Peak Oil an election issue?
June 18th 2010 03:44
The next Oz election will probably revolve around the new mining tax, industrial relations, immigration and the other usual issues. But Peak Oil will be lurking in the background and may generate some heat. Lloyds and Chatham House just released a report warning of problems for business as oil shortages occur following on the recent estimate of troubles in 3-5 years by the Pentagon.
As much as Peak Oil will cause trouble for households as car and some power costs rise, it will have a serious impact on key economic sectors, especially mining and agriculture. In fact, Peak Oil would present much greater challenges to miners than any sort of super-profits tax. They rely on cheap oil for exploration, production and transport to buyers. So perhaps the miners would be better off trying to get the Government to pay attention to this matter rather than avoiding further taxation.
Of course Oz does have access to substantial gas reserves, although most of them are offshore. However, if they are locked up in long term contracts with overseas buyers making the gas available for domestic use may be tricky.
As much as Peak Oil will cause trouble for households as car and some power costs rise, it will have a serious impact on key economic sectors, especially mining and agriculture. In fact, Peak Oil would present much greater challenges to miners than any sort of super-profits tax. They rely on cheap oil for exploration, production and transport to buyers. So perhaps the miners would be better off trying to get the Government to pay attention to this matter rather than avoiding further taxation.
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