Alternative Fuels Australia

QLD report: peak oil approaching

Posted by Car Geek on September 17, 2007

An as-yet-unreleased report, commissioned by the Queensland government, has thrown its weight behind peak oil theory and warns of significant social and economic symptoms if a peak oil event is approached unprepared.

The McNamara report, led by the new Queensland Minister for Sustainability Andrew McNamara, warns that industries as varied as transport, tourism and agriculture will be adversely affected by a peak in oil production and that “perhaps we have to rethink” government intervention in fuel prices, such as subsidies, which have been noted as potentially contributing to the problem of increased consumption.

Peak oil, the theoretical point at which global oil production reaches a maximum, is predicted to arrive at a wide variety of times, ranging from already occurring to twenty years in the future or further, with some doubting the extent of its impact. One of the report’s co-authors, Jago Dodson, said that government planners need to stop “making things worse” with expanding suburbs that lack public transport, forcing their residents to rely on cars. The impact of rising oil prices is also likely to affect other parts of the economy, according to Dodson.

“As the price of fuel flows through the whole economy, pushing up transport prices, food prices and everything else, it pushes up inflation, which leads to higher interest rates.”

(Source: The Courier-Mail)

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