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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Sci-Tech
Search Scoop  
 
 
Powered by Vodafone
NZ independent news