Alarm bells ring loudly - It’s time we considered all options

THE psychologically significant barrier of $100 a barrel for oil has been breached but, in reality, this is no more than a milestone along the unending road towards ever-more expensive and, probably, ever-more scarce oil and energy.

A host of commodities have reached record levels, including gold, which earlier closed at a record $861 and ounce.

According to US government figures worldenergy consumption will rise by 57% between 2004 and 2030. Total energy demand in the non-OECD countries will increase by 95% compared with an increase of 24% in the OECD countries.

These are significant and challenging figures — alarm bells ringing loudly really — especially for a small, relatively remote economy without any significant natural resources of its own.

The next landmark for oil is $101.70. This is the level, adjusted for inflation, at which oil peaked in 1980 during the second oil crisis. Spot gold prices hit $861.20 an ounce, bursting through the previous high of $850, also reached in 1980.

It is inevitable that these benchmarks will be surpassed and with each new high it becomes more and more difficult to accept that our response is sufficient to sustain our energy needs.

The picture is not in anyway improved when set against a background of utter dependency on imported energy, a slowing economy and exchequer returns less impressive than they have been in recent years.

They appear even more stark when you consider our inability even to mention the “n” word, our cultural inability to grasp the threat of an energy-scarce future and to even discuss nuclear power in any meaningful way.

Environment Minister John Gormley has commendably introduced our first carbon budget and a new way of taxing cars and, while a start is a start, the measures and the impact they might have, seem disproportionate to the challenges facing us all.

In reality they are on a par with an alcoholic giving up sherry trifle in an effort to confront his drink problem. We need to do much, much more to prepare for a future where energy and oil might be a scarce resource.

If we are to sustain our society and our economy we need to make ourselves as independent as we can from imported oil or gas. To do that we need to consider all the options, not just those that fit in with a particular view of the world.