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  • US generators embrace wind and carbon tax

    Utilities Owning, Buying More Wind, Planning for Carbon Regulations

    Texas, United States [RenewableEnergyWorld.com]

    Utilities are increasingly embracing wind — owning their own facilities, buying wind-generated electricity from other producers, and even factoring future carbon regulation into their financial equations, said expert participants on a utility panel at WINDPOWER 2008.

    Speaking on the panel were Mike Kotara, executive vice president of energy development at wind power-leading municipal utility CPS Energy; Andy Hesselbach, wind farm project manager at utility We Energies; Galen Barbose of the Lawrence Berkeley National Laboratory; and Matthew Kaplan of Emerging Energy Research.

    As representatives of two different kinds of utilities, Hesselbach and Kotara were able to offer perspectives on the reasons behind their differing wind forays. As a municipal utility, noted Kotara, CPS Energy cannot take advantage of the federal production tax credit and so has no plans to pursue ownership of wind facilities. CPS, however, is the leading municipal utility for delivering wind to its customers; the utility had 501 megawatts (MW) of wind on its wires as of the end of 2007, thanks to its purchases of the renewable energy source.

    We Energies presents a different story. The investor-owned utility owns the recently completed 145-MW Blue Sky Green Field wind farm in northeast Fond du Lac County, Wis., and is looking into owning five or six additional projects to meet its state renewable electricity standard requirements. “We didn’t initially intend to own wind projects,” said Hesselbach. However, when the utility calculated such financial factors as the debt load associated with entering into a power purchase agreement, it decided the wind energy it would deliver “might as well provide some return to our shareholders.” Ownership, he said, is also ultimately cheaper for customers as well.

    Barbose, meanwhile, reported on a study that Lawrence Berkeley conducted on how utilities are valuing renewables as a hedge against carbon regulatory risk. The study took a look at what 15 utilities in the West (representing about 60% of total retail sales in that region) are doing in this area.

    “Utilities are making fairly important strides in evaluating carbon regulation cost and risks in their resources,” he said. Utilities are bringing renewables into their resource plans and portfolio mixes, said Barbose, although some of that is attributable to state renewable electricity standards (RES). Still, he noted, many utilities are including renewables in their mix “well in excess” of their RES requirements as a result of carbon regulation risk.

    While utilities have made much progress on valuation of carbon regulatory risk, much work remains, Barbose said. Methods and assumptions for calculating risk vary widely, and state regulators need to provide guidance to ensure that ratepayers are protected from the associated financial risk, he said.

    “We do have a carbon strategy going forward that puts a [premium] on reducing carbon intensity,” said Kotara.

    Contrasting with Barbose’s analytical and strategic presentation, Hesselbach shared the We Energies experience in getting Blue Sky Green Field built, offering tips and lessons learned on garnering community support for wind projects. We Energies did everything from hosting community barbeques to conducting the usual landowner meetings during the process. He suggested that setting expectations is key so that residents aren’t surprised by the temporary effects of construction. Painting a picture of the construction process-e.g., forewarning of messy roads, construction vehicle traffic, muddy fields, etc.-that may be even more drastic than reality is advisable so that residents are not taken by surprise, he said.

  • Garrett applies bandaid to climate change

    “The announcement coincides with the release of a new report on household energy usage which forecasts an increase in energy usage of 56 per cent by 2020, emphasising the need for immediate, comprehensive and coordinated action on energy efficiency”, Mr Garrett said.

    “The report, Energy Use in the Australian Residential Sector 1986-2020 identifies clear priorities and opportunities for tackling climate change in Australian households and communities and sets the framework for action.

    “The household sector is forecast to grow by almost 4 million homes and over 1,000 million square metres in combined floor space by 2020, creating increased demand for heating, cooling, lighting and electrical appliances.

    “This report estimates that one in four Australians buys a new television each year and that TVs are now the fourth-largest user of electricity, behind water heating, domestic refrigeration and lighting. Without Government action, television energy use is predicted to double between 2004 and 2014.

    “It is critical that we help households identify and invest in the latest cost-saving energy-efficient technologies in appliances, and energy and water saving design features.

    “For more than 11 years, the previous Government sat on its hands when it came to dealing with climate change and helping Australians take steps to reduce the size of their carbon footprint.

    “Since coming to office, the Rudd Government has announced and funded $1 billion in measures including our Green Loans program, assistance for landlords to install insulation in rental homes and the expansion of labelling and new standards for energy-efficient appliances.

    “On World Environment Day we want to help all Australians ‘kick the carbon habit’.”

    Details of the new measures:

    Television and other electrical appliance labelling
    The Rudd Labor Government was elected with a commitment to deliver on a 10-star appliance rating scheme. These new appliance labels, which will be in phased in over the next 12 months, will help consumers identify super efficient appliances – like clothes dryers, washing machines and dishwashers.

    The voluntary television energy label is similar to the energy label used on fridges, washing machines, clothes dryers and air conditioners, helping consumers save energy, save money and reduce greenhouse gas emissions.

    This new voluntary scheme will come into effect within the next six months, backed by a proposal to introduce mandatory labelling and standards next year. Combined with the acceleration and expansion of minimum greenhouse and energy performance standards, and the introduction of new 10-star labels, these measures will help consumers save energy and provide manufacturers with recognition for energy-efficient innovations.

    Your Home Renovator’s Guide
    The Rudd Government wants to make it easier for people to access information on ways to ‘green-up’ their homes, with measures announced in the Budget like our new one-stop web portal to provide consumers with a single window to all federal, state and local government environmental programs for sustainability at home.

    The Your Home Renovators Guide, was developed in partnership with the Victorian Building Commission, Sustainability Victoria, other state Governments, the Centre for Design at RMIT and the Institute for Sustainable Futures at UTS. Every page of this guide provides tips to help home owners save money, and make their homes healthy and comfortable and more environmentally friendly from the front door to the backyard.

    There are 4.2 million homes in Australia that are over 20 years old so the Your Home Renovator’s Guide has the potential to inform a large portion of the Australian community now and in the future, helping drive down energy usage.

    Lighting
    Lighting is an area where we can make quick, simple cuts in energy consumption and greenhouse gas emissions. More efficient lights like compact fluorescent lamps are already available on the market and are an easy, cleaner alternative to the traditional incandescent globe.

    The Rudd Labor Government and Lighting Council Australia have joined forces to fast track the phase out of inefficient light bulbs in Australia, bringing forward an import ban to November this year. The 12-month acceleration of the four-year phase out, beginning with the introduction of a ban on imported incandescent lamps from this year, will result in earlier cuts to greenhouse emissions of more than four million tonnes per year.

    Retailers will then have a further 12 months to sell existing supplies before any sort of retail ban comes into effect.

  • Ferguson on Lateline discusses resource breaks

    Minister, welcome to Lateline Business.

    MARTIN FERGUSON, MINISTER FOR RESOURCES: Good evening and thank you, Ali.

    ALI MOORE: You’ve today raised the issue of tax barriers to large downstream gas processing plants in Australia. Do you believe tax concessions would really make the difference to investment in those sorts of projects?

    MARTIN FERGUSON: Well, in the tough competitive world at the moment, to actually attract investment, we’ve got to seriously look at the necessary investment regime to actually get further downstream processing in the oil and gas industry in Australia, take frontier exploration and development – it is deep sea, it is highly expensive. Other countries have got similar incentives in place. We can not allow that investment to escape, because it’s not only about our exports it’s also about our domestic energy security.

    ALI MOORE: At the same time, though, the three projects that you mentioned today: Georgian, Brown and Sunrise, which in your words are struggling to get off the ground. When those in the industry talk about those three projects, they don’t talk about tax concessions, they talk about access to getting the right geographical location for their plant: access to resources, infrastructure, the sheer logistics of the problem. Tax concessions would be nice, but there are really far bigger issues, aren’t there?

    MARTIN FERGUSON: There are a range of issues. Obviously, access to infrastructure and all those associated issues are exceptionally important, but I can assure you that they are actually talking about potential incentives. And it’s no different to what we did just over 24 years ago with respect to the North West Shelf when it was a sunrise industry and they had very good assistance from the governments, successive governments over a period of two decades. We have got that as a now a mature, successful, profitable outcome. We’ve got to look to the future. I don’t accept two major LNG projects over 20 years as good enough. We’ve got to go out of our way, because it’s about bringing on potentially successful investments in what is a major industry. We want to continue to be a major oil and gas hub. It’s no longer just the West Coast. We’ve also got significant coal seam methane opportunities in Queensland which are attracting a lot of international attention at the moment.

    ALI MOORE: Indeed they are. Are they the sorts of projects that you’d be looking to target for tax concessions?

    MARTIN FERGUSON: Well, what we’re doing through the Henry Tax Review and it arises from the budget process is to actually have a look at the current system and see whether or not alternative methods of encouraging investment are required. There’s no pre-determined outcome. I will continue to engage with industry in association with the Treasurer to make sure that we as a nation not only attract investment that we in Asia are the key to resource security for other developing countries such as China and also mature companies such as Japan, whilst at the same time securing adequate energy domestically, which is very important given the interruption of supply and gas at the moment in Western Australia because of an unfortunate accident.

    ALI MOORE: But Minister, can we wait for the Ken Henry review? Because of course, these tax concession on big projects are going to be part of the review. But, that’s going to take at least 18 months, possibly even years. The lead times for these projects are huge and decisions surely need to be made more urgently?

    MARTIN FERGUSON: Well, the lead time is exceptionally long, but these companies are actually working in terms of potential project development at the moment. They are raising issues with me and my department and no doubt with the Treasurer.

    ALI MOORE: But if you’re gonna wait for the Henry review, you can’t answer them now, can you?

    MARTIN FERGUSON: No, no, the Henry Review is an ongoing process as the Prime Minister and Treasurer have said. Let’s also be clear. You’ve finally got a Government that’s actually prepared to do the serious work. Companies wanted this done over the last decade and the previous Government neglected yet again, what is very important to actually secure energy futures for Australia. It’s about domestic and export opportunities – we can do both. And finally, they’re saying to me, “At least we’ve got a Government that is prepared to sit down, talk through the issues and seriously debate what is potentially necessary with no guaranteed outcomes, actually have a debate about what might help.”

    ALI MOORE: Well, of course, you mentioned earlier the tax break for the North West Shelf project which of course was axed in the Budget, saving some $2.5 billion. Are you looking to hand all of that $2.5 billion back to a new generation of projects?

    MARTIN FERGUSON: The Government’s actually looking to see through proper consultation what is potentially appropriate. That’s about detailed work, not only in my department, but also my department in association with other departments such as Treasury and the involvement of the Minister for Finance and the Treasurer.

    ALI MOORE: Well, Minister, you’d be aware of the comments made today by Marius Kloppers the head of BHP Billiton. He’s made it clear that in his words, “if the objective is to encourage private sector investment infrastructure, overly regulated infrastructure or a hovering threat of regulated mandated access to existing infrastructure, is clearly not the way to go.” He’s obviously referring to his dispute regarding rail access in the Pilbara. Are you going to provide both BHP and Rio with some relief on that front?

    MARTIN FERGUSON: I understand the issues raised by Marius. They have attracted my interest for some considerable period, both in Government and in Opposition. There is clearly a question of a balance between competition and also, a logistic regime which is probably most – one of the efficient in the world, our iron ore provinces in WA, both Rio Tinto and BHP. That is a matter for ongoing consideration, not only by myself, but a range of other Ministers such as the Treasurer.

    ALI MOORE: Well, BHP for one, wants the trade practices Act modified to protect them against third party access. Will you rule that out?

    MARTIN FERGUSON: Marius’ views are well known to Government and they will be considered in a proper way, the same way in which the views of Rio Tinto and FMG. It’s about getting the balance right which secures investment, whilst also enabling others to increase their export opportunities.

    ALI MOORE: But what’s the time frame for this? Because this case is already about to go to appeal to the High Court, it’s also before the Australian Competition Tribunal. It’s been going for years?

    MARTIN FERGUSON: That’s an ongoing process, both from a legal point of view and from a regulatory point of view and it is a matter that will be appropriately considered by Government in the course of the normal appropriate timetable.

    ALI MOORE: And what would that be?

    MARTIN FERGUSON: Well, obviously there are a range of issues from legal consideration in the High Court and also applications by FMG. They’ll be considered, as is required by ministers, in accordance with the regulatory timetables.

    ALI MOORE: Well, Minister, of course, you are also Minister for Tourism and the latest figures show the number of overseas visitors to Australia has slowed to a halt. What can you do?

    MARTIN FERGUSON: Well, there is, in terms of our tourism industry, a very rough period ahead and I’m not going to hide from that fact. We have got to manage not only a strong dollar, but perhaps an oil crisis. And we are seeing a major rationalisation of the airline industry, not only domestic, internationally. We are going to do what we can in association with the private sector and State and Territory Governments to put together a strategy, and I have announced that commitment about supply side issues, whilst also reshaping our international travelling – international advertising campaign.

    ALI MOORE: Well, the Australian Export – Tourism Export Council says hundreds of small businesses face failure. The piece de resistance was a decision in the last Budget to raise the departure tax and other taxes and charges. They want direct financial assistance and they point out you’ve still got $200 million in the kitty from the so-called “over-collect” from the Ansett levy?

    MARTIN FERGUSON: I appreciate the concerns in industry at the moment.

    ALI MOORE: But are you going to give them any relief on taxes and charges?

    MARTIN FERGUSON: I will engage, not only with ATECH, but also the other major tourism operators in the industry. It’s more than a increase in the passenger movement charge. This is clearly a problem because of the strength of the Australian dollar and a major oil crisis. They are the crux of the problems confronting Australia at the moment, and in terms of actually assisting small and medium sized businesses, there are a range of issues including supply of labour, question of improving infrastructure and also, trying to get Australians to actually have a holiday. It is …

    ALI MOORE: But do you rule out direct financial assistance? Is that a “no” to direct financial assistance?

    MARTIN FERGUSON: There is no way that you throw money at a serious problem. You’ve got to sit down in a proper way and consider how we go forward. I am not going to make decisions on the run because I know this is a far more complex problem than increasing the passenger movement charge and so do the great majority of people in the industry.

    ALI MOORE: Martin Ferguson, many thanks for talking to us.

    MARTIN FERGUSON: Thanks very much, Ali.

  • Britain prepares for food crisis

    If the trucks stopped moving, we’d start to worry and we’d head out to the shops, stocking up our larders. By the end of Day One, if there was still no petrol, the shelves would be looking pretty thin. Imagine, then, Day Two: your fourth, fifth and sixth meal. We’d be in a panic. Day three: still no petrol.

    What then? With hunger pangs kicking in, and no notion of how long it might take for the supermarkets to restock, how long before those who hadn’t stocked up began stealing from their neighbours? Or looting what they could get their hands on?

    There might be 11 million gardeners in Britain, but your delicious summer peas won’t go far when your kids are hungry and the baked beans have run out.

    It was Lord Cameron’s estimation that it would take just nine meals – three full days without food on supermarket shelves – before law and order started to break down, and British streets descended into chaos.

    A far-fetched warning for a First World nation like Britain? Hardly. Because that’s exactly what happened in the U.S. in the aftermath of Hurricane Katrina. People looted in order to feed themselves and their families.

    If a similar tragedy was to befall Britain, we are fooling ourselves if we imagine we would not witness similar scenes of crime and disorder.

    Well, today Britain is facing a very real crisis. Granted, it is not the threat of a sudden, terrifying phenomenon such as the hurricane that struck New Orleans. But in its capacity to cause widespread hardship and deprivation nationwide, it is every bit as daunting.

    Oil prices are spiralling – $120 a barrel this week, up 23 per cent since the start of the year – and the cost is being felt not only by drivers but by each and every one of us who has seen our food bills soaring.

    This week, the British Retail Consortium revealed that food price inflation had risen to 6 per cent – the highest figure since comparable records began – and up from 4.7 per cent in April and 4.1 per cent in March.

    At its most basic, the reasons for this food inflation are twofold: increasing demand (particularly in the emerging economies of India and China) and spiralling production costs.

    The former had been predicted for years, but the latter is more unexpected.

    Conventional wisdom had it that in an age of mechanisation, the cost of producing the food that we eat would decrease as technology found new ways of improving yields and minimising labour costs. But there was a problem that hadn’t been factored in. Production methods are now such that 95 per cent of all the food we eat in the world today is oil-dependent.

     

    The ‘black gold’ is embedded in our complex global food systems, in its fertilisers, the mechanisation necessary for its production, its transportation and its packaging.

    For example, to farm a single cow and deliver it to market requires the equivalent of six barrels of oil – enough to drive a car from New York to LA.

    Unbelievable? One analysis of the fodder pellets which are fed to the vast majority of beef cows to supplement their grazing found that they were made up of ingredients that had originated in six different countries. Think of the fuel required to transport that lot around the world.

    Now factor in the the diesel used by the farm vehicles, the carbon footprint of chemical fertilisers used by most nonorganic beef farms and the energy required to transport a cow to the abattoir and process it. The total oil requirement soon adds up.

    And so as oil prices have risen, so too has the cost of food – and I’m afraid it’s only set to get worse. The age of cheap food is at an end – and it will impact not only on our supermarket bills, but on the whole economy.

    Fifty years ago, food represented around 30 per cent of the average household budget, whereas nowadays it is nearer to 9 per cent.

    In other words, cheap food has not only helped keep inflation down, it also allowed the postwar consumer boom to flourish.

    With our most basic and necessary commodity – the food on our plates – costing proportionally less every decade, we had plenty of free capital to spend on luxuries: flat-screen TVs; the holidays abroad; the home improvements and extensions that so many of us have acquired.

    That’s all set to change in a major way. A new era of austerity is approaching, and we are illpreparedfor its scale and effect. As a farmer myself, who runs a smallholding in Somerset, I was one of the first to detect the winds of change, as the prices for my animal feed rose.

    This time last year, it cost me around £7.50 a month to feed one of my pigs. Today, as wheat prices nudge upwards towards £180 a ton, that figure is closer to £15 a month.

    Over the past year, wheat prices have doubled, leading not only to increases in the price of bread, but also to demonstrations by pig farmers like me who are going out of business just as fast as you can fry your bacon.

    And while wheat farmers might be having a brief moment of glory in the sunshine of rising prices as the world competes for rapidly decreasing supplies, the crisis is hitting home in ways that I certainly never expected to see in my lifetime.

    In a report published on Thursday, 18 charities found that many disabled people and poorer pensioners are having to go short of food in order to pay for home care or simple things such as transport to their local day care centre.

    Sue Bott, director of the National Centre for Independent Living, said: ‘The shocking reality is that people are being forced to choose between eating properly and using vital care services.’ So much for our civilised society.

    It’s not just a matter of cost, either, but of real shortages. In the U.S., supplies of rice are so low that retail giant WalMart has been rationing the amount any one customer can buy.

    Is that a prospect that now lies ahead of us – a life of rationing similar to the one my parents lived in the years immediately following the war, when we eked out tiny rations of orange juice, and a banana was an almost unheard of treat?

    If so, how will a nation that has grown accustomed to having what it wants, when it wants, cope? We are no more used to real deprivation than we are to the pandemic diseases that claimed so many British lives a century or so ago.

    Yet the truly shocking fact is that the Government has made no plans at all to prepare for this possibility. Indeed, it has utterly failed to address the vital issues surrounding our food supplies and security.

    For years, experts who warned that the combined impact of climate change and oil depletion would converge and plunge food supplies into crisis have been ignored.

    John Krebs, former chair of the Food Standards Authority (FSA), told me recently that not only was the issue not even considered, it was laughed at when anyone dared suggest that a country so apparently bountiful as ours could one day find itself facing a food shortage. But Britain, as an island nation, is particularly vulnerable. We have not been self-sufficient in food since the late 18th century, but the situation is rapidly worsening.

    In 1995, 27 per cent of UK food was imported. By 2006 it was 37 per cent. The situation is obviously more critical in cities: London imports more than 80 per cent and a food shortage would hit the capital the hardest.

    The situation is worsened, of course, by the fact that we are having to compete for supplies on the global market with many more nations than ever before.

    For centuries, the typical Chinese diet consisted of rice and vegetables, but as the Chinese pour into the newly emerging cities, so their diets are changing. In 1962, the average Chinese ate just 4kg of meat per year: by 2005 that figure was 60kg and rising.

    The result has placed huge pressure not only on prices, but on natural resources required to cope with this increased demand.

    It is not simply that we do not have enough land to grow the grain to feed the animals which in turn feed us. In the past two decades, pressure on our natural resources has increased to a level which many experts fear has become unsustainable.

    For example, in the U.S., the use of hydrocarbon pesticides has increased 33 times as farmers sought to increase production and yet, as soil structures weaken due to over-use and mono-crop cultivation, more crops are being lost to pests every year.

    The world has a finite supply of fresh water too, yet 70 per cent of all freshwater is used for agriculture, often horribly wastefully.

    For example, it takes four litres of water to grow a single Kenyan green bean stem which we in Britain import by the ton – and this is from an officially ‘ water-stressed’ country. And that’s before we factor in climate change, which many believe will render great swathes of land infertile.

    Certainly, intensive farming methods are only adding to the problem: according to the UN, animal farming now accounts for a fifth of global greenhouse gas emissions, due to forest clearances and the methane emitted by cattle.

    The net result is a looming crisis of which soaring oil prices could simply be the starting gun.

    In this regard, the dominance of the supermarkets in British food retailing contributes massively to our vulnerability. Rising energy prices have an immediate impact on many of the food giants’ common practices.

    Their reliance on diesel trucks for ‘Just in time delivery’ and ‘ warehousing on wheels’; their endless plastic packaging and their transportation of processed foods and raw materials around the world means that our supermarkets have been hit doubly hard by the high oil price.

    (How much longer, I wonder, will the seafood business Young’s of Scotland find it economic to fly prawns to Thailand to be cleaned and de-shelled, before flying them back to Scotland for packaging)?

    During the fuel protests of September 2000, we caught a glimpse of how even the supply of basic foodstuffs are dependent on oil: Justin King, the CEO of Sainsbury, warned Blair that we would be ‘out of food’ within ‘days not weeks’ if the protests continued.

    Today, we stand on the brink of a longer-term problem. In the words of Tim Lang, Professor of Food Policy at City University, London: ‘We are sleep-walking into a crisis.’

    Yet even now, the Government has not woken up to the immediacy of the problem. Indeed, it doesn’t even have a coherent means of taking control of the situation. Food, and its related issues, currently straddles no fewer than 19 different ministries.

    When I questioned Joan Ruddock about whether the Government would change its policy about allowing pig farmers to feed their animals swill made from left-over food scraps (a practice banned after the food-and-mouth outbreak) she replied that she couldn’t answer the question because it fell under the jurisdiction of a different department.

    This is madness. Food, along with shelter and safety, is one of our most basic needs. Professor Lang believes that nothing short of a radical change in our diets – away from meat and towards vegetables and grains – will solve the problem long term.

    But in the meantime, alarm bells should be going off all over Westminster about the scale and impact of the impending food crisis.

    Suddenly, that warning of being ‘nine meals from anarchy’ no longer seems such a distant or improbable threat.

  • Can you reverse the Chinese curse?

    Apparently no Chinese ever uttered the curse, “May you live in interesting times.” Certainly, I have been cursed by descendants of the Central Kingdom, but mostly using English swear words involving money, or their daughters. Perhaps I misunderstood, I now have daughters of my own.

    Regardless, we do live in interesting times: Water, grain, fish and energy are in short supply. The American empire declines along with its dollar. Interesting, indeed.

    The media reinforces, every day, China’s role.

    Amazon rainforest is cut down to grow soyabeans to feed pigs and cows destined for Chinese tables. The Kimberley is developed to exploit natural gas and iron ore for “the Far East”.

    Given that the average Chinese earns less than one tenth the average Australian wage and consumes one tenth the resources, it seems churlish to deny them the opportunity to eat meat more than once a week, or to make a decent living. Chinese factories make the solar panels, shoes and gadgets that we want but can’t be bothered making.

    Adidas, alone, has 700 factories in Shanghai to supply its global market. Wage rises and new regulations have driven the company to try and move offshore. Unfortunately, no other country can cost effectively absorb 700 sporting goods factories.

    Prices of the three stripe running shoe will rise as a result.

    The theory that Wall St traders, Madison Avenue marketing gurus and Rodeo Drive entertainment moguls can control the hearts, minds and hip pockets of the world’s consumers while the Chinese do the dirty work for next to nothing has come crashing into conflict with reality. Chinese banks now sit on cash reserves of $US1.3 trillion. Acts of Congress preventing the Chinese from purchasing American companies only postpone the inevitable.

    Australian’s are insulated from these global machinations primarily because we happily sell our significant iron, aluminium, coal and natural gas reserves to the highest bidder. We’ve sold our biscuit manufacturers, dairy producers, mining and energy companies to foreign interests. We have slavishly followed the logic of level playing fields and free trade agreements in exchange for a cosy relationship with whatever empire holds sway. We switched allegiance from the Brits to the Yanks last century, and now mandarin Kev is taking Keating’s admonition that we are part of Asia to its logical conclusion.

    As Sidney Kidman said when he opposed the purchase of large chunks of Australia by the British Vestey Brothers in the 1880s, the danger is that we lose control of the nation.

    The answer is to buy Australian. It is an effort that many people think Quixotic, meaning foolish in the face of insurmountable odds. I interviewed Dick Smith on The Generator in March. He told me that his Buy Australian project, Dick Smith Foods, has been a commercial failure. Most of his suppliers have sold to international interests.

    On the back of increasing oil prices, all goods will become more expensive. The cheapest goods will be those produced locally. If we knock down our factories, though, and ship the equipment to China, as we have done with our dairy processors, shoe manufacturers and other regional industry, we will have to go barefoot, or buy imported shoes at the going, inflated, price.

    It may be interesting to indulge ourselves in stores stocked with goods from around the world but the relative dullness of local produce is far less dangerous.
    Tellingly, the third line of the apocryphal curse is, “May you get what you want.”

  • NSW oil rig proposed

    The listed company told the Australian Stock Exchange on Friday: “MEC was reviewing new data from an airborne survey conducted east of Newcastle which detected evidence of petroleum seeps on the sea surface.”

    Responding to the newspaper report, Greens MP Lee Rhiannon said companies exploring for oil off the NSW coast could face lawsuits because of mounting evidence that such operations harm whales, and the potential for an oil spill could wreak untold harm on the tourism and fishing industries.

    “There is no guaranteed benefit for the people of NSW from coastal oil and gas exploration and there is a real chance such activities would cause harm and stress to migrating whales,” Ms Rhiannon said in a statement.

    “If seismic testing is used to explore for oil, the shock waves could distress whales migrating along Australia’s east coast.”

    She noted indigenous people in Alaska and conservation groups filed a lawsuit last month against Shell Oil and British Petroleum to stop exploration planned for the seas above the Arctic Circle where bowhead whales migrate.

    “This problem and the associated potential for oil spills demonstrate that proposed oil exploration off the NSW coast should be scrapped before it starts,” Ms Rhiannon said.

    Furthermore, the exploration off the NSW coast would not reduce petrol prices or secure oil supplies as “offshore oil fields take at least five years to develop so such reserves would have minimal impact on the peak oil phenomenon”.

    The MEC report estimates undersea reserves of up to 1 billion barrels of oil and enough gas to meet Sydney’s needs for a decade. It is seeking shareholder approval to restructure its oil and gas assets to improve access to capital for exploration.

    A joint contract led by MEC and Bounty Oil is expected to be executed this year and the project has applied for an extension of a licence to explore the site while awaiting the arrival of the drilling rig to Australia, which is expected by May next year, the newspaper reports.

    A spokesman for NSW Premier Morris Iemma confirmed to the newspaper the application had been received, and MEC has told shareholders it expects approval to be granted.

    Drilling in NSW will send petrol prices down: Opposition

    If the venture is successful the public will benefit from a drop in petrol prices, NSW Opposition Leader Barry O’Farrell said.

    The promise of oil would be welcomed by the public, Mr O’Farrell said.

    “The beneficiaries are the public,” he told reporters in Sydney.

    “As is evident by the increasing price of oil, we’re reliant on international oil cartels and the prices are currently only going in one direction.

    “If we’re talking about oil rigs 20 kilometres off the coast, if that offers the hope of increased oil [and] reduced petrol prices, I think the community will welcome it.

    “We see both State and Federal governments talking long and hard about working families but doing nothing practically to assist the cost increases they’re facing.”

    Mr O’Farrell said that the environmental impact would be minimised by safeguards such as those in place for other mining projects.