The Resource Base

Every engineering project consumes resources in the form of finances, labour, energy, and materials. The totality of the sources or pools of these resources that are available to a project and on which it might potentially draw is its resource base. From this base the engineers will then have to make a choice of which resources they actually employ in the project, and it is the existence of a great (and increasing) number of possible choices that provides a further dimension to the complexity of engineering projects. Some of the main aspects of this resource base are 

---

The availability of a resource depends on the degree to which it is localised in one or a few countries (making it susceptible to production controls or cartel action) on the size of the reserves, or, more accurately, the resource base (explained shortly) and on the energy required to mine and process it. The influence of the last two (size of reserves and energy content) can, within limits, be studied and their influence anticipated. 

The calculation of resource life involves the important distinction between reserves and resources. The current reserve is the known deposits which can be extracted profitably at today s price using today s technology it bears little relationship to the true magnitude of the resource base in fact, the two are not even roughly proportional. 

Fig. 2.3. The distinclion between the reserve and the resource base, illustrated by the McElvey diagram.

One way to approach the human resources question is to consider not the people but the tasks to be performed, and the skills you think you will need. Especially in large companies, where bodies of expertise may be isolated from each other, this technique helps broaden the resource base. It also makes it easier for managers to assist you defining your needs in terms of skills sets, rather than of specific individuals, gives them greater flexibility. 

Urban, rural and industrial developments may have profound effects on the surrounding environment. Such effects can defeat the object of development, in that the negative environmental impact may outweigh the benefits. In the case of natural resources, inappropriate development may even destroy the resource base. If environmental matters are accorded adequate consideration during the planning and management of development programs and projects it is possible for pollutants to be assimilated. As a result, the whole development can be accommodated by the environment in such a way that adverse effects are minimized and the economic and social benefits of development are maximized. 

Pettus, N. L. 2001. The resource-based view as a developmental growth process evidence from the deregulated trucking industry. Academy of Management Journal, 44 878-896. 

Foss, N. J. Robertson, P. L. 2000. Resources, Technology and Strategy Explorations in the Resource-Based Perspective. New York Routledge. 

Mahoney, J. c Pandian, J. 1992. The resource-based view within the conversation of strategic management. Strategic Management Journal, 13 363-380. 

Hsiao WC, Braun P, Dunn DL, Becker ER, Yntema DK, Verrilli DK et al. An overview of the development and refinement of the resource-based relative value scale the foundation for reform of U.S. physician payment. Med Care 1992 30 Suppl NSl-12. 

Everyone recognizes that crude oil exists in finite amounts, but no one really knows how much of it remains in the earth. Since E.L. Drake drilled his first well in 1859, a vast industry has been established and oil became the predominant worldwide fuel. But petroleum geologists freely admit that definitive knowledge about the resource base that made this growth possible remains elusive. At any given time, the amount of oil available for consumption depends primarily on two factors (1) the producibility of... 

Shapiro JF (1999) On the connections among activity-based costing, mathematical programming models for analyzing strategic decisions, and the resource-based view of the firm. European Journal of Operational Research 118 295-314... 

The pulp and paper industry is undergoing some relatively rapid changes in pulping technology. In areas of the world where the resource base is dwindling, the increased yields offered by newer mechanical pulping techniques are highly desirable. This has been the case in Sweden, Finland, and Canada, which have low-cost hydroelectric power available in many sections. 

In 1992, the federal government adopted the resource-based relative value scale (RBRVS) method as the Medicare physician payment system. The RBRVS represents a ranking of services according to fhe relative costs of the resources required to provide the services. The system has three components (1) the relative work involved in providing the service, (2) practice expenses, and (3) liability insurance costs. The system also permits the use of modifying factors, such as geographic differences and annual increases. A pharmaceutical care RBRVS system was developed as part of fhe Minnesota Pharmaceutical Care Project. 

The enormous value Acre s extractivists place on the forest is exemplified in the well-documented and highly publicized rubber tapper resistance movement. During the wholesale conversion of forest to pasture during the 1970s and 1980s, many extractivist families in Acre risked their lives when threatened with expulsion from their forested lands (Allegretti 1990, Hecht and Cockburn 1989). Indeed, it was this movement that eventually led to the creation of the first extractive reserves in Acre. Simply stated, deforestation eliminates the resource base from which the extractivist livelihood depends. 

The sum of all known and inferred (with reasonable probability) resources without consideration of economy of extraction is the resource base. The level of investigation is uneven among regions, and therefore additional amoimts may be discovered, particularly in areas not well studied today. Also, extraction methods vary with time, and new techniques (e.g., enhanced oil recovery) may alter the amormt of reserves assigned to a given physical resource. 

Figures 5.15 and 5.16 show the coimtry distribution of proven reserves of bituminous coal ("hard coal") and other coal (sub-bituminous coal or lignite), and Figs. 5.17 and 5.18 give the additional reserves for the same two categories. Finally, Fig. 5.19 gives the total amount of coal estimated in place (i.e., the resource base).

One of the most fundamental problems confronting mankind at present is how to meet the basic needs and requirements of all people on earth without simultaneously destroying the resource base, that is, the environment. 

Develop the resource base necessary for successful achievement of the Association s mission. 

Payment for the majority of the patient care services provided by physician and nonphysician practitioners is based on the resource-based relative value scale (RBRVS). The RBRVS ranks services according to the relative costs of the resources needed to provide them. The resulting relative value scale is then multiplied by a dollar figure to convert the service into a payment schedule. This payment model was successfully applied to pharmaceutical care practice in the Minnesota Pharmaceutical Care Project. Five levels of patient need were created based on the following 1) the number of the patient s medical conditions 2) the number of medications the patient is taking and 3) the number of drug therapy problems identified. At 10 different community pharmacy practices in 1994, the average payment for a patient encounter was 12.14. 

Production in the biggest oil fields that are state funded and are the main components of the resource base in Russia are substantially completed. 

The proven reserves of the corporation stand at 21 billion oil-equivalent barrels, about 13 years of production at current levels. The non-proven portion of the resource base is approximately 48 billion oil-equivalent barrels. 

Explored the resource base for nutshells and bagasse to determine their availability. 

A final term used to define total oil reserves is estimated ultimately recoverable (EUR) reserves, which includes cumulative production to date, current reserve estimates, and those reserves that remain to be found and exploited. In Figure 2.11, the EUR would make up a portion of the resource base plus cumulative production to date. 

---