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9:43PM Wednesday 07 January, 2009
'Blogs Central
Blog Central: Bill Hoffman Whether taking on developers hell-bent on destroying the Coast’s natural appeal or a Prime Minister indifferent to the plight of the poor, Bill Hoffman has never been one to mince his words. Bill’s been a journalist for 32 years, 29 of those on the Coast. Love him or hate him, he'll get you blogging.

When the fuel runs out

June 4 | Bill Hoffman

There was really something quite ironically perverse about the way Brendan Nelson on Monday claimed Prime Minister Kevin Rudd was using the return of troops from Iraq to distract attention from the Opposition’s focus on FuelWatch and the price of petrol.

After all, wasn’t Mr Nelson part of a government that marched us into Iraq on a false pretence, an invasion that has led not only to the deaths of close to one million people but also, according to experts, a trebling of the barrel price of oil.

Dr Mamdouh Salameh, an oil economist who advises both the World Bank and the UN Industrial Development Organisation, estimates that oil would be no higher than $US40 a barrel if the Iraq war had not occurred.

Quoted in the Independent on Sunday a week ago by reporter Geoffery Lean, Dr Salameh, who is the UK-based director of Oil Market Consultancy Service and an expert on Iraq oil, said Iraq was the only country with the capacity to substantially increase production.

Lean reported that Dr Salameh told a British all-party parliamentary group on peak oil last month "that Iraq had offered the United States a deal, three years before the war, that would have opened up 10 new giant oil fields on "generous" terms in return for the lifting of sanctions’’.

"This would certainly have prevented the steep rise of the oil price," he told the group.

“But the US had a different idea. It planned to occupy Iraq and annex its oil."

The piousness of Mr Nelson’s remarks to parliament would be laughable had this country not just emerged from a shameful period during which his government used the threat of illegal immigration and terrorism to distract from the real issues of the day and to justify the disgraceful abuse of the law.

That aside, Prime Minister Rudd’s fixation on FuelWatch as having any relevance to the enormous challenges that face the world as it adjusts to the realities of peak oil is disturbing.

Any short term effect FuelWatch may have on the pump price of petrol in Australia is irrelevant.

The Opposition’s demand that Mr Rudd somehow guarantee cheap petrol is as foolish as the government’s lack of initiatives in the face of the crisis at our doorstep.

With world oil production stagnating and skyrocketing demand from China and India, the problem every government has been warned about and has been aware of for the past two decades is upon us.

This is an energy-dependent world that has failed to encourage a reduction in use of fossil fuels, nor the development of technologies to replace them.

Fuel is not going to get cheaper. The world’s two most populous nations are developing an appetite for it equal to that of the old economic powers.

And even if the mess made in Iraq since 2002 could be resolved, bringing new fields on line, the fundamental problems won’t change.

The short-term policy settings the Prime Minister should be arguing before parliament need to recognise these realities.

How we can quickly reduce our national dependence on fuel should be the foremost issue occupying the minds’ of our national leaders.

The billions of dollars being committed to new roads in south east Queensland alone would be better spent on cheap, regular and accessible public transport.

A re-prioritising of road funding to public transport needs to be immediate and should be imaginative in its service delivery.

One simple symbolic gesture of intent could be the slashing of funding for the Commonwealth car fleet, replacing it instead with mini-buses to ferry members to parliament.

That is no fatuous suggestion.

There is a very real argument that rather than fiddling with ways to knock a couple of cents off the litre price, government should be artificially inflating it to dampen demand and to fund heavily-subsidised public transport and conversion to gas.

Instead subsidies are being cut not only for gas conversions but also for the delivery of solar energy to homes.

Our representatives need to be told the charade being played out in parliament is no longer acceptable.

The exchanges being traded across the floor lack the depth of a Grade Nine debate and are not about us, the issues that confront this nation or the futures of our children.

It is just about the grubby pursuit of power and the desire to hold onto it.

Will our leaders, from their cosseted positions of privilege and access, still be prattling on about the inconsequential as the pumps run dry and the economy grinds to a halt?

The electorate needs to get very angry very soon.

Recent Comments

on 4 June, 2008 at 5:07 a.m. ( Suggest removal )
Hear hear Bill - here's hoping Kevin Rudd reads the daily!
on 4 June, 2008 at 9:29 a.m. ( Suggest removal )
Nice to hear General motors announcing mass production of a new electric car called the Chevrolet Volt (with tiny petrol engine to re-charge the batteries only) ... by 2010! Wonder where they had that one hidden ... Holden will be making it too.
on 4 June, 2008 at 10:28 a.m. ( Suggest removal )
All levels of government need to think globally about this, and local governments are the best positioned to act locally. The common denominator among the members of our new Sunshine Coast Regional Council is that they were all elected on a platform of sustainable development.
Creating a large new regional employment hub at rural Bridges in the hinterland, 25 kilometres and more from where most Sunshine Coast people will continue to choose to live would generate thousands of extra daily car commutes. Servicing it with effective public transport would be at the cost of delaying it on existing commuter routes.
When the Council gets the reports on the 900 acre Bridges Investigation Area from the State Government on its suitability or otherwise as a regional industrial precinct and is asked to decide, their answer should be an unequivocal one to abandon the whole obsolete concept of a satellite industrial suburb in the hinterland.
on 4 June, 2008 at 10:32 a.m. ( Suggest removal )
Well said.
This site: http://www.lifeaftertheoilcrash.net/ predicts things will get nasty from 2010 onwards. That's not very far away. I'm now always thinking about ways that we can use the car less, and we already own an electric bike (that we fuel with green energy).

The govt needs to stop subsidising coal and other fossil fuel industries and start pumping that money into alternative energy technologies. And they need to subsidise electric cars to stimulate the market.
on 4 June, 2008 at 10:39 a.m. ( Suggest removal )
Good points Bill, a nicely tilted article.

The question still remains as to why the Feds aren't looking at Australia's abundance of Liquid Natural GAS.

We have enormous reserves of LNG and it is currently piped to the major capital cities.

Why wouldn't they rebate the LNG conversions for vehicles and open government operated outlets in direct competition with the big oil companies.

That would be genuine competition.

At the worst any profits would be comming back to the Australian populace.

Currently most of our energy assets are be exported offshore with little comparative return to the Australian people.

Meanwhile we are all being exploited at the bowser.

Where is the Holden/Ford LNG/electric hybrid ?

Probably filed away amongst the big oil political donation folders.
on 4 June, 2008 at 5:28 p.m. ( Suggest removal )
This is not my idea. It was sent to me as part of one of those 'pyramid' type emails. But, I reckon it is terrific.

Put simply, we the motorist need to wrest control back from the fuel company's. Yes?

So, how?

Okay, this is how.

We need some internet control centre called "Bugger 'em," a site that every motorist checks each day so they can be informed.......


That, today, and until further notice, do not buy from Caltex. Get your fuel at the other places.

....and if ever motorist did that, Caltex would have to react to attract it's custom back.............

So, Caltex takes the price down.

Then, it is the turn of BP.......

etc etc etc.

I love it.
on 5 June, 2008 at 9:37 a.m. ( Suggest removal )
Good post,Bill.
I hear this AM that our mandarin PM is off spruiking up a common market thingi for the Asia- Pacific.Globalization,free trade,open borders and all that really good stuff.

Kevin,you're an idiot.
on 12 June, 2008 at 11:09 a.m. ( Suggest removal )
Um.... Have IQ's dropped suddenly?
Oil costs no more to produce, (it costs about 10c a barrel to get out of the ground) there are still wells being drilled in Australia and regular new oil and gas discoveries, by no means is production at a maximum and we are presently 75% self sufficient, If the Government bought the australian oil assets and infrastructure THEY would control OUR oil and fuel prices.
Why do we continue to allow the OPEC contries and faceless future traders dictate what we pay at the bowser?
Sure lets all save 25% of our consumption (use the gas we are exporting) or increase production to match demand!
Lets use Australian resources in Australia and we will all be better off.

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