The Oil Crunch

The Oil Crunch is a report just published by 8 of the UK's leading companies (Virgin, Scottish and Southern Energy, Stagecoach, Arup, Foster and partners, Yahoo, First and Solarcentury).

In essence they believe that we face an imminent crisis arising from oil supply in the UK - this might occur as early as 2011. This is a quote from the Executive summary.

Currently, it seems to us, the government places climate change as first priority for policy making, followed by energy security, with peak oil (if it is viewed as a problem at all) in last place. In our view the more serious short-term climate-change impacts – substantial as they will be – will not be the first to wash over our economy. Peak-oil impacts are more likely to arrive first, with 2011-13 being a worryingly early candidate window based on the evidence in Opinion A. The core priorities we think the country faces are the reverse of the government’s current thinking.

This is a serious report with a foreword by Lord Oxburgh, former chair of Shell -

Currently, it seems to us, the government places climate change as first priority for policy making, followed by energy security, with peak oil(if it is viewed as a problem at all) in last place. In our view the more serious short-term climate-change impacts – substantial as they will be – will not be the first to wash over our economy. Peak-oil impacts are more likely to arrive first, with 2011-13 being a worryingly early candidate window based on the evidence in Opinion A. The core priorities we think the country faces are the reverse of the government’s current thinking.

The full report can be downloaded here. A summary from the Arp website can e viewed here and media report is contained in the Guardian.

For me this is one of the most worrying reports I have read - it is not written by environmentalists but by industrialists. They are basically saying that we have ignored the issue of peak oil and in all likelihood the inpacts will be felt in Britain within 5 years - we will be unprepared for the consequences.