TASMANIAN RESPONSES

Tasmania, like the rest of the world, is facing ‘The Long Emergency’ – the greatest challenge that it is likely to ever face. Oil depletion is at the core of this challenge. Peak Oil will have profound implications across the board – in all sectors of the economy, for farmers, for fishermen, for tourist entrepreneurs, for transport planners, for local governments and for ordinary folk who just make a living and go to work.

Good News! – Tasmania’s university, UTAS, has moved ahead of state government, having just released its Peak Oil Risk Analysis.

Described as a global first for the tertiary education sector, the UTAS study has investigated the likely impacts of increasing world oil prices on its business operations staff and student population. (Download the study here.)

In so doing UTAS is the first significant non-government institution in Tasmania to incorporate rising oil prices seriously in its business risk assessments, thus providing a leadership model whereby other Tasmanian businesses and institutions can incorporate oil price into their business risks.

UTAS is a major institution and a sizable business operation, having several campus sites and 27,000 students (6,000 international students) representing 80 countries.

What are the risks to UTAS from Peak Oil?
Like other universities, UTAS has lower exposure to high oil prices than some other organisations of a similar size, however significant vulnerabilities exist, including:

    • Rising personal expenditure on fuel for staff and student travel to campus
    • Increased fuel costs for UTAS vehicle fleet
    • Higher aviation costs
    • Reduction in international student numbers triggered by slower global economic conditions
    • Threats to funding caused by negative economic conditions.

The Australian tertiary sector comprises 39 universities, enrolling over one million students and employing over 100,000 staff.



City of Stirling adds its weight

Meanwhile, yet another major local council has conducted a Peak Oil Assessment. Perth’s largest local government precinct the City of Stirling has released its “Oil Risk Strategy”.

Written in clear language, the Strategy assesses “the vulnerability of the City and its communities to the impacts of higher oil prices triggered by global oil depletion (Peak Oil) and the possibility of temporary oil supply disruptions. It provides a ‘roadmap’ to building a more secure and resilient future in the face of growing uncertainty around future global oil availability and pricing.”

Dear climate / peak oil champion,

We are asking for a few moments of your time to petition the state government because we are concerned that it is sitting on an important investigation that should be made public.

To his credit, in 2010 Minister Nick McKim gained budget 
funding for an important ‘Oil Price Vulnerability Study’ to be undertaken. The purpose of the study was to find out:

    1) what sectors of the Tasmanian community will be 
affected by rising fuel prices and
    2) the best ways to minimize such negative impacts on 
Tasmanian citizens, communities and the economy.

This is a very important area of study because growing 
energy prices can severely compromise vulnerable people 
and business sectors.

Now, two years later and 9 months after its foreshadowed 
release there is no sign of the study. We do know that it has been completed and is now gathering dust in government.

We appreciate that it is very sensible for government to 
understand these issues so that it can build oil prices into 
its on-going policy formation. More so, the public has a right 
to know. It’s high time this long awaited study was released.

So… please click here to petition Minister McKim now. Please ask him to bring this important project to fruition and thereby constructively engage the Tasmanian people in an 
issue that is vital to their future.

You can add your name to this petition by simply sending the letter below to the Minister in an email: http://peakoiltas.org/wp-content/uploads/2012/05/Petition-to-Minister.jpg

(Just insert the URL link into your e-mail or you can save the image to your desktop and then attach it to the email so that it becomes visible.)

Please address your e-mail to: Minister.mckim@dpac.tas.gov.au

Alternatively you could print out the letter below and post it to Minister Nick McKim, c/o Parliament House Hobart 7000.

Please request that the Minister release the study now or inform you when it is to be released.

    Thanking you,

    Peak Oil Tasmania Education Committee
    24 May 2012

In March Peak Oil Tasmania was pleased to co-host a visit to Tasmania by Canadian writer and systems analyst Nicole Foss, who presented at two lively lectures in Hobart and Launceston. Foss has become an expert in the complex global financial and energy systems and focuses a lot of her work on the pressing problem of oil depletion.

Thanks to Hobart climate science writer, Peter Boyer, below is his overview of what Nicole had to say:


Looking the future in the eye

by Peter Boyer

“The chances of us getting through the next decade without significant economic damage are zero”…Nicole Foss [27 May 2012 | Peter Boyer]

Everyone, I’m sure, agrees that some big changes lie ahead. Climate and energy are in the mix, as are governments and economies. All very important, but I reckon that your central concern is much closer to home.

I’m guessing that when you think about your future, uppermost in your mind (as in mine) is the physical and financial wellbeing of you and those close to you. The neighbourhood we call home and the people we share it with remain our principal focus. It’s part of being human.

In tough times our home focus is stronger than ever. This was brought home to me in Hobart earlier this month when a softly-spoken Canadian named Nicole Foss held listeners spellbound as she mapped out her vision of where our current global financial difficulties are taking us.

Foss, who writes under the name Stoneleigh on the blogsite The Automatic Earth, has a background in biology, pollution control, finance and international law — a pretty clear pointer to a mind that ranges far and wide. In that respect at least, she didn’t disappoint her two Tasmanian audiences.

Foss provided a pretty full run-down of what it takes to develop resilience to future shock. She might have added one more item — sitting through one of her lectures without collapsing in utter despair. Even if you take on board only a small part of her message, this is pretty tough medicine.

Here’s a sampler of what she had to say:

    • The world is now experiencing the biggest financial bubble in history. In keeping with the size of the bubble, its inevitable bursting will bring on a major depression and an energy crisis.

    • Markets are neither rational nor efficient, and are driven by perception, not reality. Prices are determined not by any economic fundamentals but simply by what people are prepared to pay.

    • Emotions are catching. When markets are steeply rising we tend to be euphoric; when they’re collapsing we’re driven by fear. Fear being a very sharp emotion, in the wake of a burst bubble we get an extremely rapid decline. That means we’re headed for the worst crash in history.

    • It’s already begun. With those at the top of the financial food chain grabbing for their share of collateral, we’re seeing a spread of fear, which will increase sharply in the next few years. In these circumstances, public policy gets completely overtaken by events.

    • Credit (currently 95 per cent of the total money supply) is the main driver of today’s bubble. Where it once boosted GDP by supporting productive business, credit has been used for personal luxuries or for gambling on market futures, while creating the illusion that this is real wealth.

    • The credit bubble is something like a giant game of musical chairs where there’s one chair to every 100 people. So long as the music keeps playing we don’t notice the acute chair deficit. When it stops, only those best positioned to understand the rules of the game will remain viable.

    • While Australia has a low public debt to GDP ratio, its household and financial institution debt burden is among the highest in the world as a proportion of GDP, which makes it more vulnerable than we might think to a credit crunch.

    • The global energy market did not trigger this crisis, but it will play a big part in its aftermath. Financial disruption will see spikes in oil prices, adding to general volatility. In the longer term, as oil extraction becomes more expensive, oil shortages will make economic recovery more difficult.

    • The scale of the present financial crisis is beyond the capacity of governments and financial institutions to resolve. While they will seek to retain central control, inevitably it will devolve to regional and smaller units as global trade slows and local resources take on greater value.

    • We need to resist the urge to blame someone else, and to think constructively about how we can best manage this situation for both our personal benefit and — just as important — the benefit of our communities.

    • This brings opportunities to foster a more decentralised economy, drawing more on local skills and resources and less dependent on large-scale trade or government programs.

    • In doing so we must work with others, because we cannot get through the coming hard times alone, and that brings numerous benefits. We don’t have to live like kings or queens; in living a simpler life, more focused on community, we can rediscover what it means to be human.

There are some caveats to all this. Though a long-time student of global finance, Foss is neither an economist nor a psychologist. Professionals in either of these fields, and no doubt many others, may thus conclude that she doesn’t know what she’s talking about.

We should be careful about such conclusions. Any wise economist or psychologist will tell you that our future economic and social wellbeing involves understanding well beyond the scope of any particular profession’s tools of trade. Foss has much to contribute to this complex debate.


(Peter Boyer writes a weekly climate education column in the Hobart Mercury and manages the website Climate Tasmania. Foss’s visit was co-hosted by UTAS Sustainability and Peak Oil Tasmania. See HERE for background notes on Nicole Foss.) You can listen to a local radio interview (106.5 FM) HERE.


For those interested, we recorded the question and answer section here: This runs for an hour so sit back!

by Chris Harries

More than anything else, cars represent our freedom and independence. We’ve become so dependent on them we’ll do almost anything to not let go. And, let’s face it, most of us like driving. So with climate chaos and the prospect of petrol prices going through the roof it’s not hard to see why so many people are seduced by the prospect of simply switching to a nice, clean, ‘pollution-free’ electric car.

With at least a dozen electric and electric hybrid models hitting the new car market(#1), the age of the electric car is coming, so let’s have a look at some practical and ethical implications.


The ‘pollution-free’ myth

Contrary to a widespread misconception, an electric car has approximately same energy consumption and carbon dioxide pollution performance as an efficient petrol engine, taking all factors into account. That’s if it is charged on an electricity supply that is delivered by fossil fuels. (This link provides calculations showing why this is so.)

On the other hand, an electric car that is charged by a renewable power supply will pollute less and use less energy, as shown below.

Before we jump to any half baked conclusions about the wisdom of switching Tasmania’s car fleet to electric, its important to add three caveats:

    1. For all intents and purposes, any extra demand on the Tasmanian power grid is delivered by fossil fuel energy at present. That is, in broad environmental terms it’s not worth doing – at least until such time as we produce an excess of renewable energy to supply the new demand that electric vehicles would add to the power grid. To do that would require a very substantial investment in wind farms (or similar) dedicated to that purpose.
    2. Switching from petrol to electric vehicles does not take into account the significant embodied energy that would be entailed in converting the world’s car manufacturing infrastructure from petrol to electric vehicles. An environmentally minded person would do best by keeping an old car so long as it is fairly small and energy efficient – owing to embodied energy needed to manufacture an electric one along with the new power supply infrastructure to charge it up.(#2)
    3. That said, comparing energy performance of petrol-versus-electric will be of little relevance when we start to run out of liquid fuels. In which case, if we are desperate enough to try to maintain private transport as our main means of getting around, then there will be little choice but to eventually convert to electric vehicles. That conversion is going to happen anyway, because modern society in general, and car manufacturers specifically, are desperate to maintain business-as-usual and electric cars will gradually begin to replace petrol ones. [A wholesale conversion of the world's 800,000,000 cars would take about 30 years (most cars now being produced are still petrol ones), by which time we will be in the midst of a major global energy crisis and this debate may by then be rather irrelevant.]
How do we charge them up?

To avoid this (see pic below), there is a view that electric vehicles should be powered via a rapid expansion of renewable energy. A hitch here is that if expansive renewable energy systems are installed to try to power Tasmania’s 500,000 registered vehicles, then that new renewable energy capacity can’t be used also for existing energy purposes, such as to supply electric power to our homes and factories etc. So a major shift to electric vehicles would soak up most renewable energy growth for decades, and thus retard the phasing out of existing fossil fuelled power plant. We can’t have our cake and eat it too.(#3)

In any event, the practical reality here in Australia is that the majority of new electricity production, at present and for the foreseeable future, will come from new gas powered generating infrastructure, not from wind farms. This is simply a function of what is happening at a policy level, gas being seen to be able to provide base load power at fairly low cost and able to be built very quickly. Thus, the first generation of electric cars in Australia will, in real terms, receive their electric charging power mostly from gas-fired power stations, whether we like that or not. (It’s probably more efficient to convert a petrol car to burn gas directly than to burn gas in a power station to power an electric car indirectly.)

In a world context, owing to limitations in producing such an immense volume of added-on renewable energy, arguably only nuclear power would be able to provide the additional power capacity that would be placed on national power grids around the world. Thus, in a global context, unqualified advocacy of electric cars is tantamount to advocacy of nuclear energy. For those who have concerns about nuclear energy this poses a moral dilemma.

For those who dearly want to own an electric car but who also want to guarantee that it is powered by renewable energy then they would probably need to personally install enough solar or wind capacity to provide that renewable energy – which then increases the capital cost of the car by at least $20,000 – not in the reach of most people.

Cost of running an electric car

The above describes energy efficiency and pollution attributes of petrol cars versus electric cars – not the cost of running them.

In the first instance (whilst the electric vehicle market is very small) it will be significantly cheaper to run an electric car… about half the running costs in the US, where petrol is cheap, perhaps a quarter in Australia. It’s hard to say how this will change over time. Electricity from renewables will end up pushing up electricity power costs, but the cost of liquid fuels will rise too, perhaps even faster.

For people who don’t care much about environmental factors, then it may be in the interests of their hip pocket to go electric regardless – that is for those who can afford the prohibitive cost of buying a new electric car.

For most people on lesser incomes – who don’t have that choice – their best options are:

    1. Reduce travel demand
    2. Travel as much as possible by foot, bicycles, public transport and by car pooling
    3. Get the most efficient affordable vehicle they can get their hands on, where private vehicle use is a practical necessity for them.

A sensible solution for many people may be purchasing a motor scooter or powered bike.

Using Tasmania’s hydro-electric energy for transport?

Some have suggested if we were to close down a major metallurgical industry then that would release enough hydro-electric energy to provide for the electrification of Tasmania’s entire transport fleet.

Well, yes that’s true. It may even be a rational economic policy when it comes to reducing Tasmania’s hugely significant import bill for liquid fuels. And it would no doubt increase Tasmania’s economic resilience and survivability if we are faced with a really serious oil crunch.

However, in greenhouse terms not much would be achieved in a global context. Lost aluminium output from Tasmania would be taken up by a smelter somewhere else in the world that would be more than likely powered by coal (or maybe nuclear). Local greenhouse advantage, global disadvantage. A case of exporting our pollution.

(Aluminium, curiously, is a very significant material when it comes to the manufacture of many light weight green technologies like electric cars and solar panels. It seems almost perverse that this metal, for so long the bête noir of the environmental movement owing to the huge power demand required for its smelting, would have to be manufactured in significant volumes to supply green technologies, none more so than for the manufacture of hundreds of millions of light weight electric vehicles.)

Using electric car batteries as a ‘sponge’?

Electric car enthusiasts have been advocating that fleets of electric cars all hooked to a power grid can operate like a very big ‘sponge’ and could thus help to make thermal power stations more efficient by ironing out the power grid’s peaks and troughs, and would also help to offset the fluctuating load that comes from renewable energy sources like solar panels.

At present this idea is a pipe dream, though it may become valid in years to come. However, this is much less of an issue here in Tasmania where our hydro-electric system already serves that function very well, having an instant capacity to provide for fluctuations in power load.

Spot the difference!

Rather than think in black and white terms, we need to think about choices. Whether electric vehicles turn out to be a plus or a minus for society will depend entirely on our attitude to them, what the corporate market creates and the policy setting in which electric cars are brought in.

The car on the left symbolises the environmentalist dream, a modest electric vehicle that can help us get around with a smaller footprint and so aid the transition towards more sustainable future.

The car on the right (Chevy Volt electric) symbolises what big car manufacturers are saying: ‘Unless electric cars match the power, acceleration and range of petrol cars (what people have come to expect) then hardly any will sell, people won’t make the switch.’

Though we may dream of the one on the left, what churns out of the factories may well be the one on the right.

What to advocate?

Electric cars will be a feature of future society. They will have an important role to play. Not all of Tasmania’s transport needs can be met by other means. However, there is a need to hose own a popular romantic notion that electric cars are somehow non-polluting and offer a green ticket to heaven for anyone who buys one.

If our priority is to reduce resource consumption and CO2 pollution, we’ve no choice but to focus on getting additional power load from sustainable sources before thinking about transforming our fleet of cars to electricity.

If electric car policies are pursued in conjunction with policies to develop matching renewable energy supply (new hydro dams or wind farms) then there would be a clear efficiency advantage. The downside to that is that any such new renewable power that we generate would then be used for that (new) purpose rather than to offset existing imports of thermal power from the mainland. Still, it may be a better way to go.

I would add that any strident advocacy of electric vehicles feeds our society’s lust to maintain at all costs our patterns of unsustainable living. Every step along the way, the electrification debate needs to be placed into the much more important context of making our cities and communities less car dependent. Lose sight of the larger context, then we lose the sustainability argument and unintentionally end up feeding the other side of the debate instead.

What about electric public transport?

It is important to differentiate electrification of private cars and that of public transport. The latter has a significant environmental, energy and social advantage, especially post peak oil.

And it’s not a pipe dream. When I arrived in Tasmania in 1960 Hobart had electric tram and trolley bus services and also a motorised suburban rail car that fed people in from the northern suburbs. With political will, how easily could we bring those services back, especially with even more advanced technology that we now have to hand?


References

    #1. Plug in cars: See here a range of electric vehicle models being brought onto the world market.
    #2. Old clunkers: If you drive a fair bit, this article says it is more energy efficient to ditch on old car rather than hold on to it. (Most petrol guzzling ‘clunkers’ are not old, they are fairly new cars with oversized engines.)
    #3. Beyond Zero Emissions: This non-profit group believes that in an ideal world we could ‘have our cake and eat it too’ – if government pulls out all stops. BZE has presented a robust plan for Australia to go carbon neutral. The plan is based on the premise that government acts on climate change without restraint.

by Chris Harries

How can your local council respond to peak oil in the best possible way?

Some councils are large and well resourced. Others less so. Some have progressive councillors elected. Some may have already taken steps to address the issue. Most have not done so yet. Some will be much more impacted by high fuel prices than will others.

In short, no one-way-fits-all. So here you go in 7 easy steps:


Remember: Approaching your local government representative is not as forbidding as you may think. Most people have an elected councillor living somewhere in or near their neighbourhood. They are normally quite friendly and approachable and (even where they may disagree with you) will listen, provided that you approach him/her in a courteous, respectful manner.


Here is a sample motion that can be put to any council:

    That a report be prepared to examine the potential impacts of Peak Oil on:

    1) Council’s operations
    2) Local businesses
    3) Local ratepayers

    That the report further examine some of the policies and practices of leading councils in addressing Peak Oil and report on their potential to be used for the benefit of the council and the community.


The article below is a summary taken from an advisory report (pictured).

It’s a basic checklist for anybody who wishes to influence local government on the multiple ways that councils are able to respond to the Peak Oil issue.

Click here to download a complete copy of the report.


Summary

The decline of global oil production will radically change the way our societies are run: our transport systems, how we produce food, where we work and live.

There are a great many things that councils must do, and policies that need to be changed, if we are to have any chance of mitigating the economic effects of peak oil. On the plus side, some of these initiatives already exist (recycling, etc.) but these efforts need to be significantly expanded, and entire areas of policy remain unaddressed.

The continued expansion of road and air infrastructure no longer makes any sense. Forecasts of a massive increase in road travel over the next thirty years are based entirely on historical data, and will soon be rendered meaningless by peak oil. New major road developments run the risk of turning into expensive white elephants. Instead, we must start preparing for a contraction in all travel modes that depend on oil.

Food supplies should be of primary concern. Prices are already soaring globally, partly due to the dash for biofuels. As oil production declines these pressures are only likely to increase, and the dilemmas they pose will only sharpen in the future. In a world of constrained transport, food security will increasingly depend upon local supply. We need to start planning for these changes now.

The most fundamental change needed is in the way people think. Local policy will be fundamental to the transition to a lean-energy future, but councils cannot achieve everything by themselves; the necessary changes will require much greater co-operative spirit within and between communities in future. Hearts and minds are critical; now is the time to change them.

1. Preparing for peak oil
Peak oil means local authorities need to plan for the likelihood of rising oil prices and shrinking fuel supplies. First steps should include:

  • A detailed energy audit of all council activities including transport and buildings. This will point the way to immediate cost savings, emission reductions and greater energy security, and better prepare the authority for any short term interruptions to energy supplies
  • An in-depth assessment of the impact of peak oil on the local economy, environment and social services including food and agriculture, health and medicine, transport, education, waste, water supply, communications, and energy use
  • The development of an emergency plan to respond to sudden interruptions in oil supplies and/or sharply rising oil prices, with a particular emphasis on ‘at risk’ communities
  • Set specific targets for reducing oil and natural gas consumption in the local government, business and household sectors, by a significant proportion within a defined period
  • Encourage a major shift from private to public transport, cycling and walking, through investment in public transport and expansion of existing programmes such as cycle lanes and road pricing
  • Reduce overall transport demand by using planning powers to shape the built environment
  • Shape planning rules to encourage the greatest energy efficiency in new and existing buildings
  • Promote the use of locally produced, non-fossil transport fuels such as biogas and renewable electricity in both council operations and public transport
  • Prevent infrastructure investments that are not viable in a low energy society
  • Develop rigorous energy efficiency and energy conservation programmes that help businesses and individuals to reduce their oil dependency
  • Support the growth of businesses that supply renewable and energyefficient solutions
  • Launch a major public energy-awareness campaign incorporating leaflets, the internet and an expanded network of energy-saving advice centres. The more people understand peak oil, the more likely they are to support or accept demand management measures
  • Find ways to encourage local food production and processing; facilitate reduction of energy used in refrigeration and transportation of food
  • Set up a joint peak oil task force with other councils, and partner closely with existing community-led initiatives such as the Transition Network and the Relocalization Network
  • Adopt the Oil Depletion Protocol and the ‘Five principles’ proposed by Post Carbon Cities

2. Peak oil and climate change
Council policies on peak oil and climate change should be closely coordinated and mutually reinforcing. Most policy options will help mitigate both problems, but where priorities conflict, peak oil must be given adequate weight. Councils need to understand and connect these issues in both strategy and internal and external communication, and should propagate this understanding into the wider local, regional and national government strategic framework

3. Education
Councils need to develop positive ways to educate the public about peak oil, to effect behaviour change and reduce oil dependency throughout business and the community. Local authorities should distribute educational leaflets to households in their area, focussing on positive solutions and the incidental benefits, such as the impact on climate change. The role of institutions and individuals, and the need for immediate action, should all be emphasized

Where councils already operate a service offering information and advice on climate change and energy saving, its remit should be expanded to include peak oil. If a council does not offer such a service, it should consider setting one up

Councils also need to conduct an internal education and awareness-raising programme to inform all their councillors, officers and employees on peak oil issues and the available solutions towards reducing oil dependency

4. Expand existing initiatives
Many initiatives are already underway at the local government level that will help the transition from pre-peak plenty to post-peak scarcity, for example: road pricing, energy efficiency/insulation programs, promotion of renewables, recycling/reuse. These can all be further legitimised as policies that will help mitigate peak oil; if the general public understand peak oil, they are more likely to participate and support local government initiatives in these areas

5. Organization
Each local authority should consider nominating an officer to develop and coordinate its response to peak oil both internally and in cooperation with other councils. Where possible, councils should set up a task force on peak oil

The council’s peak oil task force should partner closely with existing citizen initiatives which are already working on energy planning to foster community based solutions

References:
See also related articles here and here.

This forum was a follow-up to a successful public forum held in 2010. Since then it has become evident that the most responsive arm of government to pressing oil depletion issues has been local government, which has close links with affected communities and businesses.

The forum attracted 80 people, including many local government representatives. A summary of proceedings can be downloaded HERE and a DVD is also available.

Meanwhile, if you would like to be put onto our update list, please click HERE.

by David Hamilton

[This article refers to the Tasmanian government's Oil Price Vulnerability Study, currently being conducted]


Why supply is an issue too.

The Background Info section of this web site explains that oil fields inevitably decline, and since peak discovery was in 1964, global oil supply will shortly enter an inevitable decline – the “second half of the Age of Oil”. Thus, reduced availability will be an absolute constraint: oil will simply become increasingly unavailable, regardless of price.

Put simply, the fact of peak oil means the end of business as usual.

What decline rate is expected?
The rate at which oil fields decline varies from field to field; in addition the companies operating the fields can usually reduce the rate of decline or delay the worst of the decline by spending money trying harder and harder to extract the diminishing amounts of oil left in the field. Predicting the global rate of decline of oil supply once we are clearly past the peak is therefore difficult. Most predictions seem to be in the range 2% to 4% per year, but higher predictions can be found. If the decline is a steady 2% per year, then oil supply will halve every 35 years; if it is a steady 5% per year (at the higher end of the predictions), then oil supply will halve every 14 years.

The time frame for the Tasmanian Oil Price Vulnerability Study is 20 years, so even at the low end of the range of predicted declines, the availability of oil will decrease significantly over the period, as we appear to be already past the absolute peak of oil production. There is a further issue the Oil Price Vulnerability Study is ignoring: whether the oil that is available will be distributed around the world in proportion to how it is currently used. For example, oil exporting countries could decide that they want to slow down the rate at which they export oil to allow a larger buffer for their own use over the years.

What are the implications for oil supply?
Putting these factors together, the outlook for oil supply over the next 20 years is at best a gradual decline of around 2% per year; at worst a larger decline will underlay a tumultuous period which includes rapid changes in availability and conflict over access to oil.

What difference does including supply issues make?
All of us make decisions based on assumptions about the future. When we move house, change jobs, buy cars, we are assuming (perhaps unconsciously) what the future will be like, and often part of that assumption relates to future availability of petroleum fuels: petrol, diesel and jet fuel. A person knowing that price rises were inevitable might decide that given present and expected income and living expenses they could manage the price rises with a slightly smaller or more efficient car, or a bit less travel – life would go on much as at present. If however a person knows that fuel will be subject to occasional severe shortages and will consistently become less available, then they are more likely to decide that the future will be significantly different from the past, and change the decisions they would otherwise make.

Nick Towle et al’s table, below, summarises the differences that considering supply as well as price makes:

by Christine Materia

Tasmania, like the rest of the world, is facing ‘The Long Emergency’ – the greatest challenge that it is likely to ever face. Oil depletion is at the core of this challenge.

The hard cold truth is that Tasmania is part of the world and although we may produce plenty of hydro-electric power, hydro provides just one third of our direct energy consumption – oil and gas provide the rest. (We actually consume even more in embodied energy – particularly in the foods, fertilizers and all of the manufactured goods that we import.)

Each and every Tasmanian – young and old – consumes on average two tonnes of liquid fuel each year. We import over one billion litres each year and the cost of these imports comes to over 1 billion dollars annually.

In Tasmania, over 90% of all travel is made by car. Our freight & food supply systems are heavily dependent on oil. Transport and food represent most of Tasmanians’ weekly expenditures.

Our economy is also heavily reliant on imported oil. As petrol prices rise, transport costs for business will increase. So too will export costs. These costs will then hit consumers. Without support, sectors of our economy and society will face hard times.

Peak Oil will have profound implications across the board – in all sectors of the economy, for farmers, for fishermen, for tourist entrepreneurs, for transport planners, for local governments and for ordinary folk who just make a living and go to work.

How will our economy fare when oil prices go through the roof? How will we cope when the constant drip of oil disrupts our normal everyday lives? What lies in store for the next generation?

Tasmanians may feel safe and disconnected from the rest of the world, but we are locked into an oil-consuming culture that has reached a climax point and is going to radically change.

On the bright side, Tasmania is well resourced to develop liveable cities and towns and an economy that is much less dependent on dwindling oil supplies. But such a future is only possible if the Tasmanian government acts quickly.

The pages in this website will give you a feel for the challenges we all face and the urgency with which we, the Tasmanian people, should be addressing them. Most importantly, we hope they reach the ears of our political decision makers who have a duty of care to respond appropriately. Strong policies are needed that will build economic resilience and enable vulnerable Tasmanians to cope with sky rocketing fuel prices.

There are some great people in all parts of this island who have become awakened to these challenges and who are creatively changing their lives to meet them. Please do feel free to join with this great ‘living adventure’.

(Christine Materia has worked extensively with local government in Tasmania, Western Australia and Victoria in the area of climate change, sustainability and natural resource management. She was responsible for establishing the Tasmanian Local Government Carbon Pollution Reduction Program, Tasmania being the first state or territory in Australia to have it’s councils undertake independent monitoring, benchmarking and reporting of their greenhouse gas emissions.)

By Dirk Reiser

How will Peak Oil impact upon Tasmania’s high profile tourism industry and all those stakeholders who depend on tourism for their livelihoods?

The Australian Bureau of Statistics (2010) defines a visitor as ‘a person taking a trip to a destination outside their usual environment for business, leisure or other personal purposes’. From this definition it becomes clear that a visitor has to move away from their home. In the majority of cases, fossil fuels are used to do this.

The aviation industry alone consumes 243 million tomes of fuel/year or 6.3% of world refinery production (Nygren, Aleklett & Hoeoek 2009). Tourism, in particular international tourism, therefore relies heavily on the consumption of oil. Aside from transport, construction for tourism purposes is another high user of fossil fuels.

The relationship between peak oil and tourism, however, is not well-researched despite fossil fuels being vitally important for the very oil intensive tourism industry (Becken 2006; 2010). In the foreseeable future, demand will outstrip the supply of oil or at least cheap oil, therefore creating enormous problems for the globally growing and important tourism industry, destinations and societies.

Within a 60 year period the number of international tourist numbers increased from 25 million in 1950 to 935 million in 2010. It is expected that this number will grow to 1.6 billion by the year 2020 (United Nations World Tourism Organisation 2011). Moreover, IPK International (2011) estimates that humans took 9.8 billion global domestic and outbound trips.

Travelling is still very much a privilege of the rich in the developed world who are already over-using a number of available resources. This will have to change, in particular as there are more and more people from developing countries ‘joining’ in on the pleasure of experiencing a holiday – or economically poorer groups of the global society will be squeezed out of the travel market by rising costs.

Tourists, the tourism industry and destinations will have to change to adjust to the situation where oil becomes more expensive. However, research on the topic is very limited and tourism forecasts rarely consider price hikes or oil shortages as an important factor (Becken 2010).

In summary, the impact of less affordable oil is complex and difficult to assess, but it appears that an interdisciplinary approach to understand the many dimensions of the relationship between oil and tourism is essential in order to be able to manage the associated risk – especially for highly transport dependent long-haul destinations like Australia in general, and Tasmania in particular.

References:
New Zealand researcher Susanne Becken has studied the link between peak oil and tourism at great length. Click the link for a list of her studies.
Fuelling Tourism
Susanne Becken slide presentation
Environment-friendly Tourists: What Do We Really Know About Them?
Tourism and climate change: risks and opportunities

(Dirk Reiser is researcher at the University of Tasmania specialising in recreation and related issues. He is also on the Board of Directors of Sustainable Living Tasmania.)

© 2011 Peak Oil Tasmania Suffusion theme by Sayontan Sinha