980–2003 Sources: U.S. Geological Survey Minerals Yearbook; United Nations Conference on Trade and Development.

19. Trends in Demand for Steel Source: International Iron and Steel Institute.

20. World Energy Consumption Hydro

21. World Energy Consumption Oil

22. OIL CONSUMPTION- China Source: BP 49% Imported!

23. OIL- CONSUMPTION India Source: BP 69% Imported!

24. OIL- U.S. Consumption 67% imported!

25. Mexico’s declining production at Cantarell field accelerating Mexican state oil company Pemex said Wednesday that production at its Cantarell oil field, the world’s second-largest, will drop faster than expected. 08/03/06 54 of the world’s 65 oil producing countries are in decline!

26. OIL Price $70.85 Late- August $75.12 This Spring

27. Colorado Impact Oil prices increased 186% since 2002 Colorado’s production decline reversed in the last 5 years Wattenburg is the largest oil field west of the Mississippi (outside of CA and TX). Rangely still has large reserves (57R/65P). Commerce City refinery will be processing Canadian oil sands. Colorado Oil Production

28. Oil shale is being seriously re-appraised.

29. World Energy Consumption Natural Gas

30. NATURAL GAS CONSUMPTION - China

31. NATURAL GAS CONSUMPTION - India

32. NATURAL GAS CONSUMPTION - U.S.

33. 82% Natural Gas- U.S. ( Production)

34. NATURAL GAS- U.S.

35. $9.98 Mid- August NATURAL GAS- U.S. Price

37. Colorado has all, or parts, of seven of the top 50 natural gas fields in the nation!

38. 0 1000 2000 3000 4000 5000 6000 7000 200120022003200420052006 93% Increase! Colorado Drilling Permits

39. 13 18 32 28 39 64 74 0 10 20 30 40 50 60 70 80 90 100 19981999200020012002200320042005Today Colorado Drilling Rigs

41. Colorado has the fifth largest gas reserves in the nation. Colorado has the largest reserves of coalbed methane in the nation. Gas prices increased 186% since 2002 Colorado is the sixth largest gas producer in the nation. Colorado Natural Gas Production increased 21% in 2005 Colorado Impact Colorado Natural Gas Production

42. World Energy Consumption Coal

43. COAL- China

44. COAL- India 7% imported!

45. COAL U.S.

46. Colorado has the seventh largest bituminous coal reserves in the nation. Colorado has the largest reserves of compliance coal in the nation. Spot prices increased 76% since 2003 Colorado is the sixth largest coal producer in the nation. Colorado Impact Colorado Coal Production

47. World Energy Consumption Nuclear

48. NUCLEAR- China

49. NUCLEAR- India

50. NUCLEAR- U.S. Last nuclear power plant came online.

51. The world’s existing 435 nuclear reactors currently need 180 million pounds of uranium each year. 80 million pound gap

52. Uranium prices more than quadrupled since 2003 $41.50

53. Colorado Impact

54. ~ $2.00/lb in 2002 $40/lb in July! MOLYBDENUM Price

55. Colorado MOLYBDENUM Production

56. Precious Metal Increases Silver 207% Platinum 250% Gold 140%

57. Base Metal Increases Zinc 385% Copper 390% Lead 222% Aluminum 142% Nickel 408%

58. Antimony Titanium Cadmium Chromium Cobalt IndiumMagnesiumSelenium Tungsten Vanadium Percent Price Increase 01/2001 – 06/05 01/2004 – 06/05 150% 633%48% 100% 966%920% 60% 1733% 400% 428%

59. 22% Imported Cement producers 1.China 2.India 3.U.S. China Consumes ½ of all the concrete in the world 20032004 U.S. cement manufacturing is 81% foreign owned

60. “Chinese companies and their rivals are scouring the globe from Australia to Africa for access to the raw materials needed to sustain the Asian nation’s growth as commodity prices surge.” --June 23, 2006 (Bloomberg)

61. China 2005 – Opened 70,000 new supermarkets 2006 – Will become #3 car manufacturer – 42% increase in capital investment 11 th Five-year plan - Plan to build the equivalent of three Manhattan Islands

62. Overall Impacts Coloradans will suffer from effects of inflation Coloradans may see increasing shortages of critical raw materials Conflicts may arise with multi-national corporations operating in Colorado Pressures will mount to develop more of Colorado’s natural resources

63. The End! Of the talk, that is.