Beijing under pressure to tackle oil shortages
Rising anger in China over spreading fuel shortages is increasing pressure on Beijing and the local oil majors to devise a new pricing policy to head off future crises over oil supplies to motorists.
Rising anger in China over spreading fuel shortages is increasing pressure on Beijing and the local oil majors to devise a new pricing policy to head off future crises over oil supplies to motorists.
What those who see oil production just as a process limited by price, are NOT getting is that rigs and pipe and cement and energy are all costs that oil producers have to pay. And that additional cost is also reflected in the new higher prices for everything made with oil. As we look harder and harder for more oil, this demand drives prices for the equipment and materials we use through the roof.
As oil prices top $65 a barrel and Americans brace themselves for continued price hikes at the pump, leading energy experts and former high-level government officials discuss the nation’s precarious dependency on foreign oil in the face of ever-growing demand, terrorist threats and instability in the Middle East. (AUDIO and via radio stations)
If an assured supply of oil is cut off to the West, New Zealand could again face the prospect of car-less days. The option is raised in a consultant’s report for the Economic Development Ministry that looks at an oil crunch and how the country could cope.
Comment: New Zealand’s initial response to IEA emergency consumption reduction requirements. NZ regular gasoline is currently NZD$1.45/litre, equal to USD$3.87 per gallon.
With gasoline nearly $3 gallon, there needs to be a mainstream discussion of the alternatives.
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“The Greens believe we need to have the mechanisms in place to deal with both a short-term emergency, such as this report envisions, and Peak Oil, where we are facing steadily rising prices over the long term and eventual shortages no matter what the price,” [Green Co-Leader] Ms Fitzsimons says.
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The Government has made the call to people to appreciate the looming crisis arising out of the unabated price of oil in the world market. According to Press Secretary Ignacio Bunye the country should face this challenge squarely and close ranks.
Supply of Oil vs the Demand for Oil.
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