[Peakoil] Labor fuel blueprint

[Alex P]

Hi folks,

A speech by Kim Beazley on Australia's fuel crisis.

It does mention a "sustainable" ethanol industry. It would be good if at 
the very least reference were made to the need for a science-based approach 
and a positive Energy Return on Energy Invested in all proposed solutions.

Alex
O4O4873828

ACT Peak Oil discussion list
http://act-peakoil.org




LEADER OF THE OPPOSITION

THE HON KIM C BEAZLEY MP

ADDRESS TO THE

FORUM ON LABOR’S FUEL BLUEPRINT

FILM & TELEVISION INSTITUTE

FREMANTLE, WESTERN AUSTRALIA

18 FEBRUARY 2006

 

I am very pleased to participate in today’s forum on Labor’s Fuels 
Blueprint.

It’s great to see so many local branch members here today as well as 
members of the Sustainable Transport Coalition.

I commend your efforts to raise awareness about new transport solutions.

I am also looking forward to hearing from fuels expert David Worth.

Last year I announced Labor’s Blueprint on Fuels – a strategy to make us 
more self-sufficient by increasing the use of Australian transport fuels 
and developing fuels that are cleaner and cheaper.

More fuel – more types of fuel. Cleaner fuels – cheaper fuels – Australian 
fuels. 

 

We need national leadership to develop:

 

·              Existing alternatives like liquid petroleum gas, ethanol and 
biodiesel;

 

·              Emerging alternatives such as compressed natural gas, liquid 
fuel from gas and stored electricity; and

 

·              Future fuels, such as hydrogen.

 

We also need to develop the technologies to make it happen.  We do this 
because our transport fuel markets need a fresh blast of competition.

 

We must make Australia less vulnerable to external shocks.

 

We must make Australia less reliant on the foreign oil affecting our trade 
deficit and foreign debt.

 

We must play a leading role in emerging energy sectors to boost our export 
performance and take advantage of opportunities in world markets.  We must 
invest in preserving our environment by diversifying our fuel base beyond 
petrol to biofuels and gas and hydrogen.


THE FUEL PROBLEM

David will talk in more detail about the fuel problem – how we are running 
out of oil – but allow me to outline why I believe Australia is facing a 
fuel crisis.

In the past three years, global oil prices have trebled. Australians spent 
an extra $2.3 billion on petrol last year compared with 2004.

Our dependence on foreign oil. Crude oil is our second biggest import item 
and refined petroleum our sixth biggest and, together, they constitute the 
largest import item on our trade accounts.

In net terms, Australia relies on imports for 17% of overall petrol 
consumption but by 2020, the Australian Bureau of Agricultural and Resource 
Economics estimates the figure will rise to 46%. Other industry analysts 
think this view is optimistic, saying our oil import dependency will rise 
to 78% over the next 10 years. That’s four out of every five tanks of 
petrol!

The equation is simple – as our dependency grows, so does our exposure – 
with serious implications for our economy.

The current fuel crisis could see the price of petrol rise to $5.00 a litre 
within a decade. The country is in need of national leadership to develop 
alternative fuels but the Government just sits on its hands and says: “I 
don’t know”.

The best John Howard can offer is:

“World oil prices are not something the Australian government, or any 
government, can influence. They are out of our control.”

His Minister for Resources is no better. He says:

“At this stage Australia’s fuel security is still good. Do we need to find 
more oil? Yes we do. But short of finding more oil I don’t know what the 
solution is.”

There is a long term solution – it is to diversify our fuel base and 
growing the Australian fuel industry. But this is not in the Government’s 
mind – I say it’s a national and urgent priority.

OVERSEAS DEVELOPMENTS


 

Because we are being left for dead by most other industrialised nations.


o       The European Union is pouring massive investment into clean fuel 
cell technology;

o       In the United States, President George Bush has put in place a five-
year $US1.7 billion commitment to develop hydrogen energy and fuel cell 
technology.  Even in the United States, where cars are bigger than houses, 
George Bush declares that their oil ‘addiction’ must be addressed; 

o       Iceland sets the benchmark – committed to becoming the world’s 
first hydrogen economy over the next 30 years – ending its reliance on 
fossil and foreign fuels;

o       In the oil-rich Middle East, Qatar has declared it will become the 
gas to liquids capital of the world. It already has major gas to liquids 
projects making ultra clean diesel and has made a $10 billion 
infrastructure investment in Ras Laffan Industrial City;

o       Brazil is the dominant player in fuel ethanol. For the last 30 
years, all petrol sold in Brazil has contained at least 25% ethanol.  While 
we have been paying sixty five or seventy US dollars for a barrel for oil, 
Brazilian firms are producing ethanol for $US28.00 a barrel; and

o       Sweden recently proclaimed its ambition to be oil-free by 2020 – in 
just 15 years time!

LABOR’S PLAN

Labor believes in developing a diversified Australian fuel Industry. We are 
running out of old fuels yet potentially have a plentiful supply of new 
fuels – if only our Government had the vision to develop them.

Under a Labor Government, Australia would have a comprehensive Australian 
Fuel Industry Plan to foster the development of a more diversified fuel 
production base. 

Too much gas is left in the ground while our economy needs it. I am 
committed to putting in place effective incentives for development of this 
resource, and for a healthy resources sector in the long-term. That’s why 
we will:

o       Re-examine the depreciation regime for gas production 
infrastructure; 

o       Allow the selective use of “flow-through” share schemes for smaller 
operators; and

o       Implement regional resource infrastructure funds to help meet the 
cost of providing supporting infrastructure for onshore gas and minerals 
processing projects helping to grow the industry.

We must also foster demand for new Australian fuels and technologies by: 

o       Making alternative fuel vehicles tariff free, cutting up to $2000 
off the price of current hybrid cars; 

o       Working with state and local government to give city traffic and 
parking advantages for these vehicles; and 

o       Examining the granting of tax rebates for converting petrol cars to 
LPG.

Australia also needs to lead the global race for innovation and the 
development of new fuels and fuel technologies. To achieve this Labor would:

o       Conduct a feasibility study into a gas to liquids fuels plant in 
Australia; 

o       Offer Petroleum Resources Rent Tax incentives for developers of gas 
fields which provide resources for gas to liquid fuels projects; 

o       Examine a new infrastructure investment allowance for investment in 
Australian gas to liquids infrastructure; 

o       Develop a targeted funding scheme for research and development in 
this area; and 

o       Work with industry to improve engine design and fuel quality 
standards.

We need a new stream of contestable grants, supporting proposals for 
research into alternative fuel and its associated technologies. These 
grants would go to projects accessing existing private and public research 
money, leveraging in extra funds as well as demanding new priorities from 
Australia’s research community.

In relation to bio-fuels, Labor proposes to:

o       Ease regulation of biodiesel production on farms; and 

o       Encourage a sustainable ethanol industry.

 

Conclusion

 

My vision for Australia is a country that stands on its own two feet.  A 
country that invests in protecting its prosperity.  An economy that does 
not shake under the weight of a global oil shock.  And a country smart 
enough, determined enough and well able to set and achieve national goals.

 

Under John Howard and Peter Costello, Australia is a country without 
national goals – a country led by an arrogant government running out of 
control. That puts protecting its own political interests ahead of the 
national interest.

 

That sacrifices national leadership for self-preservation.

 

Now more than ever Australia needs national leadership to develop a 
diversified Australian fuel industry that. 

 

I look forward to your questions and comments.