The Standard » energy

Rock and a hard place

James Henderson — Thu, 10 May 2012 23:49:35 +0000

We're in a second mini-recession/stall since the Great Recession began in 2008. As in 2010, oil prices ramped up and growth petered out. Now, oil prices have dropped back a little. But the moment the economy shows mild signs of life, they'll be back up again. Short periods of weak growth, oil price shocks, recessions - sounds like the cycle peak oil economists have predicted for years.

$5 a litre petrol, here we come

James Henderson — Wed, 02 May 2012 21:00:33 +0000

Last week, the IMF warned that oil prices will double over and above inflation in the next decade. The Greens crunched the numbers and say that means we'll be paying $5 a litre for petrol in 2022. If it wasn't clear before, it is now. A handful of white elephant highways is a poor use of $14 billion, especially when petrol is only getting more expensive.

Asset sales mean power price rises

Eddie — Tue, 24 Apr 2012 19:56:47 +0000

Molly Melhuish was one of dozens of oral submitters on the ~~Privatising Your Assets~~ Mixed Ownership Model Bill yesterday - all opposed. Her research shows the average price of power from a private provider is 3.31 c/kWh higher than from an SOE. Contact Energy's boss says private investors need prices to rise even more. The implication is privatisation will remove the shackles.

Earth Hour

The Standard — Sat, 31 Mar 2012 07:24:56 +0000

OK - so we're a bit late with this - but it's Earth Hour, 8:30 - 9:30pm NZ time.

Farrar discovers peak oil, nearly

James Henderson — Mon, 19 Mar 2012 23:28:46 +0000

Barack Obama will be breathing a sigh of relief after David Farrar endorsed his call to end oil subsidies. It seems the 3rd oil price spike in 5 years is getting the attention of even the Right. Something, they've got an inkling, is wrong and rising petrol prices are here to stay. Pity that, on the cusp of revelation, Farrar opts for the security blanket of neoclassical economics.

Iran

Michael Valley — Sat, 03 Mar 2012 20:20:51 +0000

Israel and the US have both been ratcheting up their rhetoric against Iran in the past few months and an attack on Iran's nuclear facilities looks highly likely. Just the other day, Obama told Iran to stop its nuclear programme or else adding, "I don't bluff". I really, really hope he's bluffing. Because Iran's ready to make an attack on it cost the world big time.

Ryall confirms asset stripping on the cards

James Henderson — Thu, 01 Mar 2012 20:50:48 +0000

So, National wants to re-assure us that, when they sell our assets against our will, they'll keep 51% and control. But, um, minority shareholders have rights and private boards have to maximise profits ahead of the national interest. If they decide to sell off the dams later they can, and the Nats won't stop them.

MoT reveals massive budget shortfall from peak oil

James Henderson — Fri, 03 Feb 2012 18:33:01 +0000

Almost missed among all the blacked out paragraphs of the Transport Briefing to the Incoming Minister are 2 interesting graphs. While not explicitly mentioning peak oil, the graph of the National Land Transport Fund shows a massive shortfall in revenue in a 'high oil price, low growth' scenario. The other shows how low-quality National's highway spending is.

NRT: Climate change: Cross-purposes

The Standard — Thu, 02 Feb 2012 23:15:31 +0000

No Right Turn has a look at two of the incoming minister briefings impacting on climate change. They are incoherent and it is clear that neither ministry talks to the other. If it wasn't affecting a important long term issue, it'd be as funny as a Yes Minister episode. But since it does, it just highlights the growing incoherence of this incompetent government and their increasing politicization of the civil service.

Oz & NZ govts suppress official peak oil warnings

The Standard — Wed, 25 Jan 2012 23:40:32 +0000

Dennis Tegg has a good piece on the release of a secret Australian government report that warns peak oil is upon us: The Daily Telegraph has revealed how the Australian government has attempted to suppress its own report on peak oil. The response from the New Zealand government had been equally secretive and obfuscating.

Adapting to peak oil

James Henderson — Thu, 19 Jan 2012 19:45:19 +0000

As peak oil slowly grinds down our economy - meeting any hint of growth with sky-high petrol prices and making $2 a litre the 'new normal', we are actually, gradually,starting to react. Not at a governmental level, where action is most urgently needed, but in the decisions made by ordinary Kiwis every day.

Texas of the South Seas?

James Henderson — Mon, 16 Jan 2012 21:57:59 +0000

Every few years, since the 70s, they've promised the great New Zealand oil boom is coming. It ain't going to happen. If there is lots of oil, it's deepsea and expensive. And they haven't found it in 40 years of looking. We have a worse production-consumption ratio now then the 80s. Even if we somehow become a massive oil exporter, it's not the economic panacea you might think.

In praise of David Cunliffe

James Henderson — Sun, 04 Dec 2011 22:25:44 +0000

I enjoyed Jenny's piece the other day on David Shearer's leadership abilities. His skill at taking the ball and running with it, and doing what he thinks is right. I want to similarly praise David Cunliffe for his leadership in economic thinking. God knows we need someone who gets the problems and the solutions. Cunliffe brings that understanding in droves.

Buying back the assets

Eddie — Sun, 04 Dec 2011 20:26:51 +0000

David Cunliffe has said that, if he is Labour leader, he will look to buy back any assets National sells once he is PM. Under the existing Takeovers Code, that wouldn't be too hard. But why not go a step further and make it clear to any potential investor that our energy sector won't be their cash cow? A bit of regulatory reform would sink the assets' share value.

NoRightTurn: National on energy

The Standard — Mon, 14 Nov 2011 20:14:25 +0000

NoRightTurn reviews the joke that is National's energy policy: "National has released its energy policy. The short version? "Drill it, mine it, sell it". Yes, seriously. A bright, shiny future, funded by magic money put in the ground by Leprechauns. Which we haven't discovered yet. Its like basing your household budget on winning the lottery."