text: 36. Since fossil energy sources are finite and are being constantly depleted, andsince they differ in their relative abundance, it will be necessary in the shortterm to substitute the more abundant for the more limited conventional sources andin the long term eventually to replace the conventional with the new and renewableenergy sources. The implication is that the new and renewable sources will have tobe developed for use as soon as technologically and econornically feasible. 37. Before diseussing specific policies, it is perhaps useful to provide a roughpicture of the role of different types of enterprises that participate in energyexploration and developnent in developing countries. Based on data for 70developing countries, it was found that, during t.he period 1979-1980, national oilenterprises undertook on the average, 60 per cent of the petroleum exploration inthese countries and foreign energy conpanies undertook the rest. y/ This pattern shows that imPortant roles have been played by both public ana private sectorenterprises in the development of energy resources in developing countries.Naturally, however, the role of institutions in individual countries night differfrom the average picture, since it is deternined bv the policies of the individual Governments.A/40/sLL English Page 14 A. National policy: developing countries 38. For developing countries that have not done so, steps should be taken to increase their planning capabilities for formulating and implementing enerqy policies, progranmes and projects. Such steps would include establishing, within the overall institutional franework, the institutions necessary for effective energy planning and decision-making; training tbe reguired personnel to formulate and implenent energy policies and programmesi and estabLishing an infornation system to provide policy makers with resource and technology assessnent and other types of information required for energy planning and policv-making. An energy research and developnent capability should be established, within the national institutional franework for technological developnent' for the purpose of developing indigenous technologies and transferring and absorbing the required technologies from abroad. 39. Developing countries need to mobilize significantly larger financial resources for energy development. One very important instrument is Price policy. In countries where donestic energy prices can be raised to reflect opportunity costs' the higher prices can be used to generate surpluses for investnent. In many
analysis: The text discusses the need for developing countries to transition from fossil fuels to renewable energy sources, mobilize financial resources for energy development, and establish institutions for effective energy planning and decision-making. It also mentions the role of national oil enterprises and foreign energy companies in energy exploration and development. These themes suggest that the text is related to economic development and the management of natural resources.