Huge blowout in NZ oil import cost

In the year to September oil imports rose 22% to $7.7 billion. Oil is costing us $1.4 billion more than a year ago.

If this price trend continues then by 2015 our annual oil import bill will soar to $17 billion and will be $11 billion more than it was in 2010. That annual extra cost will be greater than the government's contribution to the Christchurch earthquake.

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New Foundation to highlight peak oil and end of growth

When I started writing this blog over a year ago, I stated my motivation was “to probe, raise awareness, encourage informed debate, and look at community responses.” But it’s often felt like I was a lonely voice in the wilderness. How come almost no one else in New Zealand – even in the blogosphere - was commenting on peak oil and its huge economic implications for our nation? How come there was not even a nascent entity or group taking up the challenge of informing the public, and generating debate that would hopefully seep into the mainstream media?

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Peak oil, recessions and the end of growth

On Tuesday I gave a presentation to Auckland University students on "Peak oil, recessions and the end of growth"

The event was organised by AIESEC , the world's largest youth run non profit organisation.

The powerpoint version is available here

to view the video on slide 24 see here

The .pdf version is here

When might New Zealand's oil imports dry up?

A Guest Post by Nigel Williams

There is a set of questions that we can never know the answer to except in hindsight. Questions like:- “How long do I have before I cannot afford to buy fuel?” “How long do I have before there is no oil in the tank of my car?” “How long do I have before there are no diesel-powered trucks running on roads bringing food to my supermarket’s shelves?”

The answers to these will be different for each one of us, possibly by many years.

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(Un) Economic Peak Oil is what really matters

In several of my recent posts, such as here, here, and here, I have argued that concentrating on the geological peak of oil production is a distraction. What really counts are the severe economic implications for New Zealand and the world economy as oil prices trend upwards and become more volatile. And I have highlighted the substantial impacts on our economy even without global oil production actually peaking, or declining. Production being on a plateau since 2005 has been sufficient.

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Officials Muzzled on Peak Oil?

The government has finally released its Energy Strategy. There are cosmetic changes from the Draft version but it's no surprise that the final Strategy continues to completely ignore the threat of peak oil. 

There were many submissions, including my own, which detailed the raft of recent reports from oil and energy experts, think tanks and government institutions which are all pointing to an imminent supply and oil price crunch. And in 2009 government officials themselves gave strong warnings to Ministers. So since 2009, have the officials been muzzled?

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Oil Royalties a Mirage?

Beside the release of the government's final Energy Strategy was a report from Woodward Partners purporting to estimate the potential royalty income from existing, and yet to be discovered oilfields.

Business cheerleaders such as the National Business Review typically took the most extreme best case guesstimate and trumpeted the report with headlines of a $13 billion bonanza. But if they had bothered to actually read the report they would find that quite different story emerges.

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