12.03.08 BUDGET UPDATE: 2p duty rise delayed until October

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The Chancellor Alastair Darling has backed down on plans to increase fuel duty by 2p in his budget speech. The 2p increase has been delayed until October 2008, but not scrapped entirely. It is unclear what will happen to the 2p rise that was already planned for October.

Delaying the 2p rise in duty is simply not good enough. With each week setting new price records, and motorists and businesses finding it increasingly difficult to afford fuel, it is imperative that Mr Darling doesn't just delay the 2p rise, but scraps it altogether. Motorists have had to suffer a 20% rise in the cost of fuel in the last year alone due to spiraling oil prices, but the treasury has in fact benefited from this because VAT is added on top as a percentage of the cost and duty.”

The Chancellor could easily afford to scrap the rise completely – estimates suggest that the rise would have earned the government around £1 billion, but he's already earned an extra, unbudgeted £1.2 billion just because of the rise in oil prices in the last year.

Delaying the rise rather than scrapping it is an insult to the intelligence of the British public. Mr Darling is hoping that we'll forget about the rise, so he can bring it in again later when there won't be as much of a public outcry.

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As expected - an absolutely scandalous situation to take more money off the British public in which we all know is 'Rip Off Britain' !

Posted by Keith Connolly, 12th March 2008 2:22pm

Time to emmigrate! This country has nothing to offer any more!

Posted by Philip D'ambrogio, 12th March 2008 2:34pm

It's a pity that we can't organise a week-long fuel boycott. Think of it; every driver in the country refusing to buy fuel from a petrol station charging over £1 per litre...reckon that'd make any difference?

Probably not...

Posted by Jaimie Tillotson, 12th March 2008 2:39pm

Clearly we are been taken for a ride. Use now pay later where have I heard that before.

Mr Darling remove the benefit you give the greenies to stay at home and protest for a living and scrap the 2p rise all together. Don't be shy darling

Posted by J. Sprarrow, 12th March 2008 2:51pm

Perhaps as consumers we have more power over fuel prices than we think. This email has been doing the rounds for several days now. The idea is excellent but will require the whole of society working together plus backing from the business community/ freight transport associations if it is to have the impact we all want. Please read on and circulate as widely as possible. The fight back starts here!

We are hitting £ 1.23 a litre in some areas now, soon we will be faced with paying £1 .30 a ltr. Philip Hollsworth offered this good idea: This makes MUCH MORE SENSE than the 'don't buy petrol on a certain day
campaign that was going around last April or May! The oil companies just laughed at that because they knew we wouldn't continue to hurt ourselves by refusing to buy petrol. It was more of an inconvenience to us than it was a problem for them. BUT, whoever thought of this idea has come up with a plan that can really work.

Please read it and join in!

Now that the oil companies and the OPEC nations have conditioned us to think that the cost of a litre is CHEAP, we need to take aggressive action to teach them that BUYERS control the market place not sellers. With the price of petrol going up more each day, we consumers need to take action.The only way we are going to see the price of petrol come down is if we hit someone in the pocket by not purchasing their Petrol! And we can do that WITHOUT hurting ourselves. Here's the idea: For the rest of this year DON'T purchase ANY petrol from the two biggest oil companies (which now are one), ESSO and BP. If they are not selling any petrol, they will be inclined to reduce their prices. If they reduce their prices, the other companies will have to follow suit. But to have an impact we need to reach literally millions of Esso and BP petrol buyers. It's really simple to do!! Now, don't wimp out at this point... keep reading and I'll explain how simple it is to reach millions of people!! I am sending this note to a lot of people. If each of you send i t to at least ten more (30 x 10 = 300)... and those 300 send it to at least ten more (300 x 10 = 3,000) ... and so on, by the time the message reaches the sixth generation of people, we will have r eached over THREE MILLION consumers! If those three million get excited and pass this on to ten friends each, then 30 million people will have been contacted! If it goes one level further, you guessed it...


THREE HUNDRED MILLION PEOPLE!!!

Again, all you have to do is send this to 10 people. That's all. (And not buy at ESSO/BP.) How long would all that take? If each of us sends this email out to ten more people within one day of receipt, all 300 MILLION
people could conceivably be contacted within the next 8days!!! Acting together we can make a difference . If this makes sense to you, please pass this message on.

PLEASE HOLD OUT UNTIL THEY LOWER THEIR PRICES TO THE 69p a LITRE RANGE

It's easy to make this happen. Just forward this email, and buy your fuel at Shell, Asda, Tesco, Sainsbury's, Morrisons Jet etc. i.e . boycott BP and Esso

Posted by Glenn Watson, 12th March 2008 2:51pm

Who do you think Asda, Tesco, Sainsbury's, etc. get their petrol from?

Exactly. BP and Esso.

So how hard do you think they'll be laughing if we all did this?

Posted by Brian Polkinghorne, 12th March 2008 3:04pm

post 5 not that b****y email again, it wont work how ever it is dressed up

Posted by Kevin Dell, 12th March 2008 3:04pm

I'm on a year long fuel boycott, at least. I've bought 1000 litres of filtered veg oil for £400 delivered, and I'm running it just fine in my 405 TD. The only duty the Chancellor got from me was the VAT on the delivery - precisely £7.70.

Posted by Simon Lord, 12th March 2008 3:16pm

Sheer, unadulterated, abject, incompetence.

This current government is so totally out of touch with reality it is almost unbelievable.

Posted by Fred Flintstone, 12th March 2008 3:35pm

MPs unconcerned by price rises as most claim there fuel on expenses which in the long and short we get hit twice.......thanks labour !!!!!!!!!!!

any chance of someone telling the petrol stations the hike has been temp suspended, as most i know or pass have all increased the price.......

do we vote. do we have a choice, do we get our say ? NO, britian now has toe the line or leave policy which many people are doing, not for a better life always but for a cheaper living..........soon taxes and fees will overtake wages etc causing more unemployment............

Posted by Jason Best, 12th March 2008 3:40pm

tax us for what we enjoy !! thats all this goverment ever do.... what can we do about it ?..... nothing... the only way we could is if every one said NO !

but it would never happen....


so i guess we have to put up with it or leave....

Posted by Jo, 12th March 2008 4:55pm

This comment has been removed as it was found to be in breach of our Blog Policies.

Once again its absolute outrage. So now there is a further duty rise on alcohol, cigarettes and later in the year fuel AGAIN. That ALASTAIR DARLING has proven himself today that he is a COMPLETE PRAT. British public DO NOT VOTE LABOUR or they will continue to TAX us in any way they can, like this. There is no thought on what makes them come up with these ridiculous decisions on how to overcome the problems in our world today "just put prices up and make us suffer". Thanks government, bunch of B*****DS.

Posted by Edward Hunter, 12th March 2008 5:33pm

This comment has been removed as it was found to be in breach of our Blog Policies.

The thing is there's more,trouble on the horizon,recession,if 2p tax was added to fuel,it could put people out of work.
With the people already going to lose jobs in 08/09 recession,its going to add up to less tax being collected,but more money being paid out.
Today is just a balancing act.

Posted by Broke, 12th March 2008 6:10pm

Usual hitting oil companies in the pocket nonsense again. The only way to affect change is to force government, the oil companies didn't get to where they are now by being bullied. STRIKE, and GO SLOWS are the only way. The last time the haulage companies did it the dim witted general public went up in arms at the lack of bread on the shelves and congestion on the motorways. The public need to be educated that it is the only way to influence policy.

Block the ports, block the airports, Block the motorways, and if near to London block access to parliament. For weeks if it needs to be. Affect those who can actually cap what the oil companies charge and can reduce their own duty.

The public must get behind the haulage companies for it to work.

Posted by Joel Rush, 12th March 2008 6:12pm

This government has to go..........the fuel price increases are just part of the problem that is hitting this country.

I wish that there was something that we could all do, but what? The government know that we will just put up with it as most people just go along and fill their tanks and don't even look at the price. We always look for the cheapest in the area which is usually Asda, Tesco or Sainsburys. My husband needs his car for work so if he can't drive then he can't work. Our son has already moved to Canada and we are seriously considering this. We don't want to keep subsidising the "fat cats" and their pensions thank you. Looks like we are off........................what else is there?

If anyone has any idea what we should do, as a country, and what will make a difference then surely we should be looking at these ideas seriously? We are getting penalised with petrol increases, higher utility bills, more expensive food shopping items, more council tax so where will it all end? With a country full of the "fat cats" and cheap immigrant workforces so that those in charge become richer. Most of the residents of the United Kingdom will probably end up moving to other countries. Is that what they want do you think?????

Posted by Debbie M, 12th March 2008 6:54pm

Sorry, Peakoil, your considered, informative and thought provoking piece is just too far above the heads of most of the contributors to this blog. Never under estimate the ability of petrolheads to ignore reasoned arguments and facts so that they can continue their headlong and lemming like rush to oblivion. I just can't wait to se their faces when they arrive at their Armageddon.

Posted by Steve Ottevanger, 12th March 2008 7:12pm

My work involves a lot of driving, to & from universities & clubs, carrying essential equiptment which it would be impossible to take on a bus or train..especially as i work until 3-4 am by which time these services have stopped. So a vehicle is absolutely essential for me to do my job. In my opinion there has to be a viable alternative provided before one can "encourage" people to stop using their vehicles so much. Or at the very least a system where it is possible to get a tax reduction or some kind of exemption certificate for people who simply have no alternative but to drive such as myself. It simply is not fair to constantly penalise us.
I dont mind getting a bus into town etc & i can fully understand the reasons for penalising people for needless journeys but....
STOP PENALISING US FOR DOING OUR WORK UNTIL YOU PROVIDE A SYSTEM WHICH CATERS FOR DIFFERING NEEDS PROPERLY!! & THAT GOES FOR TRUCKERS TOO!
Surely it would be simple to introduce a system where you had to apply for a tax reduction if your needs for a vehicle were essential for your livelyhood?

Posted by Ian Clarke, 12th March 2008 7:39pm

Extend airports more flying,how green is that brown.

Posted by Broke, 12th March 2008 8:00pm

I have just been to fill up with LPG at Morrissons and they have increased their LPG price from 49.9 ppl to 52.9 ppl !!!! this is scandalous in light of the Chancellors decision to postpone the duty rise, and is hitting me as a green driver harder than anyone ! it represents a 6% increase overnight !! if that was Petrol it would mean it rose by 6 ppl (proportionally ) !!!! In a little over 18 months I have seen LPG rise by 13 pence per litre (was 39.9 ppl in Autumn 2006) That's nearly a 33% rise. If petrol had risen proportionally it would be over £1.50 per litre by now !!

Posted by Sean O'sullivan, 12th March 2008 8:14pm

Enjoy it while you can !

Posted by Happy, 12th March 2008 8:18pm

This comment has been removed as it was found to be in breach of our Blog Policies.

This comment has been removed as it was found to be in breach of our Blog Policies.

This comment has been removed as it was found to be in breach of our Blog Policies.

This comment has been removed as it was found to be in breach of our Blog Policies.

Get Rid of these stupid comments

Posted by Charles, 12th March 2008 11:19pm

I've taken to riding Shergar everywhere, much cheaper than using the Delorean!

Posted by Lord Lucan, 13th March 2008 3:08am

Peak Oil, that text is becoming rather boring.

A question for you then. Once you get your way and no body uses oil in the UK then what?

Posted by Boo To Peak Oil, 13th March 2008 9:12am

Peakoil (post #12) is correct, the Oil Age is coming to a rapid end. US Congressman Roscoe Bartlett thinks Hubbert's speech in 1956 will be seen as the most important in the whole of the 20th century.

Unfortunately very few people can see this and our so called leaders are stuck in groupthink just tinkering at the edges. The consequences are going to be horrendous there won't be any more driving full stop regardless of whether you are disabled, a pensioner, going to work.... Just think for a few minutes about how much we depend on oil,
agriculture - tractors, fertilisers and weedkillers then getting the food to the people.
mining - mostly done using oil fuelled machinery.
transport - nearly all using oil.
plastics & petrochemicals.
In the future there won't be any social security, unemployment "pay", disability motability allowances, holiday flights.... because we won't be able to afford them.

And by the way gas is also rapidly depleting so we can't just switch. So stop whining about the cost, very soon it will be seen as cheap just like a barrel of oil was only $50 a year ago now its $110, soon be $200.

Posted by Tonyw, 13th March 2008 9:21am

its an outrage

Posted by Martin Churchill, 13th March 2008 10:22am

Mr Tonyw

I am afraid you and Peak Oil are missing the bigger picture here. Everyone knows Oil is become less available. But once you make it a source of income it is going to hurt everyone involved.

Imagine this, government makes 55 billion a year and the oil finishes tomorrow, how is the government going to replace that income? I will bet you my pension what ever the alternative energy source to replace fossil fuels will be tax heavily in order to keep the income coming.

I have faith in mankind in developing an alternative energy source before the depletion of oil. There is unfair to try and make money off people to fund miss managements.

Posted by Boo To Peak Oil, 13th March 2008 10:46am

Perhaps we are worrying about the wrong immediate threat, this is an excerpt from a powerswitch conversation started today:

"I know we all sit and gasp at the latest WTI crude prices as it breaks records, but have we got our eye on the wrong commodity???

Wheat has risen 187% in the last year, compared with a measly 88% rise in crude prices!!!!!

Wheat has gone up 15% in the last week compared with oils modest 4%.

Isn't the food issue quickly becoming more important that the oil issue? I know that they are closely related, but I now feel that actually food shortages are more likely than fuel shortages. It's not rioting over petrol we've seen in the hardest hit places, but rioting over cooking oil.

Food I think is probably going to be the big issue that people notice, and it will all be blamed on the rising demand from china and india, where the real reasons are far more complex and involve biofuel demand, soil errosion, disease, polution of land (via pesticides), dependency on fertilizer, inability to return nutrients to the land (humanure and composting), monocrop growths, lack of bio-diversity, GM crop causing long term disease in soils, rising population, increasing costs forced by oil prices, and of course investors leaping on the commodities band wagon.

I suppose this will lead to the population reduction that is inevitable given that we're running out of our black gold inheritance. - Sad but true. We're going to see an awful lot of starvation over the next decades."

Just to comfort us coddled Brits, when he says starvation he doesn't mean us, however much we whine we will still be able to afford to buy when other countries can't.

Posted by Greg Brown, 13th March 2008 11:11am

Yes food is a problem, but because it is a basic human right there is always going legislation's to insure that food will not run out.

Us Brits have a nasty habit of taking a problem and blowing it up out of proportion. Look at the so called storm that hit. Over the weekend shops where full of people buying stuff to be ready for a 5 year war.

Coming back to the topic of 2p rise delayed, it should simply be scraped. There are professionals working for the government they can come up with alternatives in order for them to save money from reducing the fuel duty.

Posted by Boo To Peak Oil, 13th March 2008 11:27am

A few years ago the government threatened to increase the fuel duty to £1.00.
The nation was in up roar and fuel protests took place.
The price of fuel cleared the £1.00 mark a few months ago and nobody seemed to be too bothered except a handfull of protesters including me.

Has this country just rolled over and played dead.
Because in doing so they have given the government cart blanc to dictate what the hell they like.

We should have kept on complaining about this rediculous fuel price rise because now it seems like too little too late.
The government want us all to stop smoking for the good of our health so they have to get the tax from some where else due to decreased tax income on smoking.

A friend of mine has just had a holiday to Fuerta Ventura, a little Island which has all it's goods and fuel brought in by ship. (They have no natural commodities)

Supprise supprise their fuel cost per litre after all the import taxes is less than half the price of ours per litre.
The only differance is they don't have a greedy government.

Posted by Martin Chalmers, 13th March 2008 11:37am

we need to team up with the tankers to go on a fuel protests like they did in sept 1999

Posted by Martin Churchill, 13th March 2008 12:21pm

Has anyone pointed out to Gordon Brown that the UK are still members of the EU? We have accepted all the price rises to "bring us into line with the rest of the member countries", but our fuel costs are the highest in the EU. Why is nothing being done to reduce our fuel prices to bring us into line with Europe?

Posted by Maggie Naish, 13th March 2008 12:37pm

The biggest question is where is all this money from all these taxes going, we've paid off our debt from the second world war, we have less people on benefits per population than ever before and more people working and paying taxes. As stated more money is generated from motoring, Fuel Duty, VAT on Fuel, VAT on your car purchase, Vehicle Excise Duty (Road Tax) as well as tyres and parts and servicing.

When will this ever end, this has to be the most un-popular government ever and they still don't get the message. Let's hope that they never become disabled or live in a remote area.

Posted by Stephen Lee, 13th March 2008 2:25pm

I just think that the UK government is a disgrace to the nation they are in charged of.

It is only common sense that you spend the money where you took it. But I honestly cannot see our public transport system have imporved over the past 8 years since I move to this country. While working in Coventry, I see the same piece of road being digged up and re-pathed 3 times in a matter of ....4 months. Is this how one of the "most powerful" country on this little planet do things??

While living in Hong Kong, our underground was always full...but at least, it has air conditioning, fast and reliable. 3 million out of the 7 million population use the underground to go to work or school. take away the pensioners who stay at home and babys. that's just about everybody. Why would they do that....because, there is train evrey 3 mins. and they are so reliable that only one delay over the past 4 years.

In UK, (the country that brings underground to HK) I cannot even walk into a tube. it is old and broken, London Underground is world famous!! If I'm a tourist, I'll be thinking Iraq is a better place to live than this!!

The Hong Kong Minitor of Transport did say this about 10 years ago when annoucing the plan to double the number of underground stations: "Public transport is like the circulatory system of a human body. unless you keep it flowing, the person is dead."

On the note of taxes, I agree that certain taxes should be raised, but not fuel tax. while the arguement is increasing fuel tax to stop people using the road.....WHY LET THEM BUY CARS IN THE FIRST PLACE!!! In Hong Kong, all cars are taxed 150% so a £20k car in Uk will cost around £45k. That will stop people buying cars and that will force people use public transport and that will reduce congestion and that will reduce pollution. 1 TAX THAT SOLVE IT ALL!! I was surprised by how many student doing their A-Level can afford their own car!! In Hong Kong, I own 3 computer shops and I still only managed to get a 8 years old Civic.

To solve a problem, cure the root cause. Increase car registration tax and bring the petrol down to £70p. MOST IMPORTANT THOUGH! Sort out your public transport!

Posted by Denzel, 13th March 2008 3:14pm

To be fair...yes, we hate expensive fuel but in reality there's absolutely nothing we can do about it.

The price of fuel is demand inelastic, which means the quantity demanded (by people) is relatively unaffected by a change in price. This means, if the price goes up, yes some people will stop buying but it isn't going to have a massive effect on how much people demand, because fuel is considered by many to be a necessity. Say, if we took an elastic product such as computers made by Dell. If these were really expensive, people would switch to other suppliers and if the prices of Dell computers fell, people would increase their demand and buy more.

Also, the reason that fuel is so high at the moment is because of OPEC as im sure you are aware. They have limited supply, which simply means the price rises. Supply does not affect demand. Supply affects price, which affects demand and as I've said, the price of petrol is demand inelastic which means the demand is unaltered.

At the end of the day, the government needs tax revenue, and by taxing an inelastic product (also alcohol and tobbacco) means they can get it.

Seriously, no-one is going to affect OPECs decisions about how much oil they produce which affects the price we pay. The market is dominated by a few large firms who pretty much supply the whole market anyway.

Posted by James Kelsall, 13th March 2008 3:46pm

I agree, we should all get together and do something a little stronger to exercise our views the unbudgeted amount is only one item just think how many other items there are that we are not privy to - and why should Whitehall not have to have receipts for anything below £25 I believe when I have to have a receipt for everything in my business if I want to a) put it through my business and b) claim the Vat back again one rule for the general public and businesses alike and one rule a completely different on for Whitehall. I guess none of them pay for their petrol anyhow so they wouldnt know how much it hurts !!!!!

denise evans Hadzor Worcestershire

Posted by Denise Evans, 13th March 2008 3:59pm

37, Stephen Lee: In response to your query:

===

Britain could be in bigger trouble than the US

British house prices and consumer debt levels are much higher relative to incomes — and have grown faster — than in other leading economies, including the US. Since these levels have now proved unsustainable in America, it seems very likely, therefore, that Britain in the year ahead will suffer a housing and credit correction at least as severe as the one now happening in the US.

Link: tinyurl.com/yvtk8u

===

Government deficits are also high

The borrowing increase leaves the UK with one of the biggest budget deficits in the Western world, at 2.9pc of gross domestic product in 2008/09. The only major country with a bigger shortfall is the US, however, this is after taking into account the $168bn of tax cuts recently announced George Bush.

Link: tinyurl.com/2egsfc

===

Additionally, gold has just passed $1000 for the first time in history, the Asian markets have lost around 5% overnight (not a crash by a long shot, but not good) and oil has rocketed from $100/bbl. to around $112/bbl. in the space of a week. The US is pretty much screwed given the $200bn injection of liquidity by the central banks into the global economy this week has failed to change much of anything. With $500 trillion of derivatives at stake, the UK is going to enjoy depression along with everyone else, if not outright economic breakdown (think 1929, but bigger).

On top of that, China won't be propping the global economy up and keeping us carrying on with business as usual: tinyurl.com/36jjfp

===

- Trends in Nasdaq in '99 - '00 and Shanghai Composite '07 - '08 mirror each other (SC down to @4100 from @6000!)
- Chinese inflation up to 9% from around 1% in '06. Food inflation @ one-third of total, which is a huge percentage and not likely to fall given the current problems we face globally (the harsh Chinese winter being part of the problem).
- China may have to slow down production to clear the air for Summer Olympics.
- Alluded to above: some were counting on China to keep the global economy going despite US slowdown, but that is becoming doubtful. (Big psychological effect, apparently.)

===

And then there's the global diesel shortage which is linked to refinery utilisation being poor and heavier, sour oil being the only abundant crude left with all the light sweet taken up elsewhere. These energy issues feed into food inflation and drive up the cost of living in general. The age of cheap motoring and food, no, cheap living, is coming to a close.

Posted by Kellerman, 13th March 2008 6:16pm

I was thinking the other day how good life was before Blaire got in. Yes there was a scandal with some Tory MPs but they're all at it now. There was no war, no tick lists, no problems getting kids into schools that were nearby. We didn't have nearly a million immigrants living here either. Petrol wasn't £1.10 a gallon. Life seemed simpler.

Am I kidding myself and looking back with rose-coloured specs? Would it happened 'whatever' as they say?

What do others thinkg?

Posted by Anita Richards, 13th March 2008 6:49pm

Charles no 26,what comments,the trees,woodland being destoyed in south america,food shortages around the world,jobs that are starting to dissapear
due to a recession the govenment is trying to cover up,birth control,l these
topics may be stupid to you but affects millions of people round the world
MORON

Posted by Peakfood,trees,jobs,sex, 13th March 2008 6:53pm

Surely now this Government have now committed political suicide,
What do they have to do and how arrogant do they have to become before we use the might of the electorate and banish them from power once and for all.
Roll on the next fuel protest, but lets do it properly this time.

Posted by Pete Shaw, 13th March 2008 9:14pm

41, Kellerman

I do have to admire your tenacity, I come to this blog every now and again to get a reality check, reality being how this lot are going to react when TSHTF. I don't know where you get the patience from. I mean, it's not as if every single warning sign isn't available everywhere, every day - do they really think life is going to carry on as it has been?
What is it with the knee jerk thing, where is there a sign of even the most cursory research?
Anyway, you should probably keep it up even if just as a sporting diversion.

Posted by Greg Brown, 13th March 2008 9:46pm

Is not just this government but the whole political mass that would not listen or care for the tax increase. Motorists are the easy targets .they see us like cows that will give them the milk needed to accomplish their targets neglecting the quality of life they may cause with their actions to the population.As far as i am concerned, they and their families, dont have to think much about the living.paying such a big amount of money for fuel it is at least disgusting.of course. I dont believe they will change their minds but im convinced that the petrol prices will rise even more than it is now.the final receiver of that mistaken political game are the motorists ,the families ,the industry, the entire population.Im not sure what could be the answer or reaction in to that situation but certainly i would be very pleased if we could use air to move our cars and we didnt have to pay that ridiculous amount of tax for fuel knowing that a good amount of it is being spent to keep military troops in iraq.

Posted by Alexander K, 13th March 2008 9:57pm



PEAK OIL - DON'T TAKE MY WORD FOR IT.


"There is little doubt that crude oil is our world's 'master domino': when it thrives, all other dominoes flourish, and when it tumbles, it does topple all of the others too." - Dr. Ali Bakhtiari (Former Director at the National Iranian Oil Co. of Tehran).

"Previous energy transitions were gradual and evolutionary. Oil peaking will be abrupt and revolutionary." - U.S. Department of Energy (March 2005 Report).

"The basic, fundamental building block of the world economy is in danger of becoming extremely scarce." - Richard Cheney (Vice President of the United States).

"The doubling of oil prices in the past couple of years is not an anomaly, but a picture of the future. Peak oil is at hand." - US Army Corps Of Engineers (September 2005 Report).

"The peak oil scenarios portrayed are absolutely not alarmist; they're realistic." - Robert Gates (former Director of the CIA).

"What people need to hear loud and clear is that we're running out of energy in America." - George W. Bush (President, Unites States).

"I continue to believe that the American consumer is the weak link in the global daisy chain. The combination of rising long-term interest rates and higher oil prices puts an unmistakable squeeze on discretionary income .... the last thing overly indebted, savings-short US consumers need." - Stephen Roach (Managing Director and Chief Economist at Morgan Stanley).

"The end of the fossil hydrocarbons scenario is not a doom and gloom picture painted by pessimistic end of the world prophets, but a view of scarcity in the coming years and decades that must be taken seriously." - Deutsche Bank (Energy Prospects After The Petroleum Age - 2004 Report).


ARE RESOURCE WARS COMING?


"So where is this oil going to come from? The Middle East is where the prize ultimately lies." - Richard Cheney (1999 Speech To The Institute Of Petroleum).

"In World War II, the United States consumed about a gallon of fuel per soldier per day. In the 1990-91 Persian Gulf War, about 4 gallons of fuel per soldier was consumed per day. In 2006, the US operations in Iraq and Afghanistan burned about 16 gallons of fuel per soldier on average per day." - U.S. Department Of Defence (2007 Report).

"We can do a better job in conservation, but we darn sure have to do a better job of finding more supply." - George W. Bush (President, United States Of America).

"The great nations just aren't throwing enough money at the problem. Instead, they are preparing to fight for the last drops of oil." - London Times (2005).

"Energy consumption is indispensable to our standard of living and a necessity for the Army to carry out its mission. However, current trends are not sustainable. The impact of excessive, unsustainable energy consumption may undermine the very culture and activities it supports." - U.S. Army Corps Of Engineers (September 2005 Report).

"Oil is unique because it is so strategic in nature. We are not talking about soapflakes or leisurewear ... the Gulf War was a reflection of that reality." - Richard Cheney (Vice President of the United States).

"I fear we're going to be at war for decades, not years; Ultimately we will win it, but one major component of that war is oil." - James Woolsey (Former Director of the CIA).

"The amount of energy is finite, up to now in relation to demand and competition for access to energy can become the life and death for many societies." - Henry Kissinger (Financial Times Article - Kissinger Warns Of Energy Conflict).

"Given the thermodynamic deficiencies of the alternatives to oil, the complexity of a large scale switch to these new sources of energy, and the wrenching economic and social effects of a declining energy supply, you can see why our leaders view force as the only viable way to deal with the coming crisis." - Matt Savinar (Founder of the 'LifeAfterTheOilCrash' web site)


WHAT ARE THE EXPERTS SAYING?


"The consequences (if true) would be unimaginable. Permanent fuel shortages would tip the world into a generations-long economic depression. Millions would lose their jobs as industry implodes. Farm tractors would be idled for lack of fuel, triggering massive famines. Energy wars would flare. And car-less suburbanites would trudge to their nearest big-box stores--not to buy Chinese-made clothing transported cheaply across the globe, but to scavenge glass and copper wire from abandoned buildings." - Chicago Tribune (Pulitzer Prize Winning Journalist Paul Salopek).

"I continue to believe that the American consumer is the weak link in the global daisy chain. The combination of rising long-term interest rates and higher oil prices puts an unmistakable squeeze on discretionary income ... the last thing overly indebted, savings-short US consumers need." - Stephen Roach (Managing Director and Chief Economist at Morgan Stanley).

"The world has never faced a problem like peak oil. Without massive mitigation more than a decade before the fact, the problem will be pervasive and will not be temporary." - U.S. Department of Energy (March 2005 Report).

"If the peak comes and we can't get our act together fast enough to make up for it, you will end up with people all over the world burning coal as fast as they can just for the space heating and primitive industry. Such a large scale switch to coal could produce global warming so severe that life on planet Earth would cease to exist." - Dr. David Goodstein (Professor of Physics at Caltech).

"The American people are going to pay a terrible price for not having had an energy strategy." - Robert Gates (Former Director of the CIA).

"Globalisation makes it impossible for modern societies to collapse in isolation. Any society in turmoil today, no matter how remote, can cause problems for prosperous societies on other continents." - Jared Diamond (Prize winning author of 'Guns, Germs and Steel').

"The medical profession must eventually be forced to consider whether in an age of fuel scarcity it will be possible to maintain at their present level hospital procedures consuming large quantities of energy." - J.A. Lorraine (Author of 'Medicine and the Energy Crisis').

"Petroleum impacts medical care at every level. Advanced technology is worthless without the energy to run it." - Burt Kline (Former Director of the Division of Energy Policy of the U.S. Health Resources Administration).

"The United States must start now to respond to peaking global oil production to offset adverse economic and national security impacts." - U.S. Department of Energy (March 2004).

"Nevertheless, even with greater efficiency, the total amount of energy used by 2030 will have increased by almost two-thirds." - Rex Tillerson (President of ExxonMobil).

"I fear we're going to be at war for decades, not years... Ultimately we will win it, but one major component of that war is oil". - James Woolsey (Former Director of the CIA).


SCIENCE CAN SAVE US - RIGHT?


"The notion that massive 'free lunches' in energy efficiency will result from tweaking the market with new regulations and standards, he said, is misguided". - Dr. Robert Stavins (Environmental Economist - Harvard University).

"In the United States, annual federal spending for all energy research and development - not just the research aimed at climate-friendly technologies - is less than half what it was a quarter-century ago. It has sunk to $3 billion a year in 2006, down from $7.7 billion in 1979." - New York Times (October 2006).

"The laws of physics mean the hydrogen economy will always be an energy sink. No matter how much money is spent you will always use more energy to create, store, and transport hydrogen than you will ever get out of it." - Alice Friedemann (Author of 'The Hydrogen Economy - Energy and Economic Black Hole').

"It would take every single one of California's 13,000 wind turbines operating at 100% capacity (they usually operate at about 30%) all at the same time to generate as much electricity as a single 555-megawatt natural gas fired power plant." - Paul Driessen (Canada Free Press).

"The basic problem of hydrogen fuel cells is that the second law of thermodynamics dictates that we will always have to expend more energy deriving the hydrogen than we will receive from the usage of that hydrogen. The common misconception is that hydrogen fuel cells are an alternative energy source when they are not." - Michael Ruppert (Founder and Editor of 'From The Wilderness').

"I think what people don't understand about hydrogen is that it is not a source of energy. You have to use energy to make hydrogen and it takes the equivalent of six gallons of gasoline to make enough hydrogen to replace one gallon of gasoline." - Dr. David Goodstein (Professor of Physics at Caltech).

"Nuclear is an alternative, but remember you're not going to have any nuclear cars and nuclear airplanes. Nuclear is not a substitute for oil." - Dr. David Goodstein (Professor of Physics at Caltech).

"There is no battery pack which can effectively move heavy farm machinery over miles of farm fields, and no electric battery system seems even remotely able to propel a Boeing 747 for 14 hours nonstop at 600 miles an hour." - Dr. Walter Youngquist (Geologist).

"Relying on corn for our future energy needs would devastate the nation's food production. It takes 11 acres to grow enough corn to fuel one automobile with ethanol for 10,000 miles, or about a year's driving. That's the amount of land needed to feed seven persons for the same period of time. And if we decided to power all of our automobiles with ethanol, we would need to cover 97 percent of our land with corn. That's a lot of corn." - Dr. David Pimental (Chairman - U.S. Department of Energy - Commitee on Ethanol).


HOW OIL MUCH IS LEFT?


"The basic, fundamental building block of the world economy is in danger of becoming extremely scarce". - Richard Cheney (Vice President of the Unites States).

"The world has now reached the point of Peak Oil. After nearly 150 years of uninterrupted supply growth crude oil production has peaked and has entered its irreversible decline." - Dr. Ali Bakhtiari (Former Director at the National Iranian Oil Co. of Tehran).

"All the easy oil and gas in the world has pretty much been found. Now comes the harder work in finding and producing oil from more challenging environments and work areas." - William Cummings (ExxonMobil Spokesman in Angola).

The most knowledgeable experts revised their predictions and now concur that 2005 is apt to be the year of all-time global peak production." - James Howard Kunstler (Author of 'The Long Emergency').

"...there will be an average of two-percent annual growth in global oil demand over the years ahead, along with, conservatively, a three-percent natural decline in production from existing reserves. That means by 2010 we will need on the order of an additional 50 million barrels a day." - Richard Cheney (Vice President of the Unites States).

"The doubling of oil prices in the past couple of years is not an anomaly, but a picture of the future. Peak oil is at hand." - U.S. Army Corps of Engineers (September 2005 Report).

"Nevertheless, even with greater efficiency, the total amount of energy used by 2030 will have increased by almost two-thirds." - Rex Tillerson (President of ExxonMobil).


PREPARE FOR A LIFE OF AUSTERITY.


Find local employment. Reduce your debts. Reduce your fuel consumption. Grow your own vegetables or buy from local suppliers. Exercise regularly. Insulate your home. Help your family, friends and colleagues to understand the implications of Peak Oil.

Posted by Peakoil, 14th March 2008 9:12am

message to our Darling:

I'm disabled (hopefully temporarily), my wife travels to work each day
44 miles round trip earning £148 take home pay, along with all the other taxes forced upon us how long do you think we can survive ??

Does enough people in the country agree that we're being ripped off
'Tax wise' ?, not just fuel tax, if so does anyone know how we can do something about it ? the French love 'em or hate 'em, would they protest ?????

COME ON LETS JOIN HANDS AND DO SOMETHING,

Posted by Martin Mcnally, 14th March 2008 9:19am

Moderator: How about giving the Peakoil theory its own blog page, so that anyone who feels inclined to comment on peakoils point of view can do so and then remove any similar and repetitive subsequent posts in other subjects so that we don't have to scan through the same old lengthy post every time we're having a discussion about something else.

Then he can't complain he's being stiffled or censored, maintains the right to free speech, but isn't getting on anyones nerves with his obsessive, unneeded and unwanted posting habits.

Posted by Morrisey, 14th March 2008 10:51am



What a great idea. Thanks.

Posted by Peakoil, 14th March 2008 11:26am

Morrisey

I second that. Then we can actually talk about the topic at hand and maybe even come up with workable solutions.

Posted by Boo To Peak Oil, 14th March 2008 11:43am

This comment has been removed as it was found to be in breach of our Blog Policies.

A god way of showing how we all feel about the price of fuel; is by posting a car key { or any sparew key } to no 10. ith a short but simple message of how we all feel. Just think of how much of a pain it would for the pm if 10,000 were posted over the easter bank holiday's !!!!

Not somthing that he could ignor easily i'd say

Posted by Phill, 14th March 2008 2:21pm

Morrisey

"I second that. Then we can actually talk about the topic at hand and maybe even come up with workable solutions."

Workable solutions? You also need a separate thread for magicians then.

You aren't willing to discuss the Powerdown scenario, there isn't another solution. Why not spend time investigating rather than knee jerking? You clearly don't trust TPTB (The Powers That Be) to arrange a pi* up in a brewery, nor do I, you have to start looking outside the current political process for solutions.
Carry on doing the same thing and get the same result, or change the way you do things. No politician or party other than the BNP have even the the slightest grip on what's going on, and that is very unfortunate for all of us (No, I am not a BNP fan - at all).

Posted by Greg Brown, 14th March 2008 3:58pm

I would recommend reading the likes of Limits of Growth: The 30-Year Update. It gives a very sobering view of the possible futures should we carry on regardless or decide to powerdown sensibly.

Ultimately, this line of life is not sustainable in the long run, least, not for all of us.

Posted by Kellerman, 14th March 2008 4:15pm

To Morrisey who are you seconding 49 or 53

I'm serious about sending key's to no 10 but will need other people to back me up. As for knee jerk reactions what is the power down scenario ?
I want to bring about polictical pressure on our "great" leader in order to bring the petrol tax down to off set the current increases in petrol.

Posted by Phill, 14th March 2008 4:25pm

Greg

No, you're right, I'm not willing to discuss the 'powerdown scenario' on this thread.

Should a topic be created for said issue, if I have a relevant comment to make, I shall do it there.

Posted by Morrisey, 14th March 2008 4:27pm



What is the 'powerdown scenario'?

I would suggest reading the following book:

PowerDown: Options And Actions For A Post-Carbon World by Richard Heinberg.

Amazon review:

If the US continues with current policies, the next decades will be marked by war, economic collapse, and environmental catastrophe. Resource depletion and population pressures are about to catch up with us, and no one is prepared. The political élites, especially in the US, are incapable of dealing with the situation, and have in mind a punishing game of "Last One Standing."

The alternative is "Powerdown," a strategy that will require tremendous effort and economic sacrifice in order to reduce per-capita resource usage in wealthy countries, develop alternative energy sources, distribute resources more equitably, and reduce the human population humanely but systematically over time. While civil society organizations push for a mild version of this, the vast majority of the world's people are in the dark, not understanding the challenges ahead, nor the options realistically available.

Powerdown speaks frankly to these dilemmas. Avoiding cynicism and despair, it begins with an overview of the likely impacts of oil and natural gas depletion and then outlines four options for industrial societies during the next decades:

* Last One Standing: the path of competition for remaining resources;
* Powerdown: the path of cooperation, conservation, and sharing;
* Waiting for a Magic Elixir: wishful thinking, false hopes, and denial;
* Building Lifeboats: the path of community solidarity and preservation.

Finally, the book explores how three important groups within global society - the power élites, the opposition to the élites (the antiwar and anti-globalization movements, et al: the "Other Superpower"), and ordinary people - are likely to respond to these four options. Timely, accessible and eloquent, Powerdown is crucial reading for our times.

Posted by Peakoil, 14th March 2008 4:33pm

Mr Kellerman, peak oil, Greg Brown and other green peace activists. I proposed that we scrap the whole 2p duty rise, and at the very worst keep the prices where they are but ideally reduce them.

Where is the money coming from? Try using peace negotiators instead of soldiers its cheaper bring back our boys and girls and save money. Work on miss managements and unecessary spending.

What about the environment? The first step is to accept the fact that the motorist is not the main culprit here. Make sure all the countries move in line with improvements for the environment. Note not just the UK. Invest in research into finding a sustainable replacement for fosil fuels. We still have time to find it without the fuel price rises.

Posted by Boo To Peak Oil, 14th March 2008 4:35pm

RE 59

Please don't lump me in with Green Peace Activists. I am not one nor likely to be one. A far more holistic approach is required than Green Peace propose which encompasses a far wider view than they take, for one thing, like most Greenies they do not take on board the population issue as being the underlying problem, and if they do they don't like to talk about it.
You are right, the motorist is not the main culprit, the culprit all of us and our civilization wide addiction to oil, motoring is just one part of it, as an example it took as much energy to manufacture this laptop I am using as it it would to manufacture a car, we are all equally liable in so many ways we don't even give a second thought to, and as so many have pointed out in this and other threads, motorists are easy targets just like smokers and drinkers. You might as well go round with a target painted on your chest.
You are responsibl;e for the bloody mess we are headed for. So are all your friends, relatives and everyone you know. And that applies to me too.
There are those on this blog who keep asking the same question, what to do?
I suggest a start would be to read the book Powerdown without simply dismissing it out of hand. Quit tv for a couple of nights, read it, then make a comment about how you then feel about peak oil and Poewerdown- I can pretty much guarantee you will come back to this blog and read through it with a sense of horror.
As if my opinion is going to make any difference, this Government don't even deserve the tip of my boot let alone 2p extra on juice, they are lying, hypocritical and very frightened little men.

Posted by Greg Brown, 14th March 2008 5:30pm

"HQ to Agent 3. If he mentions a word about Peak Oil, you know what to do. The chemical will act quickly, so it will look like a heart attack."

Posted by Greg Brown, 14th March 2008 5:54pm

Wow. You could have fooled me. Sorry mr Greg Brown.

Well I still believe mankind can find an alternative before the oil reserves dry up. I will try to read as advised by Lord Brown and keep an open mind.

In the mean while I challenge you to come up with more suggestions for an economical solution to the fuel price hikes.

Posted by Boo To Peak Oil, 14th March 2008 6:07pm

I've got one for ya.
Peacfull protest/people power !!
check no 53

Posted by Phill, 14th March 2008 6:46pm

Any body interested in peacfull protest shoul post a car key or spare key to no 10 telling them how unhappy we are with the current rate of tax on petrol

Posted by Phill, 14th March 2008 6:50pm

62, Boo To Peak Oil: Drive less. How about that? Buy less junk too. Way too many people are spending their incomes as soon as they come in. I guess saving up for a rainy day is something you have to teach people today.

Drive slower too, and get a smaller car. I'm sick of people overtaking at the best part of 100 MPH in a 60 zone in a car that is easily 2 tonnes. I shed no tears for those fools when they complain about fuel prices, in fact, it makes me wish the petro-collapse would come sooner.

Good luck with finding an alternative to oil. There ain't one. Unless you happen to know where several million years worth of sunlight stored in easy to access reservoirs underground can be found right now.

By all means carry on with this hilarious tirade against Brown and taxation. Let me know when you all achieve something, because while I'm planning for a day when shortages are an ever day occurrence, I'll be wondering how whining on an Internet blog at total strangers in Westminster has helped you.

Disabled? Don't earn a lot of money? Can't afford to keep more than one car? Trucking agency going under? Geology doesn't frankly care. It's a harsh life, but maybe if we had the sense not to rely on dino-goop, we'd not be here now wondering what the future will entail.

I think Greek tragedy is the term to apply here.

Posted by Kellerman, 14th March 2008 7:32pm

I don't think that it is an 'hilarious tirade against Brown and taxation' your assumption that everyone who's complained about the rise in fuel tax drives a gas guzzler is laughable.

The cost of fuel hits everyone, even the people who ride bicycles as the rise in prices at the shops indicate.

Ridiculous comments like these get us nowhere, political pressure needs to be applied to force this government to change, wether that change be sustainable alternative fuels.

Bottom line peakoil and co ....if a fella can afford to buy a gas guzzler to start with the tax isn't going to stop him, but it will raise the price of your carrots at tesco.

I have never seen such a fear mongering, hysterical abuse of real facts regarding dwindling oil reserves, since tony blair took us into a fruitless war with Iraq, as these put forward by peakoil and his cronies, in future gentlemen, before you commit text to blog, make sure you've thought things through properly or you're as guilty for the tradgedy to come as those you're so bitterly opposed to.

Fools!

Posted by Morrisey, 14th March 2008 8:03pm

Single mum two kids,loved by labour on benefits,runs arond in ford focus diesel,on a 04 plate.
So if you cant afford to change your car give up your job,claim to have no money bingo its like earning £35,000 pa.
I sick of paying for this when our OAP's need help.

Posted by Broke, 14th March 2008 8:09pm

66, Morrisey: You're not getting me. The rantings here are funny in a depressing way, because everyone here seems to think that this is all the fault of government. No one once considers that our rampant consumption has anything to do with it, because growth is good, as they always tell us (the rich people in suits who we often condemn but similarly follow in goals).


Since I get tired of repeating myself because people don't seem to actually read or learn anything here, I immortalised a few key explanations in a post over at the Transaction 2007 forum. You can find it here: tinyurl.com/3azm5l

A couple of the figures aren't loading right now due to a server error that should be fixed soon.

Incidentally, I advise watching the Tonight programme right now. It will tell you a lot of what I, and others, have already proposed for cutting fuel bills.

But please don't delude yourself into thinking we have substitutes for oil. The best we can hope for is more bio-fuels, and I address this particular error in strategy in the link above.

Posted by Kellerman, 14th March 2008 8:15pm

I think you're missing your own point Kellerman.

If the government aren't reponsible, who the hell is?, thats why they're elected, if every single person who reads this blog stopped driving cars, right now, it wouldn't affect the prices in the shops or the global reserves one bit.

No one believes that oil isn't on the way out, but when a person isn't even allowed to mount a solar panel on his roof or a wind turbine on his garage because it 'isn't suitable for the enviroment' You, ranting on and on at angry tax payers, who contrary to you belief, already know about oil reserves is a huge waste of time and diverting the attention from where it should be.

This government has totally lost it's way, it's time to make a difference, stop listening to peak oil, wether he understands it or not, he and his message are diversionary and just how the government like it.

You can either mount a challenge to this governments policy or sit back and do nothing like the good Sheeple you are, follow the flock and let what peakoil predicts happen.

Posted by Morrisey, 14th March 2008 8:34pm

Peak oil,it will be hard,but when its gone mankind will find a way,but trees,
food and a bit of the other we need.

Posted by Peakfood,trees,,sex, 14th March 2008 9:05pm

Familys in some citys and towns,in the UK,have grandfathers,sons and grandsons that have never worked,why?

Posted by Broke, 14th March 2008 9:08pm

71 - Familys in some citys and towns,in the UK,have grandfathers,sons and grandsons that have never worked,why?

Cos we lovs bein on holiday mon. Ha Ha

70 - Wot r u on abat?

Posted by Freaky Friday, 14th March 2008 9:19pm

69, Morrisey: False dichotomy. It's not either or, the government and our consumption are to blame. And who do you think elected those clowns in... thrice?

Posted by Kellerman, 14th March 2008 9:36pm

WE MUST ALL GO SLOW TOGETHER. THERE ARE THOSE OF US WITH COMITMENTS AND COULD NOT AFFORD TO SAY RIGHT LETS STOP EVERYTHING.BUT THE ONES WHO CAN AFFORD THE TIME TO DO IT SHOULD. HUNDREDS OF DRIVERS JUST BLOCK ALL MAIN ROADS INTO AND OUT OF THE MAJOR CITIES FOR WHAT EVER TIME IT TAKES. STICK TOGETHER WITH THE HAULAGE COMPANIES JOIN IN ITS OUR RIGHT TO FIGHT. LIKE WE STUCK TOGETHER IN THE WAR. COME ON ALL YOU PEOPLE WHO CHAT BETWEEN YOURSELVES AND THEN DO NOTHING.
LETS PUT THE GREAT BACK IN BRITAIN. I HEAR YOU SAY WELL/ WHO IS GOING TO ORGANISE THIS? YES WHO ?

Posted by Tonythe Blindman, 14th March 2008 9:58pm
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