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Wednesday, July 20, 2011

New Zealand Government’s Response to Peak Oil – In time we hope something will turn up

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On July 8 I attended a forum on peak oil organised by the Sustainability Society. Dr Richard Hawke from the Ministry of Economic Development gave a presentation  on behalf of the New Zealand government entitled "Peak Oil - New Zealand's Response". I came away with emotions ranging from frustration to anger and embarrassment.

Thursday, July 14, 2011

Even more pain at the pump this year

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I am usually loathe to predict what oil prices will do, certainly in the long term. As Yogi Berra famously said "it's hard to make predictions, especially about the future". But some pretty compelling evidence suggests another substantial upward tick in the oil price is coming in the second half of this year - on top of the already damaging current oil price shock.

Thursday, July 7, 2011

Infrastructure Plan wilfully oblivious of peak oil

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The government's Infrastructure Plan is meant to map out a strategic direction for New Zealand infrastructure for the next 20 years. It fails miserably because it wilfully ignores peak oil.

Wednesday, July 6, 2011

Oil Shock Horror blog -- the story thus far

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9 months after a tentative start last September, and with 45 posts clocked up here at Oil Shock Horror Probe, I thought it was time to re-cap. What are the trends and themes that have emerged so far?

Friday, July 1, 2011

High oil prices cause "large" effect on inflation - NZ Report

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A 2005 study by New Zealand Reserve Bank economist Felix Delbruck ("Oil prices and the New Zealand economy" - Reserve Bank of New Zealand: Bulletin, Vol. 68, No. 4) has found that the inflationary effects of higher oil prices were "quite large". Specifically that :-
  • the direct impact of a $.10c a litre increase in petrol price lead to an immediate increase in the average household's living cost of about 0.3%
  • the indirect effect (of higher bus, taxi, train and air travel, and firms passing on higher transport costs which raised the cost of food etc) added another 0.3% onto the direct effect -- a total 0.6% increase in the CPI for every $.10c a litre increase in fuel.