Issues:

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.”

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 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.)

by Sandra Murray

Most people are familiar with the term ‘national security’ but relatively few are familiar with ‘food security’.

Food security means more than relieving hunger. Put simply, it means that all people have enough to eat at all times in order to be healthy and active, and do not have to fear that the situation will change in the future.

It means that sufficient food is physically available, accessible and affordable1 and envisions local cooperation, self-empowerment, and advance planning as the ideal ways to ensure healthy, consistent nourishment for everyone2.

Often considered an issue only for poor or developing countries, food insecurity also exists in Tasmania today and is likely to be as high, if not higher, than in other Australian states. Over 64,000 Tasmanians, or 13% of the population live on or below the poverty line3.

    Existing food security challenges combined with challenges caused by looming oil depletion (peak oil) are likely to mean huge escalation of food prices and reduced food choice. It means that we will need to take a leap from our reliance on industrial grown, processed and transported mainland food to engaging with locally grown food.

This shift will demand tremendous lifestyle changes for many of us who are used to drive-thru fast food and purchasing out-of-season fruit and vegetables shipped, trucked and flown thousands of kilometres to our nearest supermarket.

Understanding the impacts
Climate variability (flood and drought) may be already having a major impact on availability, affordability and continuity of our food supplies. Combined with Peak Oil the likelihood of a food crisis happening in Australia now appears very real. A recent report by the PMSEIC Expert working group warns that nationally we can expect to see years where we will import more food than we export and supports the need for a coordinated national strategy to prevent this4.

In our state both the Tasmanian Food Security Council5 and Tasmania Together 20206 state the importance of Tasmanians having access to good food. This means that regular supplies of locally grown basic food staples, for Tasmanian consumption, such as grain and cereals, some varieties of legumes, lentils, fruit and vegetable (often sourced from interstate or internationally) should be our priority, especially if Tasmania is to become more self-sufficient and more resistant to the challenges that lie ahead.

Building resilience into our food security.
The first steps our Tasmanian communities can take to peak-oil proof our diet is to get local.

In most regions of Tasmania, community groups are already starting to put the goals of community food security into practice. As awareness of peak oil grows, many are starting to understand the meaning of a post-oil future. Their efforts include establishment of community gardens, farmers markets, community-supported agriculture, permaculture groups, food justice movements, and relocalization initiatives. In an oil-deprived future, ventures such as these will be the keys to community health and survival.

Local government needs to play a key role by supporting and helping to develop locally relevant, integrated and long-lasting strategies to address community food security challenges7.

We need to create a Tasmanian food future based in diversified farming, thriving social enterprises, and expanding community food systems: from backyard gardeners to Community-Shared Agriculture could be our future.

We need to create an alternative local food system that can withstand systemic shocks based on the principles of resilience, fairness, democracy and sustainability8.

References:

(Sandy Murray is a dietitian and lecturer at the University of Tasmania. She shares and promotes the benefits of eating local food and is a passionate supporter of community gardens, the Tasmanian farmers and encouraging people to grow their own.)

by Philip Cocker

It’s not possible to respond to oil depletion in Tasmania without tackling the transport issue head on.

As an Alderman I see business-as-usual played out in policy and infrastructure decisions on a regular basis. Millions are spent on developing more car parks to attract cars in to the city. Roadways are expanded to allow faster traffic movements. Then there is the political jostling to waste billions on the Midlands Highway, and on costly projects like the Kingston bypass.

The great tragedy behind these icon projects is not so much the waste but the loss of possibility. Imagine for a moment spending $60 million on public transport instead of the same amount on the Kingston bypass. Or tens of millions on free electric bus transport around the city instead of new car parking constructions.

Long-range plans to spend billions more on roads highlights a deplorable lack of foresight and strategic thought in our administrations – and a lack of political courage to move from the models of the past.

Spiraling petrol prices resulting from peak oil will be devastating for us all unless the necessary action is taken by all levels of government to prepare Tasmania’s transport system. This means judicious and timely investment in sustainable transport alternatives that will allow us to adjust our transport choices away from reliance on private car travel.

Instead of taking these steps we are doing the precise opposite – locking ourselves into urban and industrial transport patterns that can’t be sustained.

Sometimes when I see the lack of connection that humanity and their elected representatives have with these overbearing issues, I experience a desire to see peak oil come into play quickly, in order to force the necessary policy change that are needed. Those feelings don’t last long as I think about many of the potential impacts that carbon fuel shortages will bring and the pain and misery that would eventuate.

To cut to the chase, our transportation systems are over 90% dependent on oil and have been built on an over-reliance on cheap oil, as if it will always be cheap.

While there is some dispute about when oil production will peak, there is no disagreement that oil will soon be much scarcer and more expensive than it is today. This points to a future where oil prices reach $200 or even $300 a barrel. In this situation, the disruption to our way of life will be enormous.

Our ability to transition to a world “beyond oil” will hinge critically on the importance that our decision makers place on public transport, walking and cycling and the ability of technology to deliver sustainable alternatives to the petrol-powered car.

For the average citizen wondering how to respond, here are some useful tips to reduce one’s transport impact.

(Philip Cocker is an elected alderman at Hobart City Council. He is a member of the board of EcoTasmania Inc.)

by Robin Krabbe

Oil depletion will impact heavily on Tasmania’s farm sector. Rising prices of inputs will translate to increased food prices and decreased supplies of food through the market, worldwide. The cost of chemicals and fertilisers – a major cost for many farmers – is directly linked to the price of oil.

Fertilisers are the biggest consumers of fossil fuels in agriculture and, if they cannot be produced commercially using renewable energy in amounts sufficient quantities, oil depletion will ultimately have a major impact on the price and availability of virtually all foodstuffs.

Understanding the impacts
A huge amount of information relating to the non-sustainability of large scale monocultural agriculture from a number of aspects can be accessed on the internet , including the impacts of peak oil and climate change.

To help understand the implications of peak oil and climate change on agriculture, it will be helpful for we citizens to discuss these issues with each other and to get involved with local groups – in particular environmental groups who are concerned about these issues. Sustainable Living Tasmania Tasmania in the South, the Launceston Environment Centre in the North and the North-west Environment Centre in the North-West are examples. They are all helping communities understand the impacts of oil depletion.

Building resilience
The good news about addressing peak oil and climate change is that our responses can deliver positive effects for individual and community health and well-being. And for environmental health. Even if peak oil and climate change did not exist, there are many other spin-off benefits to building reliance at the individual and, very importantly, at the community level too.

Producing food communally has many social, environmental and economic benefits.

In the agricultural sector there are two key responses in agriculture to peak oil and climate change. Both involve win-win processes for both human health and environmental health.

    1) A transition to agricultural production methods that don’t use petroleum-based pesticides, herbicides, or fertilisers

    2) A focus on local production, to reduce the use of fossil fuels in transporting food and other agricultural products.

Local production (you will start to hear the term relocalisation being used) involves much closer feedback loops – meaning that we have vastly increased knowledge of what inputs are going into our food production, and therefore enhanced control over how our food is grown.

Sustainable agricultural techniques also have the benefit of reducing external inputs. For example, organic, regenerative, low-input, and/or closed loop farming, is typically more labor-intensive, and one way of sourcing the increased labour is from urban areas, necessitating a shift of the workforce from highly populated urban areas – eg from Hobart to less populated rural areas, such as Western and North-Western Tasmania.

In addition, carbon sequestration tends to occur at particularly high levels in organic systems, therefore agriculture is one of the most effective strategies for mitigating greenhouse gas emissions.

Reference:
Threats of Peak Oil to the Global Food Supply by Richard Heinberg. This is an excellent summary of how unsustainable agriculture evolved, and gives some good pointers on restoring sustainability.

(Robin has worked for the CSIRO and the Department of Primary Industries Victoria for 17 years. She is completing a PhD at the University of Tasmania, investigating the impact of community food networks and community currency systems on socio-ecological sustainability.)

by Chris Harries

How will oil depletion affect the Tasmanian economy? Which industry sectors would be most exposed? What can be done to build resilience into vulnerable sectors? Are there opportunities for economic growth in a post carbon future? How can the state economy be geared to help protect the livelihoods of the Tasmanian people?

The short answer to all these questions is that we don’t know. Significant modelling studies would have to be undertaken to provide the necessary data to understand all the implications.

What we do know is that our economy is critically oil dependent. We produce no liquid fuels and import all that we use. If oil prices rise there will be a significant cost burden to the entire economy and to individual sectors.

Most exposed will be those sectors that are utterly dependent on oil – that is, those that rely on significant imports and exports of goods, those that have high fossil fuel inputs and those that rely on the movement of people. We could point specifically to agriculture, freight and tourism industries, but all sectors would be implicated in so many ways.

A comprehensive understanding of all such factors is required in order for responsive action to be taken but that should not stop decision makers from taking obvious steps to help build resilience into our state economy.

In the longer term, it will be necessary to foreshadow how the whole world economy will inexorably change in the aftermath of oil decline, because our own economy will be forced to adjust accordingly.

Relocalisation
What does seem certain is that much of the thrust towards a globalised economy will retreat to some extent, as long distance transport costs may become prohibitive, and this may then alter the economics of local production. We may even see some restoration of localised production – especially of agricultural produce and some manufacturing – that has been whittled away during the past three decades.

Building resilience into the economy will have the spin-off effect of building resilience into the Tasmanian community. Being almost totally reliant on a fragile world economy will not be healthy. Goods and services that we rely on for our sustenance and livelihoods should be, as far as practicable, produced locally. There are inspirational efforts already being made in many areas of Tasmania to that end.

The Tasmanian government’s Oil Price Vulnerability Study will help to establish an information base that can answer some of the pertinent questions at the head of this page, but it is in the interest of all citizens and businesses not to sit and wait for government action, there are many steps that can be taken now to build opportunities and minimise risk.

(Chris Harries is a long term advocate for sustainability and social justice policies. He is an active member of the Peak Oil Tasmania working group.)

by John Todd

‘Energy security’ means energy is available when we need it and at a price we can afford. Peak oil means we are no longer able to pump oil out of the ground at ever increasing rates. When this happens, the energy security of Tasmanians will be threatened.

Fuel price will increase as countries try to outbid each other for restricted oil supplies. In Tasmania this will first affect lower income families and individuals who can no longer afford the fuel they need, i.e. their energy security will be threatened. There will be pressure to increase government assistance to low income groups to off-set rising prices, but this means less funding for other government initiatives such as education and health.

Gradually, or possibly quite quickly, the increased price of fuel will cause stress to a larger and larger proportion of the Tasmanian population. Government will simply not be able to subsidise all their needs, so more and more people will just have to make do with less transport fuel than they want.

The other critical issue is that shortages are never evenly spread. Some people will continue to get what they need; they might even stockpile their own supply.

Meanwhile others will only be able to purchase a fraction of what they need, even if they can afford it; and some will find they are unable to purchase any at all. The only option available to Government if this occurs is to introduce some type of rationing, so everyone has access to their fair share of limited fuel supplies. Rationing is something governments don’t even like to discuss, let alone implement.

As individuals, we do not have to wait for Government to act; we can start minimising our own energy security risk by:

    (a)   Purchasing fuel-efficient vehicles, this allows us to still travel but at lower fuel cost;

    (b)  Reducing our need for travel by planning to do all the things we need to do in one trip rather than multiple trips;

    (c)   Walking or cycling more often on short trips; and

    (d)  Lobbying local politicians for improved public transport.

These simple actions are worthwhile because they save money now, but they become crucial once peak oil starts to bite.

(John Todd is an environmental educator and consultant with a long-standing interest in energy and society.)

© 2011 Peak Oil Tasmania Suffusion theme by Sayontan Sinha