Peak oil

international | miscellaneous | opinion/analysis Thursday September 14, 2006 19:35 by gníomhaí

NO contingency plan

'Peak oil' is a term that has become almost mainstream by now- basically it signals the end of cheap oil. Most of us will have heard this already and as oil prices increase almost every month at this stage the government is finally waking up to the fact. Or is it? Recently in the Irish Times Marc Coleman, Economics Editor wrote that Brian Cowen said 'The government had NO contingency plan to deal with the prospect of a SEVERE INCREASE in oil prices' .

Now, usually politicians 'put a brave face on' when dealing with times of crisis- it is rare indeed that someone in Cowen's position is so forthright, yet there we have it in black and white- the government has plainly admitted that we are on our own- we cannot rely on the government to help us through the imminent energy crisis that now faces us.

We cannot rely on the government to help us through the imminent energy crisis.

When oil prices go up, effectively all prices follow -we can see this by the rising rate of inflation.
The price has gone down for the moment as it does every year when the American driving season ends (when demand for petrol is at its highest) but the trend is most certainly upwards (it recently reached $78 a barrel (from $20 a few years ago), prices not seen since the oil crisis of the late 70s. early 80s.
The consequences of very high oil prices are high electricity prices (already happening-oil will go up by 20% from January 2007,says the ESB and the cost of gas -the price of which tends to mirror the oil price-will increase by 34% come October), high petrol prices -prices reached E1.20 per litre recently, increased cost of food, heating etc etc-basically everything.

In order to deal with this crisis - we have to become more self-sufficient; we must grow more of our own food, become more adept at fixing things ourselves, get used to cycling/walking more and travelling a lot less. However, the problem is too large to face as individuals. The individualisation of society is a phenomenon which has accelerated since Reaganite/Thatcherite economics- this we must strive to reverse and form communities again.

If anyone is stll sceptical that oil is becoming ever scarcer (particularly cheap, easy to refine oil), even Chevron Texaco admits it.....plus has anyone noticed how many petrol stations are closing recently? - a sign of a reduction in world oil supplies.