Friday, March 05, 2010

The Oil Crunch: A wake-up call for the UK economy

Here is an important report just released. A new report by a United Kingdom industry taskforce predicts steep oil price rises and gasoline supply shortages by 2014-2015, which will put the global economy at similar risk to the 2007-2008 rapid rise in oil prices that helped trigger the Great Recession. According to their site:

"The time period would be 2014-2015 when the oil market would be starting to experience rapidly rising prices and tightening oil supplies...It is notable that the CEO of Total, Christophe de Margerie, is already warning of such an outcome in the 2014/15 period," says the report, "Industry Taskforce on Peak Oil & Energy Security," funded by Virgin Group, Arup Engineering, Foster and Partners, and Scottish and Southern Engineering

According to their press release:

The Taskforce states 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. The Taskforce warns that the UK must not be caught out by the oil crunch in the same way it was with the credit crunch and states that policies to address Peak Oil must be a priority for the new government formed after the election.

The report issues a range of recommendations including:
General policies:
  • Government, local authorities and business must face up to the Peak Oil threat and put contingency plans in place
  • A package of policies are required to deal with the economic, financial and social impact of potential high oil prices
  • There is a need to accelerate the green industrial revolution
  • Government support should be boosted for alternative technological solutions and associated infrastructure, such as electric vehicles
  • Policies and fiscal measures to support and incentivise a shift from the traditional car to more fuel- and carbon-efficient modes of transport to be established
  • Government investment in public transport must be maintained

 Obviously, a recommended read. See main page here

Download pdf report - 'The Oil Crunch: A wake-up call for the UK economy'


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