AUSTRALIA'S abundant endowment of natural resources has provided a cushion against the need for energy security policies. No longer.
Declining domestic oil production, refinery disruptions, extended supply lines, geopolitical turmoil and the carbon constrained future are all sending warning signals: Australia's easy energy ride is over, and moves to encourage renewable transport energy sources are long overdue.
Others believe there is a widespread view in the bureaucracy that Australia has a window of about 20 to 30 years before peak oil has an impact on global markets. Why worry about renewables while there is a flourishing global trade in cheaper oil?
Rudd's reluctance to embrace renewable fuel is all the more puzzling given that it runs counter to other Labor initiatives. Rudd is prepared to mandate 20 per cent renewables for electricity generation, but not in transport fuel.
Rudd's renewable transport fuel vacuum is also at odds with the global mood. The International Energy Agency argues that between the demands of energy security and climate change challenges, nothing short of an "energy revolution" is required. Global demand for energy, it says, will rise by 45 per cent by 2030, with oil and coal remaining the major fuel sources despite increases in nuclear and renewable energy.
The agency says that while peak oil may not happen until about 2030, shortages could start to show up from about 2015, posing a real risk for Australia's energy security.
http://business.smh.com.au/business/the-good-oil-is-that-stocks-are-already-running-thin-20090417-aaar.html
