Industry leaders warn of imminent oil crunch

The Green Party is calling on our Government to prepare for a significant oil crunch, in light of an industry led report warning the UK Government about the threat of rising oil prices.

The UK’s Industry Taskforce on Peak Oil and Energy Security has released its second in-depth analysis of the risks to the economy from the end of cheap oil.

“Our Government needs to listen to industry leaders such as Richard Branson and Brian Souter. Unlike the financial crisis, we cannot say we weren’t warned,” Dr Russel Norman, Green Party Co-Leader said today.

The Taskforce states that the impact of Peak Oil will include sharp increases in the cost of travel, food, heating and retail goods. It finds that the transport sector will be particularly hard hit, with more vulnerable members of society the first to feel the impact.

“John Key’s Government must stop and reflect on the wisdom of building more roads instead of improving public transport,” Dr Norman said.

“A key finding of the Taskforce is that oil prices will be extremely volatile and will threaten economic and social stability.

“Domestic gas, petrol and electricity prices will also be affected as people reach for alternatives. Our agriculture sector is particularly vulnerable because of its dependence on fossil fuels for fertilizer, irrigation and mechanical power.

“John Key is now on notice from the world’s industry leaders that one of the biggest threats facing New Zealand today is our dependence on oil.

“I call on the Government to convene its own taskforce and prepare New Zealand for the imminent oil crunch,” Dr Norman said.


The Industry Taskforce Report can be downloaded here:
http://peakoiltaskforce.net/download-the-report/2010-peak-oil-report/