AA wakes up to Peak Oil

Written By: - Date published: 8:29 am, December 6th, 2012 - 49 comments
Categories: peak oil, transport - Tags:

“It can only get worse from here.” – that’s the Automobile Association’s numbers man on petrol prices. It’s quite a revelation because, until now, the AA has been firmly part of the dinosaur establishment that has been insisting petrol prices will ‘soon’ fall to ‘normal’. In fact petrol prices have been rising at 8% a year since 1999, 3 times inflation in the rest of the economy, and there’s no sign that the price rises – driven by peaking supply – will stop.

There’s a rule of thumb, developed by looking at all the recessions of the Oil Age, that when oil costs exceed 4.5%-5% of the economy, you get a recession. In economic terms, the cost of burning oil exceeds the value gained on the marginal units of consumption – so, you stop doing those units of consumption, and the economy shrinks until the price falls under the danger zone. A look at our oil imports shows we’re currently spending 4% of GDP on oil imports vs 1.2% in 1999.

On the current trends of GDP growth and oil price growth, before 2020 it’ll permanently cost over 5% of GDP to import as much oil as we do now. We, and the world, will have to trim a lot of demand – ie have a series of serious recessions and ‘failed recoveries’ (sound familiar?) to get that down. But the cycle will just continue of oil price rises to recession-inducing levels, followed by recessions that temporarily relieve the pressure by destroying demand.

Mark Stockdale also gets the logical response to this – stop building sprawl: “In the past, people have thought nothing to live an hour away from work. Is that really practical?” Someone tell National, because they plan to put all of Auckland’s additional population in the middle of nowhere in sprawling suburbs where their families’ budgets will be extraordinarily sensitive to rising petrol prices.

We urgently need to reduce our nation’s dependence on oil (I nearly wrote ‘imported oil’ but, in fact, we’re always going to import all the oil we use for transport because the refinery is set up for sour, heavy crudes, not the light ones found here, and, besides we would pay the international price on domestic oil anyway). Imports have been flat for about 7 years. The party that can come up with policies to reduce oil consumption by a serious amount will be putting money into the NZ economy rather than seeing it flow offshore, will be insulating us against future price shocks, and will be helping save the climate.

Any takers?

49 comments on “AA wakes up to Peak Oil ”

  1. Colonial Viper 1

    Spot on mate. Interesting thing about peak oil is that it causes such gradually increasing economic pain over such a long time that even the most resistant have to eventually come about.

    Also you implicitly identified one of the key characteristics of peak oil – it may not come with much of a price signal. We may run out of petrol literally at a price of $3/L…its just that the multiple recessions/depressions caused will have effectively reduced people’s spending power by half or three quarters so that the price is effectively $6/L or $9/L in today’s dollars.

    The total % of your income you have to spend on fuel is basically a key measure to look at from now on – both from a whole-country perspective and individually.

  2. CodyHM 2

    I think one of the biggest downfalls of fossil fuels, such as oil (apart from the environmental factor) is the cold hard fact that these resources are finite.

    One day, near or far, they are going to be in short supply, and then run out. And they’ll only get more expensive leading up to that.

  3. Wow if the AA is acknowledging peak oil we are in deep, deep trouble …

    • karol 3.1

      Yes, but only a first step.  The AA man still can bring himself to talk about public transport as an alternative to cars.

      • weka 3.1.1

        Nor actually mention the term ‘peak oil’.
         
        And his advice to buy a more efficient car is problematic. Building new cars and shipping them to NZ uses lots of oil. They’re still not making the connection beyond transport fuels.

        • Peter 3.1.1.1

          Yep. Cars have got way more efficient in energy use since the 1970s, yet we have far more of them. Efficiency improvements tend to result in a lower per unit cost, which means more units, and therefore, more energy used, not less. That’s the Jevon’s Paradox, and it applies all over the show. Another classic is irrigation – more efficient methods of water application to land, but more hectares irrigated, and less in streams.

          There is a Jevons Alternative though – if the constraint on energy supplies is quantity, and not price (as we are fast seeing now), and you work to cut the system costs of energy (you can’t cut production costs), then you can make the economics work in favour of conservation. But that will take effort, and probably some regulation.

          • weka 3.1.1.1.1

            Hi Peter, can you please give an example of the Jevons Alternative?

            • Ian Brett Cooper 3.1.1.1.1.1

              The most obvious example is the gas shortages of the 1970s, which was a quantity constraint. In the US, the government set up a system of rationing by only allowing people to fill up their tanks every other day – a managed quantity constraint. Did it work? To be honest, I don’t know. But it is an example of the Jevons Alternative.

  4. aerobubble 4

    Aviation fuel is untaxed, if true, it would explain why so many cars sound like they were propeller driven, over stimulated by the high energy aviation fuels. This loop hole means not only do engines wear out faster, roads wear away from the extreme violent engines punding vibrations into the roads, but worse, its one of those Greece size errors of judgment that by allowing individuals to avoid fair taxation only builds up extra costs, debts on the economy. Key’s government is all to keen to blame those who have little say, like the now comical routine of declaring Labour and Green potential policies effects if National lose power (like it was a pressing problem for Key) in parliament, and so avoid their obligations to nation, to government well.

    • Saccharomyces 4.1

      “Aviation fuel is untaxed, if true, it would explain why so many cars sound like they were propeller driven, over stimulated by the high energy aviation fuels. This loop hole means not only do engines wear out faster, roads wear away from the extreme violent engines punding vibrations into the roads”

      I’m a little confused by this. Do you have any idea of how difficult it is to get hold of aviation fuel? And how costly it is? I also have major issues with your quotes about engines wearing out faster etc…. PLEASE know what you are talking about before posting.

      • Mike 4.1.1

        Ummm, it’s not that difficult to get hold of jet fuel, which is essentially kerosene with additives and is actually cheaper (cost per litre landed in NZ) than regular petrol.

        • Saccharomyces 4.1.1.1

          Right, you go fill your car with Jet A1 and tell me how that’s worked out for you. The same statement applies to you too. PLEASE know what you are talking about before posting.

          • aerobubble 4.1.1.1.1

            Vibrations increase wear, its pretty simple, as people use products they wear out.

            Since you cant imagine a light plane owner seeing what happens if they put
            some of the fuel for their single seater plane in their diesal car. Since you can’t
            imagine them not filling their tank only partially, then its obvious you can’t
            imagine the more extreme combustion that results, and its excessive noise\and vibration.

            Now I get that, you lack an imagination.

            • Saccharomyces 4.1.1.1.1.1

              I repeat, please know what you are talking about before typing.

              First, light aircraft are powered (by and large) with avgas, which is a high octane GASOLINE fuel. Stick that in a diesel car and it won’t be going anywhere.

              Second, IF they were putting it in a modern petrol car the lead that’s in avgas would pretty quickly kill their O2 and air/fuel ratio sensors and block their catalyst. So again, they won’t be going anywhere.

              Third, IF they were to put it in an older car that doesn’t have an o2 sensor or catalytic convertor then it still wouldn’t create more wear as a higher octane actually DECREASES vibration, knock and preignition. You wouldn’t get any more power either. You could take advantage of these factors to create more power, but that would require major engine work to yield a relatively modest result, leaving you dependent on getting your hands on relatively hard to get avgas. If you really wanted that extra power there are many, many better/easier/more cost effective ways where you can still use petrol from a regular fuel station. I know everyone’s got a story about an old mate who chucked some avgas in a mini and the next day it beat a v8 at the lights, and these are partially true, but those engines would’ve been very highly tuned and modified (and coming off a very low base performance), and would’ve been absolute pigs to drive, and completely dependant on obtaining high octane fuel. This was before the days of EFI and turbos where now more power, and more importantly more useable and reliable power, is available far more cheaply and easily.

              Now, onto sound, first, the main component of the sound of a propellor-driven aircraft come from the propellor, not the engine.

              The sound emitted from a (petrol) car has very little to do with the combustion itself. When combustion is happening the cylinder is sealed, what you are hearing in the exhaust is the shockwave of the exhaust gases expanding into the manifold. The sound of the exhaust in two identical engines, one running avgas, one running pump gas, would be identical. Part of the sound you are hearing in some cases (especially in Hondas and other high performance naturally-aspirated engines) is intake resonance, and that’s also caused by shockwaves, in this case by air rushing into the cylnders in the intake stroke. Again, absolutely nothing to do with the fuel.

              I dont’ need an imagination in this case, the facts are freely available for anyone to research.

              I don’t think it’s me with the imagination problem here, I rather think you’ve let yours run away on you!

  5. Jim Nald - Once Was National 5

    Wow. This is significant.

    Mark Stockdale should be commended for stating this.

    What is the big secret policy plan of the current lot of Natz in government? A policy for flying pigs?

  6. Steve Wood 6

    The NZ refinery should be reconfigured to process NZ oil.
    As the depression deepens and international trade declines and trust horizons diminish, we will not have access to imported oil.

    • Peter 6.1

      The NZ refinery can process NZ oil, it’s one of the best refineries in the world. It’s just that NZ oil (i.e. light, sweet, condensate) is actually cheaper to ship it to Australia to be processed in lesser quality refineries. Instead, we can process sour grades of crude quite effectively, and that’s what we do. It’s cheaper as well.

      It’s quite likely that as Maui and Kapuni run dry, that we could reconfigure one of those pipelines running north to Auckland for oil (rather than shipping it around North Cape), run the current Marsden-Wiri pipelines backwards for a bit, and then achieve something close to a self-contained system.

      • alwyn 6.1.1

        I agree with you on paragraph 1 Peter.
        There is, however a minor problem with your paragraph 2.
        The condensate from Kapuni, and Maui are produced in conjunction with the gas they produce. If you aren’t producing any gas you won’t be producing any condensate either. (Perhaps it actually isn’t so minor).
        When the gas runs out so does the condensate.
        The gas pipelines are also, I believe, enormous for oil pipelines. There would never be the amount of condensate to fill them. The gas line from Oanui to Huntly is about three times the diameter of the Whangarei to Wiri oil line so would have, I assume and I’m not an engineer, at least nine times the capacity.

        • Peter 6.1.1.1

          Right, you are probably correct. I’m not an oil engineer, merely a simple planner, so the technicalities of engineering get me.

          Which means, that either we turn the condensate to synfuels on site in Taranaki (by firing up Motonui properly), or ship the condensate to Marsden.

          As much as I’m an advocate for energy independence for NZ (probably our most worthy policy goal right now), I can’t see this making any sense at the moment.

          A far better approach is to focus on the end use of energy, and eliminate it. This means, massively upgrading rail, and using electricity + biomass to shift things around. We’d have enough domestic fuel left over to run private cars, but even these would need a phase out.

          • alwyn 6.1.1.1.1

            Perhaps I should have put in the paragraph about the size of the pipelines.

            The critical bit was the previous one. If Kapuni and Maui run dry there won’t be any condensate to move anywhere. The field produces both condensate and gas. No gas = no condensate so if the gas runs out so does the condensate.

          • joe90 6.1.1.1.2

            by firing up Motonui properly

            Gone in the rush to make a profit.

            He recalls about seven years ago being involved in a joint venture with Macaulay Metals of Wellington, dismantling and disposing of the gas-to-gasoline plant at the Methanex New Zealand petrochemical complex at Motunui in Taranaki. Methanex had decided to scrap the plant,primarily because it had not made any synthetic petrol for years, preferring to manufacture methanol exclusively.So Molten Metals and Macaulay Metals,along with some Methanex staff,undertook the biggest scrap metal project of that time – dismantling and clearing a plant that covered an area larger than several rugby fields.

      • lostinsuburbia 6.1.2

        You would still need to transfer the oil by ship to Marsden Point.

        The Refinery to Wiri pipeline cuts down a hell of a lot of truck movements, so logistically and energy wise it would be better to keep it in use.

  7. xtasy 7

    TIME to WAKE UP NZ!

    My observation, as a person who spent a fair amount of my life in Central Europe is: NZ is “behind” progressive thinking, living, working, building and also business.

    Any person, who has ever been to Denmark, the Netherlands, Germany and other places there, would well know that many things can be done differently.

    In NZ I see a very “americanised” way of life, typical of the US in the 1960s to 1980s. Auckland and other cities are largely built for the convenience of private motor vehicles, for burning immense amounts of carbon based fuel, following the urban sprawl that is typical of US cities like Los Angeles and even San Francisco, cities in Texas, Florida and so forth.

    It is a DUMB infrastructure and economy that NZers have and cling to.

    Energy neutral housing should become the NORM or STANDARD in a country like NZ, so blessed with natural alternatives, healthy resources, climate and still plenty of space. Yet I see almost NONE of this being followed, not by this government, and in opposition only the Greens have progressive, serious thoughts spent on this.

    Alternative energy use is only so dominant in NZ, because NZ spent money decades ago on hydro dams, which was a natural and sensible way to use the force of water and rivers to generate electricity. Yet wind and solar energy is only starting to take off to very limited degrees. They have more solar panels on roofs in a not so sunny place like Germany (per capita) than in this country. That shows how “backward” NZ is. It belongs to the major per capital fossil fuel users in the world by the way, and that is NOT a compliment.

    In Copenhagen, Amsterdam, many other cities in Central Europe, including now even Paris, there is a big take up of using bicycles for transport. Many NZers frown on that transport, not wanting to get “wet” in rain or facing the “wind”. That may be understandable, but it is petty, even part of a “lazy” mentality.

    The health benefits of cycling are enormous, and diabetis, heart issues and so forth could be reduced substantially if NZers start using alternative transport like that more often, saving immense costs in the health spending.

    Even in the US alternative energy use is becoming very popular with the informed and educated, and councils there, for instance in California, encourage this.

    The AA is just starting to realise now, what experts have said for many, many years. Indeed, they are a dinosaur organisation, but they now cannot deny the realities and the truth. I welcome this contribution, as it does only serve the needed reforms we must have a.s.a.p. in the energy and housing sectors, to use more alternative measures to use energy more efficiently and wisely. Public transport improvements are totally overdue in this respect.

    For some interesting sources perhaps look at some of these links:

    http://www.theenvironmentalblog.org/bike-the-netherlands/
    http://www.theenvironmentalblog.org/2007/08/dutch-energy-neutral-homes/
    http://www.boligplus.net/
    http://news.bbc.co.uk/2/hi/europe/8224141.stm
    http://www.kk.dk/sitecore/content/subsites/cityofcopenhagen/subsitefrontpage/livingincopenhagen/cityandtraffic/cityofcyclists.aspx
    http://en.wikipedia.org/wiki/Cycling_in_Amsterdam
    http://www.scientificamerican.com/article.cfm?id=energy-efficienty-home-energy-star
    http://www.fypower.org/about/faq.html
    http://www.spiegel.de/international/business/actively-passive-the-new-wave-of-energy-efficient-homes-a-476279.html

    Now my question is: Have Labour considered making “energy neutral” homes part of the program to build a 100 k of “affordable” homes over 10 years? While Labour appears to promote public transport, where are clear, determined plans? Where are plans to change the urban development? I accept the Auckland Plan is in part ok, but I expect much, much more, also on a national scale. NZ is BEHIND and BACKWARD!

    This government does fuck all, so where is Labour’s smart plan.

    All I can say, upon what I have read, heard and observed, only the Greens come close to deliver anything serious in this area!

    • Draco T Bastard 7.1

      Now my question is: Have Labour considered making “energy neutral” homes part of the program to build a 100 k of “affordable” homes over 10 years?

      Not as far as I know. In fact, I’m pretty sure that that entire 100k houses will be the standard cheap and cold shitty houses we get in NZ because the government has always set very low minimum standards rather setting high minimum standards.

      • xtasy 7.1.1

        DTB: It confirms my worries. It is NOT encouraging!

      • Stephen 7.1.2

        That would be inconsistent with the Healthy Homes Guarantee/rental warrant of fitness policy that was announced alongside the building programme.

  8. no-one is mentioning the fact that WE own an electrified main railway line between welly and auckland that was built in response to the seventies oil crisis, but the trucking industry have successfully managed to put so much freight onto the roads. perhaps its time for the government to actually lead(fat chance with the current loosers), and force more freight back onto the rail.

    • xtasy 8.1

      paul anderson: I agree to some degree. The rail system has been totally neglected for too long by various governments.

      Also the trucking lobby is extremely strong, and they have a foot-hold in the National Party.

      It is not an easy solution though. I worked in the freight industry. Bulk goods can be transported competitively on rail, and certainly by ship also. That should be promoted.

      Yet we will always have a certain element of transport needing more individualised services. Trucking can be done better with also developing alternative fuel options for them to use. There will always need to be a front end and back end “feeder” system of transport, where you have goods collected and distributed over certain regional areas. Rail will not be able to compete with that, unless you have links into every suburb of centres.

      So the solutions must be smart and well thought through.

      As it is, NZ has HUGE potential to develop MORE EFFICIENT systems, as what we have is very backward indeed. It can be done, must be done, and the sooner the better.

      We all know, even Greens, that oil and coal will not be abolished over the coming years. The challenge is to develop systems to use those forms of energy much more efficiently, to prepare for a transition to alternative and future proof energy use. That is what is is all about.

      I resent the Nat ACT brigade always thrashing alternative energy policies by trying to imply that a change from one day to another will be impossible. They are the Neandertal mentalities at work, and I feel even Neandertal man and woman was likely more intelligent than the people running this government by the way!

  9. outofbed 9

    The Change at the AA is probably due to Julie Anne Genter of the Greens engaging with the AA

    • Jenny 9.1

      That is strange.

      Though the problem of peak oil is dire. It is not as dangerous as Climate Change.

      But if it is true, then all power to her.

      (Because the solutions to peak oil, are for the most part the same ones required to halt runaway climate change….. A depowering of the economy and the ending of our reliance on fossil fuels.)

      • Robert Atack 9.1.1

        >to halt runaway climate change<

        The phrase "runaway climate change" is used to describe a theory in which positive feedbacks result in rapid climate change.[2] It is used in the popular media and by environmentalists with reference to concerns about rapid global warming.[2][3] Some astronomers use the similar expression runaway greenhouse effect to describe a situation where the climate deviates catastrophically and permanently from the original state – as happened on Venus.

        We have tripped 8 positive feedback's, according to Guy McPherson, which is good enough for me. There is nothing we can do to halt it, we are locked into anything from +6 – +16 (or god knows) by 2100, humans start to die off at about +2, and will be gone burger by +3-4
        Peak oil will just help our departure.
        When the US grain harvest is at 1/4 – 1/3rd of the 2010 harvest (within the next 5 years) we might see a fast reduction in oil demand, as massive amounts of people start to starve.

    • Jenny 9.2

      That’s great.

      Though the problem of peak oil is dire. It is not as dangerous as Climate Change.

      But all power to her.

      (Because the solutions to peak oil, are for the most part the same ones required to halt runaway climate change….. A planned depowering of the economy and the ending of our reliance on fossil fuels.)

      • karol 9.2.1

        (Because the solutions to peak oil, are for the most part the same ones required to halt runaway climate change….. A planned depowering of the economy and the ending of our reliance on fossil fuels.)

        I’d agree with that. I don’t have a scientific background, so you won’t see me arguing on the science of climate change.  But the solutions seem necessary one way or another, so I support them, in my daily life.

        • Jenny 9.2.1.1

          Unfortunately individual efforts to cut back will never be enough. This battle needs state intervention, and on a massive scale.

          Anything less is fiddling at the edges.

          If we are to have any chance, all coal mines must be closed. And definitely no new ones should be allowed to be opened. The Green Party must stay out of any government that insists on strip mining the Denniston plateau for the coal export market. The Green Party must not be part of any government that allows deep sea oil drilling. If the Green Party concedes to these things then we are finished.

          • Robert Atack 9.2.1.1.1

            Anything less is fiddling at the edges.
            Yes you are right, that would also include a moratorium on child birth, not only are humans the biggest contributes to climate change, the unfortunate innocents (the children) are going to have to spend the rest of their lives in this shit hole we have created, what loving parent would wish this on their child … a fuck wit I guess? Or a green voter.

    • xtasy 9.3

      Julie Anne Genter is from my observation doing an EXCELLENT job!

      She looks at the details, analyses them and is well informed on what should be done.

      When it comes to “public transport”, I must say, “Kiwis”, wake up, realise you are not just your narcissistic self in the world, you are part of a COMMUNITY. The sooner you realise this and “learn to share”, the better. Driving in cars is highly “unsocial” and “isolationist”. Better wake up and face the people you live with in the same town, city and country!

      I am afraid even the “middle class” hate to come to terms. That is the main problem in NZ, too many dreaming they can continue living in isolation and achieving a life style they will never really be able to afford. Also due to wealthy migrants purchasing power, most NZers are being marginalised and will NEVER get their own homes anyway.

      Wake up, I call yet again, but ignorance, complacency and wrong drug distributions (weekly alcohol or other intake to “escape”) make my call a futile effort.

      NZ is a LOST place, for sure, full of waste and ignorance!

  10. muzza 10

    No mention of the global control over the oil price then, continued threat of war hiking transport prices up, and of course the control over the oil fields of the stolen nations. Add to that the futures markets all working to keep the prices artificially high..

  11. IS THE END NIGH?

    Motoring editor Peter King checks the oil supply — Summer 2004
    Snip
    In this country two separate groups have raised the issue. A group called Oil Crash led by Robert Atack and Kevin Moore; and the Green Party. Although they are not allied, both say that little or no new oil is being found globally, and that the oil companies have all the official agencies in their pockets and are playing fast and loose with the truth. They say oil prices can be expected to skyrocket to the point that our way of life and economy will come under sudden and catastrophic change.
    ———————————————————-
    «Odd as it may seem to some, building more roads quickly to make our fleet more efficient may be one of the best things we can do for ourselves, our economy and our planet.»

    Peter King
    Autumn 2006

    • xtasy 11.1

      Fossil fuels are here merely for transition. We will nonetheless face a total energy crisis, unless we switch to alternatives and regeneratives.

      • Jenny 11.1.1

        All that is missing is the political will.

        • Robert Atack 11.1.1.1

          If John Key woke up as Mother Teresa this morning or J H Christ, he would still not be able to reverse our situation, or even slow it down We are about 30 years behind when political will would have done something. We can’t even accept the fact we have missed the boat, let alone gear up this fucked system to catch up.
          To make the slightest dent on our collective problems would involve 80% unemployment for a start, as employment = destruction of the environment, and massive fossil fuel use. Just feeding 7 billion people will be enough to guarantee our extinction, let alone giving them all a flat screen TV and a heat pump. To maintain the statuesque is still pumping a thousand years worth of CO2 into the atmosphere, we are close to 400ppm and will not see sub 400 for at least another 1,000 years.

      • weka 11.1.2

        We will nonetheless face a total energy crisis, even if we now attempt to switch to alternatives and regeneratives.
         

        Fify.

          • weka 11.1.2.1.1

            Spamming again I see Jenny.

            • Jenny 11.1.2.1.1.1

              Just doing my little bit to shine a light on the Green Party CCI policy of self censorship around Climate Change.

              • Jenny

                By the way weka, in a previous thread when I asked you if the Greens would continue to ignore Climate Change during the next election as they had in the previous one. After quoting back to me, my original question, here, after a long winded preamble, you gave your answer stating:

                ……I just don’t think it’s the job or responsibility of the GP to do this at this point. Time for others to step up.

                weka

                In response to your answer. I asked you another, and even simpler question:

                Who?

                Jenny

                You didn’t respond. Maybe you would like to now.

                So weka, if, it is not “the job or responsibility of the Green Party to do this at this point.”

                Whose is it?

              • Good on you Jenny
                I was asking Jeanette Fitzsimons back in March 2000 if the green party was going to talk about Peak Oil .. http://oilcrash.com/articles/greed.htm ……… It never happened. And I mean in a on going truthful way.
                Now they want to promote growth and manufacturing.
                Nothing has changed really they are still focused on getting votes, and so will never come out with the truth, they do not want to frighten the horses, and lets face it ‘the people/voters’ do not want to hear the bad news/truth.
                The Green politicians don’t want to face reality, let alone the members or voters. I think the Green politicians have been responsible for the most children born to standing politicians, even their spokesperson on energy has 2 or 3, he has a massive investment in ‘the system’ hanging together.
                They ether haven’t got a clue, or are a bunch of bloody lyres. Stupid or corrupt?
                But as I proved with my 37 votes in the 2005 elections the people do not want to know.
                I’ve always thought the Greens were set up by the Labour back room boys, to suck up the far left vote, then once in government, they were to act like tickle me Elmo and just role over and keep quite about the real issues, Gay land rights for whales, free range chickens, and lipstick, come to mind.
                Promoting Kiwi Saver is their biggest act of betrayal, as Kiwi Saver is growth based, for the under 40 yo Green voter it means to get a payout from their Green party promoted saving scheme the planet has to spew out a growing amount of resources for the next 25 – 47 years.
                What can they say now? “We think the planet is truly fucked and all you people we convinced to invest in this growth based scheme are never going to see a return on your investment”, hell no, they will just maintain the lie.
                And the people will keep voting for them …………….. the bullshit just keeps going around and around.
                I kind of gave up after watching this http://www.youtube.com/watch?v=xIraCchPDhk

  12. Lloyd 12

    Just a few points.

    Fracking has increased USA gas production so that 9% more of the US electricity generation is now using natural gas than when Obama was elected and has increased US oil production to the point where the US is looking to become a net oil exporter again. My point? If the level of fracking carried out in the US is carried out in other oil producing countries “peak oil” may turn out to be “gently down-sloping plateau oil”. I think the crisis is not likely to be the oil running out but that global warming causes some of the cities using the oil to disappear under the sea….

    There is no electric powered railway from Wellington to Auckland. The low voltage Wellington system stops at Waikanae and the higher voltage electrification runs from Palmerston North to Frankton Junction. Present high voltage electrification work in Auckland is planned to get as far south as Papakura with the likelihood of extension to Pukekohe. The two gaps and the different voltages means it is presently impossible to put an electric locomotive on the front of a train at Wellington and detach it at Auckland. Hopefully a Labour policy will be completion of the main trunk electrification. Dual voltage locos are possible eg, the Eurostar under the English Channel.

    The nats opposition to the rail loop through Auckland is a most effective way of forcing Aucklanders to stay in their cars and therefore to use petrol and therefore cause New Zealand’s balance of payments get worse. I think even dyed in the wool blue voters in the suburbs now accept this. If the nats keep opposing the loop they will definitely loose votes because of this.

    Labour was never happy about alternative energy generation in the past. In the days of the NZED making power on your own roof was seen as crazy anarchist activity and was actively discouraged by regulation. After the NZED was broken up into corporations, making electricity on your own roof was seen as a potential threat to a state asset and would reduce the sale price if the corporations had to be sold.

    One significant way of reducing electricity use in New Zealand would be to put solar water heaters on every dwelling’s roof. The pay back for an individual home owner would be in a few years and the reduction in load would be significant. Presumably some of the fossil-fueled power generation in NZ would be reduced.

    One alternative to extending the motorway into Wellington (which will eventually be shown to “need” to have a second Mt Victoria tunnel and wipe out half of Haitaitai) could be to extend the suburban railway to the Wellington Airport, using the Miramar School site for a terminal. This, just like the Auckland loop, would need a cut and cover tunnel to Courtenay Place and then would need a tunnel to Cobham drive where an elevated section could lead to a curving tunnel under the airport. Logical other end on the line would be Palmerston North Airport which is usually open when Wellington is fogged in.

    Jeanette Fitzsimons has always had concerns about peak oil. She was concerned about oil price
    shocks on the NZ economy in the early 1990s.

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  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    3 hours ago
  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    6 hours ago
  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
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    1 day ago
  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • McClay reaffirms strong NZ-China trade relationship
    Trade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Prime Minister Luxon acknowledges legacy of Singapore Prime Minister Lee
    Prime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong.   Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PMs Luxon and Lee deepen Singapore-NZ ties
    Prime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong.  During today’s meeting, Prime Minister Luxon ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Antarctica New Zealand Board appointments
    Foreign Minister Winston Peters has made further appointments to the Board of Antarctica New Zealand as part of a continued effort to ensure the Scott Base Redevelopment project is delivered in a cost-effective and efficient manner.  The Minister has appointed Neville Harris as a new member of the Board. Mr ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Finance Minister travels to Washington DC
    Finance Minister Nicola Willis will travel to the United States on Tuesday to attend a meeting of the Five Finance Ministers group, with counterparts from Australia, the United States, Canada, and the United Kingdom.  “I am looking forward to meeting with our Five Finance partners on how we can work ...
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    3 days ago
  • Pet bonds a win/win for renters and landlords
    The coalition Government has today announced purrfect and pawsitive changes to the Residential Tenancies Act to give tenants with pets greater choice when looking for a rental property, says Housing Minister Chris Bishop. “Pets are important members of many Kiwi families. It’s estimated that around 64 per cent of New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Long Tunnel for SH1 Wellington being considered
    State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the Government has also asked NZ Transport Agency (NZTA) to consider and provide advice on a Long Tunnel option, Transport Minister Simeon Brown ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand condemns Iranian strikes
    Prime Minister Christopher Luxon and Foreign Minister Winston Peters have condemned Iran’s shocking and illegal strikes against Israel.    “These attacks are a major challenge to peace and stability in a region already under enormous pressure," Mr Luxon says.    "We are deeply concerned that miscalculation on any side could ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Huge interest in Government’s infrastructure plans
    Hundreds of people in little over a week have turned out in Northland to hear Regional Development Minister Shane Jones speak about plans for boosting the regional economy through infrastructure. About 200 people from the infrastructure and associated sectors attended an event headlined by Mr Jones in Whangarei today. Last ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Health Minister thanks outgoing Health New Zealand Chair
    Health Minister Dr Shane Reti has today thanked outgoing Health New Zealand – Te Whatu Ora Chair Dame Karen Poutasi for her service on the Board.   “Dame Karen tendered her resignation as Chair and as a member of the Board today,” says Dr Reti.  “I have asked her to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Roads of National Significance planning underway
    The NZ Transport Agency (NZTA) has signalled their proposed delivery approach for the Government’s 15 Roads of National Significance (RoNS), with the release of the State Highway Investment Proposal (SHIP) today, Transport Minister Simeon Brown says.  “Boosting economic growth and productivity is a key part of the Government’s plan to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Navigating an unstable global environment
    New Zealand is renewing its connections with a world facing urgent challenges by pursuing an active, energetic foreign policy, Foreign Minister Winston Peters says.   “Our country faces the most unstable global environment in decades,” Mr Peters says at the conclusion of two weeks of engagements in Egypt, Europe and the United States.    “We cannot afford to sit back in splendid ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NZ welcomes Australian Governor-General
    Prime Minister Christopher Luxon has announced the Australian Governor-General, His Excellency General The Honourable David Hurley and his wife Her Excellency Mrs Linda Hurley, will make a State visit to New Zealand from Tuesday 16 April to Thursday 18 April. The visit reciprocates the State visit of former Governor-General Dame Patsy Reddy ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pseudoephedrine back on shelves for Winter
    Associate Health Minister David Seymour has announced that Medsafe has approved 11 cold and flu medicines containing pseudoephedrine. Pharmaceutical suppliers have indicated they may be able to supply the first products in June. “This is much earlier than the original expectation of medicines being available by 2025. The Government recognised ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NZ and the US: an ever closer partnership
    New Zealand and the United States have recommitted to their strategic partnership in Washington DC today, pledging to work ever more closely together in support of shared values and interests, Foreign Minister Winston Peters says.    “The strategic environment that New Zealand and the United States face is considerably more ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Joint US and NZ declaration
    April 11, 2024 Joint Declaration by United States Secretary of State the Honorable Antony J. Blinken and New Zealand Minister of Foreign Affairs the Right Honourable Winston Peters We met today in Washington, D.C. to recommit to the historic partnership between our two countries and the principles that underpin it—rule ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • NZ and US to undertake further practical Pacific cooperation
    Foreign Minister Winston Peters has announced further New Zealand cooperation with the United States in the Pacific Islands region through $16.4 million in funding for initiatives in digital connectivity and oceans and fisheries research.   “New Zealand can achieve more in the Pacific if we work together more urgently and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government redress for Te Korowai o Wainuiārua
    The Government is continuing the bipartisan effort to restore its relationship with iwi as the Te Korowai o Wainuiārua Claims Settlement Bill passed its first reading in Parliament today, says Treaty Negotiations Minister Paul Goldsmith. “Historical grievances of Te Korowai o Wainuiārua relate to 19th century warfare, land purchased or taken ...
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    1 week ago
  • Focus on outstanding minerals permit applications
    New Zealand Petroleum and Minerals is working to resolve almost 150 outstanding minerals permit applications by the end of the financial year, enabling valuable mining activity and signalling to the sector that New Zealand is open for business, Resources Minister Shane Jones says.  “While there are no set timeframes for ...
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    1 week ago
  • Applications open for NZ-Ireland Research Call
    The New Zealand and Irish governments have today announced that applications for the 2024 New Zealand-Ireland Joint Research Call on Agriculture and Climate Change are now open. This is the third research call in the three-year Joint Research Initiative pilot launched in 2022 by the Ministry for Primary Industries and Ireland’s ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Tenancy rules changes to improve rental market
    The coalition Government has today announced changes to the Residential Tenancies Act to encourage landlords back to the rental property market, says Housing Minister Chris Bishop. “The previous Government waged a war on landlords. Many landlords told us this caused them to exit the rental market altogether. It caused worse ...
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    1 week ago
  • Boosting NZ’s trade and agricultural relationship with China
    Trade and Agriculture Minister Todd McClay will visit China next week, to strengthen relationships, support Kiwi exporters and promote New Zealand businesses on the world stage. “China is one of New Zealand’s most significant trade and economic relationships and remains an important destination for New Zealand’s products, accounting for nearly 22 per cent of our good and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Freshwater farm plan systems to be improved
    The coalition Government intends to improve freshwater farm plans so that they are more cost-effective and practical for farmers, Associate Environment Minister Andrew Hoggard and Agriculture Minister Todd McClay have announced. “A fit-for-purpose freshwater farm plan system will enable farmers and growers to find the right solutions for their farm ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Fast Track Projects advisory group named
    The coalition Government has today announced the expert advisory group who will provide independent recommendations to Ministers on projects to be included in the Fast Track Approvals Bill, say RMA Reform Minister Chris Bishop and Regional Development Minister Shane Jones. “Our Fast Track Approval process will make it easier and ...
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    1 week ago
  • Pacific and Gaza focus of UN talks
    Foreign Minister Winston Peters says his official talks with the United Nations Secretary-General Antonio Guterres in New York today focused on a shared commitment to partnering with the Pacific Islands region and a common concern about the humanitarian catastrophe in Gaza.    “Small states in the Pacific rely on collective ...
    BeehiveBy beehive.govt.nz
    1 week ago

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