Gas And Electricity - Are we in a 'energy crunch'?

Published: 19 November 2008

A new report recently published; The Oil Crunch Securing the Uk’s energy future has predicted that we are going to experience a severe ecological crisis that will far outweigh the global credit crisis that we are currently experiencing. Confirming that the production of easily available oil will peak by 2013, thus having an overwhelming impact upon the world’s economy.
The report, published by Peak Oil, the industry taskforce urges the government to revaluate the fuel crisis, and indeed claims it is more of a threat to national security than terrorism.
Will Whitehorn, chairman of the Peak Oil and Virgin Group representative said: “The first report of the taskforce is a balanced look at the energy risks and opportunities we face but it is also a wake-up call to the urgent actions required in the UK and other major global economies to overcome the consequences of the end of the era of cheap oil.”
Mr Whitehorn goes on to suggest that this crisis is a perfect opportunity for Britain to set an example, by investing in alternative renewable energy supplies, as once oil production has peaked, the necessary resources will not be available to implement the changes required.
The Peak Oil group is made up of eight UK companies, including Scottish and Southern energy, Stagecoach, and engineering firm Arup. The report’s findings are based on its own research, as well as deep analysis of oil-supply risk by Peak Oil consulting and Shell. In conclusion therefore, the study confirms that we are most likely facing a peak and fall scenario, with outright collapse in production also a risk.
It is also reported that the oil industry has made significant discoveries of oil reserves in Brazil. However, these are not, it is alleged, significant enough to support the ever rising needs and demands of developing countries such as China. Furthermore, the report raises concerns that existing oil reserves have been exaggerated for political purposes.
The emergence of these findings is not all bad news however. Peak Oil suggesting, that whilst we are in an economic decline, with unemployment higher, the government should utilise this time to invest in a renewable infrastructure.
The department of energy and climate change formed during Gordon Brown’s cabinet reshuffle has recently committed the United Kingdom to cut our greenhouse emissions 80 per cent over the next 42 years whilst gradually advancing toward green energy solutions. Its appointed leader, Ed Miliband has yet to release any information on how the department intends to address the impending environmental crisis.
Several days before The Oil Crunch was published, Gordon Brown told the BBC Politics Show: “We have a global energy problem, but we don't have a means of co-coordinating people's actions so that we reduce our dependence on oil. And these are the problems that as a world community, you've got to deal with them.
“That's why I've been proposing international action to deal with both the energy problem and the problems of the financial sector.”*
The Peak Oil group have committed to continuing their research, and trying to develop alternative renewable energy sources.
*Source-The Journal November 2008

View All Articles