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GAS PRODUCTION CONSUMED BY THE OIL AND GAS INDUSTRY ITSELF. THAT IS ROUGHLY 9 MILLION BARRELS OF OIL EQUIVALENT PER DAY, THE OIL CONSUMPTION OF WESTERN EUROPE OR ALL THE ENERGY USED IN RESIDENTIAL POWER IN NORTH AMERICA, JUST TO GIVE YOU A SENSE OF SCALE. CAROL: THAT'S A LIE. COR --- THAT'S A LOT. CORY: ONE OF THE REASONS IT IS CHEAPER FOR THEM TO USE, ENVIRONMENTAL CONCERNS ASIDE. WHAT IS HAPPENED WITH SOLAR, SINCE YOU HAVE DROPPED THE COSTS DOWN ENOUGH, THAT THE OIL AND GAS COMMITTEES, WHERE OIL AND GAS OUT OF THE GROUND RIGHT THERE, FIND THAT BUILDING SOLAR IS CHEAPER THAN USING THE OIL AND GAS THEY HAVE RIGHT THERE IN THE GROUND? ROB: THAT'S EXACTLY RIGHT BUT IF IT IS LOWER COST THAN THE PRODUCT YOU ARE USING, IT MAKES ECONOMIC SENSE TO USE THAT INSTEAD. YOU SEE THAT OCCURRING NOT JUST IN THIS PROJECT BUT ALSO IN SAUDI ARABIA, WHERE THE NATION THERE -- THEY ARE INVESTING VERY HEAVILY IN RENEWABLES, THE IDEA THAT IF WE CONSUME LESS OF OUR OWN PRODUCT, IT WILL LEAVE MORE FOR EXPORT AND FOR FUTURE GENERATIONS. CAROL: WHAT ABOUT THE PRICE OF OIL, THOUGH? WHAT IS THE FINANCIAL EQUATION THAT MAKES SENSE TO DO WHAT YOU ARE DOING? WHAT IS OIL HAVE TO BE PRICED AT? ROB : WHEN OIL PRICES ARE HIGH, IT IS ALL ABOUT INCREASING PRODUCTION, AND LOWERING COSTS IS LESS OF A PRIORITY. BUT WHEN OIL PRICES ARE LOW AS THEY ARE NOW, ALL THE FOCUS IS ON COST REDUCTION. IF YOU LOOK AT A TYPICALLY HEAVY OIL FIELD, 60% OF THE COST IS FUEL PURCHASE. WE CAN REDUCE THE COST OF DELIVERING THAT ENERGY. THE FOCUS ON COST REDUCTION IS ACTUALLY VERY GOOD FOR THE DEPLOYMENT OF SOLAR IN THE OIL AND GAS INDUSTRY. CORY: HOW MANY DEPLOYMENTS DO YOU HAVE OF THIS TYPE? ROB: 10 MEGAWATTS IN PRODUCTION AT THE MOMENT BUT 1000 MEGAWATTS UNDER CONSTRUCTION RIGHT NOW. CAROL: I THINK, YOU KNOW COME BACK IN 2012, U.S. SHELL IS ONE OF YOUR MAJOR INVESTORS. WHO IS INVESTING IN YOU GUYS? ROB: SHELL CAME IN IN THE SECOND ROUND OF FINANCE. WE BROUGHT IN THE SOVEREIGN WEALTH FUND OF OMAN. PART OF THE MONEY, OF COURSE, WHICH IS NICE, BUT IS IMPORTANT IN THE SENSE THAT OMAN IS THE LEADER IN ENHANCED OIL RECOVERY NOT ONLY IN THE REGION, BUT GLOBALLY. THEY HAD LESS OIL THAN THEIR NEIGHBORS. THEY HAD TO FACE THE QUESTION OF DECLINING PRODUCTION SOONER THAN EVERYBODY ELSE. THEY DEVELOP EXPERTISE THAT IS UNRIVALED ANYWHERE ELSE. THAT IS OUR STRATEGIC PARTNER AND STRATEGIC INVESTOR. THAT SITUATION YOU SAW IN OMAN , WHERE PRODUCTION PEAK AND ENTERED THE CLIMB, REQUIRING MORE ENERGY CONSUMPTION, IS REPEATING. YOU SEE BAHRAIN AND NOTHING HEAVY -- ANNOUNCING HEAVY OIL PROJECTS, KUWAIT, AND OF COURSE, IN CALIFORNIA, THEY HAVE BEEN DOING HEAVY OIL SINCE THE 1960'S. YOU WILL SEE INCREASINGLY IS MORE HEAVY OIL COMES ONLINE THAT THE ENERGY DEMAND OF THE INDUSTRY IS SKYROCKETING. CORY: HISTORICALLY, DEVELOPING SOLAR IN THE DESERT HAS BEEN A CRUMMY PLAN BECAUSE THE COST OF WASHING AND GETTING THE WATER THERE MAKES THAT COST INEFFECTIVE. WHAT IS YOUR FIX? ROD: TO GIVE IT SOME CONTACTS, THE PROJECT WE ARE CURRENTLY BUILDING IN OMAN COVERS THREE SQUARE KILOMETERS. 2 SQUARE KILOMETERS OF THAT IS UNDER GLASS. KEEPING2 SQUARE KILOMETERS -- CAROL: NOT EASY -- ROD: IN THE MIDDLE OF NOWHERE IS A MAJOR CHALLENGE. THERE IS NO CITIES ARE YOU HAVE TO -- YOU HAVE TO HAVE FOOD, WATER, DOCTORS FROM YOUR CONDITION, TRUCKS COULD ALMOST LIKE A MILITARY OPERATION. THE COST OF MAINTENANCE FOR CLEANING THESE SYSTEMS IS VERY, VERY HIGH. CAROL: WE HAVE ABOUT FIVE SECONDS HERE. I WOULD LOVE TO HAVE YOU TALK ABOUT MORE BECAUSE IT IS FASCINATING TO SEE YOU AND THE SOLAR INDUSTRY KIND OF WORKING WITH THE MAJOR OIL COMPANIES. ROD MCGREGOR, THANK YOU SO MUCH, AT GLASSPOINT SOLAR.