Video | Business Headlines | Internet | Science | Scientific Ethics | Technology | Search

 


Peak Oil 101. For the benefit of Dr Cullen.

PowerLess New Zealand
25 August 2004, Wellington

Peak Oil 101. For the benefit of Dr Cullen.

Oral questions in the house yesterday

Jeanette Fitzsimons: What does the Minister understand by the term "peak oil", and when does he expect it to occur?

Hon Dr MICHAEL CULLEN: I have to confess that, for once, the member has floored me; I do not understand what is meant by the term "peak oil".

The fact that our Minister of Finance is completely and utterly unaware of the “peak oil” issue is absolutely astounding. By inference one can only conclude that this ignorance clearly demonstrates the current Government’s Energy politics are in total disarray.

It is clear from Cullen’s admission yesterday that the Labour Governments knowledge in regard to the very serious global energy issue of peak oil and all it’s geo-political complexities wouldn’t fill a rice-bubble.

Dr Cullen should resign immediately and the job should go to someone that is acutely aware of the geopolitics of energy – our entire existence as a nation depends on such knowledge.

Our global energy system, a massive complex network of production and distribution designed to meet the needs of the industrial world is failing. Production is only just meeting demand. As the developing world, transition economies like China, India, South Korea and Brazil continue to industrialise at a staggering rate no one, including the oil companies themselves have any idea how energy will be delivered to these countries. As OPEC’s president Purnomo Yusgiantoro commented recently “there is no more supply”. The OPEC nations are producing at peak capacity.

This ever widening gap between global demand for energy and our ability to meet it is beginning to emerge as a serious threat to global stability and will shape most certainly shape the future. Energy security goes well beyond sabotage and dirty bombs, it is the ability to meet immediate energy demand.

Yet the emerging supply demand imbalance is only the beginning of the peak oil problem. According to the latest BP statistics* the world is already losing a million barrels of oil per day to depletion, twice the rate of two years ago.

For the benefit of Dr Cullen, global peak oil is the point at which maximum global production of oil is reached. The production curve looks like a bell curve, once at the top of the curve we move into downside. On the down side it becomes more expensive and less productive to pump oil out of the ground. Prior experience in the US (peak 1971) the UK (peak 1999), Australia (peak 2000) verifies this trend. The world is currently at the peak of the global production curve.

How the Government can possibly plan an infrastructure, an economy, a future for New Zealand without this knowledge beyond belief. The desire to continue with plans to spend billions of dollars on road systems, including $415 million to improve Wellington roads PowerLess NZ repeats is an economic atrocity, for which those responsible for such gross wastage of public funds should be held fully accountable.

*A summary of the BP Statistical review of World Energy can be found here. http://www.fromthewilderness.com/free/ww3/082304_million_depletion.shtml

Powerless NZ 25 August 2004

PowerLess NZ is a growing group of scientists, energy analysts and concerned citizens whose principle objectives are to alert both Government and the general public to New Zealand’s looming energy crisis. Our aim is to support development of renewable energy resources at both a private and public level, as well as encourage a firm move away from dependence upon fossil fuels. More information about global peak oil and resource depletion can be found at http://www.oilcrash.com/

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Sci-Tech
Search Scoop  
 
 
Powered by Vodafone
NZ independent news