The Bullroarer - Thursday 4th September 2008

ABC - Call for ideas on bringing down fuel costs

The Tasmanian Premier David Bartlett has committed to providing funding to develop ideas to bring down fuel prices.

NewsTalk ZB - Oil companies must now sell biofuels

Parliament has passed into law the Biofuel Bill, which National claims will push up petrol prices.

The Government Bill aims to increase the amount of biofuel, such as byproducts of the dairy and beef industries, to be used to power motor vehicles.

The Bill passed tonight with a 20-vote majority. It means biofuels will have to make up 0.5 percent of oil companies' sales this year with obligation levels rising to 2.5% by 2012.

Science Alert - Tackling The Global Food Challenge

World food security, as Australian consumers and others are fast discovering, is at its lowest in half a century. The precipitous fall in world food stocks in the past seven years is forewarning of what we can expect in the next few decades as civilisation runs low on water, arable land, nutrients and technology, as marine catches collapse, as biofuels grow and energy costs rise, and as droughts intensify under climate change.

Stuff.co.nz - Litigious NZ a 'turnoff' for oil explorers

Oil and gas companies are too quick to start legal battles and that is a turnoff for international explorers who see New Zealand as "irrelevant".

Business Day NZ - Women and oil simply do not mix

Dutch Disease may sound like a variant of syphilis or an obscure tree fungus but is actually an economic term.

According to the Social Science Research Network, it “refers to the fears of de-industrialisation that gripped the Netherlands as a result of the appreciation of the Dutch currency that followed the discovery of natural [oil] deposits”.

The Age - Tough gig for new transport minister

Labor has neglected transport in NSW and whoever takes over the portfolio from retiring minister John Watkins has their work cut out for them, opposition spokeswoman Gladys Berejiklian says.

Mr Watkins, who is also deputy premier, announced on Wednesday he was quitting politics, prompting embattled Premier Morris Iemma to announce he will reshuffle his ministry.

ABC - Diesel fuel runs low in SA

The Civil Contractors Federation says diesel fuel supplies are low in South Australia and could disrupt major works.

It believes the level in storage tanks at Birkenhead is extremely low and a tanker of fuel from Singapore has been delayed.

Federation chief executive Peter Nolan believes bowsers are being given priority for available fuel.

He says some civil construction companies may consider closing sites because of the problem.

SMH - NSW goes backwards as rates, fuel costs bite

NSW was the only state or territory to record negative growth in the June quarter as its households were hit hardest by high interest rates and petrol prices.

Marlborough Express - Huge fuel theft

More than 4000 litres of fuel has been stolen from a logging site near Rai Valley.

Senior constable Maurice Horne of Havelock police said the thieves broke down a gate to get to a skid site a couple of kilometres from the main road.

NewsTalk ZB - Oil flowing at onshore oil field

Listed oil exploration company Austral Pacific Energy is getting positive results from initial testing of a new well at its onshore Cheal field in Taranaki.

Cheal A7, is producing 200 barrels of oil a day and the company believes it is capable of reaching a maximum flow rate in the range of up to 280 barrels a day.

Mercury - Hydro rules out power rations

HYDRO Tasmania has ruled out power rationing despite the state's record dry.

Chief executive Vince Hawksworth said rationing would only damage investor confidence in the industry's ability to meet demands.

Hydro is in the grip of a record dry spell with water storages at just 22.4 per cent of capacity.

It has been forced to buy 38 per cent of its power source from Basslink, gas and wind energy suppliers to compensate for its energy downfall.

The increased spending on outsourced power, which cost $100 million last financial year, is fuelling concern that power bills are poised to increase.

Money - UPDATE 1-Australia trade swings to deficit on oil jump

Imports rose 3.9 percent in July to A$23.6 billion, largely due to a hefty 29 percent increase in fuel imports.

Analysts noted the recent slide in oil prices, from a peak above $147 a barrel in July to $109.00 on Thursday, would likely see the import bill fall back in August.

The Age - Emissions trading will hurt most, says UBS

BABCOCK & Brown Wind, Woodside Petroleum, Energy Resources of Australia and Paladin Energy have been identified as among the companies that will benefit from an emissions trading scheme, according to a "winners and losers" analysis by UBS investment research.

The Examiner - FUEL SUMMIT - Free buses, alternative fuels part of the push

SIX TOPICS

•Transport dependent industries - How to mitigate rising fuel costs affecting industry?

•Connectivity-Disadvantaged - How to support those most affected by rising transport costs?

•Public transport - How can we increase the availability and usage of public transport options?

•Alternative fuels - What are the fuels of the future and how to best take advantage of them?

•Transport efficiency - How to increase the use of more efficient transport?

•Urban form - How to better plan our cities and urban centres for future transport challenges?

"The Tasmanian Premier David Bartlett has committed to providing funding to develop ideas to bring down fuel prices."

We could use less. Lower demand, price drops, that's good old Smithian economics.

What do I win?

Here's an idea for lower fuel prices - let's just invade a country with lots of oil!

....Oh, we already did that, and fuel prices went up, eh? ....Hmmmm...

OK , if invading makes the price go up, let's try *withdrawing* from a country with lots of oil...

(Seems to be working so far! - We folded our flag up in Iraq in early June and the price has been plummeting ever since...)

;-)

Saw an amusing bit on the news last night. The CommSec person was saying, "well the Aussie dollar dropped a bit, mainly because we'd forecasted a $100 million trade surplus for the month, but got a $700 million trade deficit instead, but that's okay because if you take out oil, then we're doing alright in trade!"

Um... but if we took out oil, then we'd have less exports, too, because how would we make and ship them? Only a trained economist could come up with such nonsense.

"If we take labour out of the costs of our company, it's doing really well!"
"But with no labourers, we produce nothing, and sell nothing..."
"So?"
"..."

damn i love economists..

As for a "gradual recovery aided by a fall in oil prices" Trichet could not possibly be more off base. Falling oil prices are a result of a slowing world economy. Trichet's statement can roughly be translated to "the economy will pick up because the economy is slowing".

thanks to Mish.. http://globaleconomicanalysis.blogspot.com/

Groan.

Where do these clowns come from ???

Sounds like a politician. Needs to be seen to be doing something so he makes a committement to providing funding to develop ideas. I think that all the Aussie TOD crew should bid for the funding, meet up in Tasmania, drink their grog, eat their food, harrass their women and then tell them Kiashus idea!

I also have this brilliant idea for carbon sequestration.

DON'T
DIG
UP
AND
BURN
FOSSIL
FUELS

Coal, oil and natural gas kept the carbon in them quite well for hundreds of millions years until we started digging up and burning them at a stupid rate. Just look at the tar sands in Canada - that lot really doesn't want to be burned!

It's like that old racist and anti-racist joke, "how do you stop a black man from drowning? Take your foot off his neck." Which applies a lot to how we treat Aboriginals and our relations with the Third World, but that's another story...

Lets call it PREQUESTRATION

I like it!

Is there a business plan here?

Suppose you own a marginal fossil fuel resource. You know that... but you would play it to the market differently.

What if you were allowed to earn a once off fee from uncertain "forgone" extraction from proven reserves?

Granted, globally the bulk of the remaining fossil fuel might still be extracted... but the perception of availability would be altered.

This might provide further incentive for alternatives.

I'm just speculating here late at night...

After all, sequestration schemes are not going to work without a subsidy or carbon price.

A story on a landfill gas project (and possible test tidal power project) in Geelong - Garbage gas may be more than just hot air

And a few stories from NZ:

Stuff.co.nz - Geothermal electricity powers on.

Geothermal power production could double in the next few years to about 10 per cent of demand - and it will be cheaper than wind power, says Mighty River Power. State-owned Mighty River's new $300 million, 100-megawatt Kawerau geothermal power station is fully operational. It is next to the Norske Skog pulp and paper mill, a big power user in the region.

Mighty River will consider building another similar-sized plant in the same area, says chief executive Doug Heffernan. Kawerau, in the eastern Bay of Plenty, is the biggest geothermal development in New Zealand in 20 years. The geothermal field is expected to run for at least 50 years, or as long as anyone wants to keep a power station at the site. ... Previous government agency estimates suggest only 15 per cent of New Zealand's geothermal potential has been tapped. Geothermal power could produce about 75 per cent of peak demand.

NZ Herald - Wind farm project could jump hoops

State-owned Mighty River Power is asking the Government whether its application to build a wind farm development at Turitea near Palmerston North can be fast-tracked by being called in. The Environment Minister can call in a proposal if it is deemed to be of national significance and direct the matter to either a board of inquiry or the Environment Court. Last week Environment Minister Trevor Mallard announced he was calling in Contact Energy's proposal for a 180-turbine 540-megawatt (MW) wind farm near Raglan.

NZ Herald - Wellington Drive gets US Govt energy tick

Local maker of energy efficient motors Wellington Drive Technologies has been recognised by a United States government energy efficiency labelling programme.

Good to see NZ developing its geothermal resources. I had the good luck to visit Mokai Geothermal plant last year and was told that the availability factor for geothermal was over 97% (better than most coal plants).

The plant manager told me that at least 1500MW of geothermal capacity was available with a further 3000MW subject to more research. About 320MW of geothermal was operational prior to Kawerau starting up. Basically geothermal in NZ could become baseload generation like what coal or nuclear is in other countries. Forget about wind or tidal and develop geothermal first are my thoughts.