[Peakoil] Senators join forces to demand cut in oil use

[Antony Barry]

 From The Age

Congestion — there could be a price to pay
Senators join forces to demand cut in oil use


William Birnbauer
February 11, 2007


Congestion charges should be considered on busy roads as a means of  
improving road efficiency and reducing pollution and greenhouse gas  
emissions, an inquiry into Australia's future oil supplies and  
alternative fuels has recommended.

However, congestion charges in central districts, like those levied  
in London, or that use electronic tolling, would be politically  
acceptable only if the revenue was channelled into public transport.

The inquiry heard that congestion charges could reduce fuel use in  
Australian cities by 30 per cent, reduce peak-hour travel by 20 per  
cent and cut overall travel time by 40 per cent.

"While the economic case for congestion charging is strong,  
politically it has been very difficult to implement because of the  
perception that it is yet another tax on motorists," says the final  
report of a Senate committee inquiry into future oil supplies.

Congestion charging was one of several options that required further  
investigation according to the Senate's inquiry. The Senate  
committee's report, tabled last week, found that serious measures  
were needed to secure Australia's oil supplies in the face of  
increasing demand and a decline in reserves.

The committee recognised that big improvements to public transport  
infrastructure, particularly rail, were difficult to finance from  
state budgets and were easy to shelve in favour of roadworks.

While not suggesting a Commonwealth takeover of public transport, the  
committee's report says there may be a case for Commonwealth  
assistance for rail extensions. It urges the Council of Australian  
Governments to consider this as a national infrastructure priority.

The committee also expresses concern that little progress has been  
made in achieving voluntary fuel efficiency targets for new passenger  
cars, mainly because of increased four-wheel-drive sales.

Under a 2003 voluntary target agreed to by the Federal Government and  
the Federal Chamber of Automotive Industries, new passenger cars  
should achieve fuel efficiency of 6.8 litres per 100 kilometres by  
2010. In 2001, the average for new cars was 8.28 litres and 11 litres  
for all-terrain vehicles. "It is unclear what progress has been made  
to achieve the code's target," the report says. The committee  
recommends that if the target seems unlikely to be met, other  
measures, such as incentives or even mandatory codes, should be  
examined.

It says the fringe benefits concession on employer-provided cars  
ought to be reviewed because of its "perverse incentives for more car  
use".Congestion — there could be a price to pay.


Congestion charges should be considered on busy roads as a means of  
improving road efficiency and reducing pollution and greenhouse gas  
emissions, an inquiry into Australia's future oil supplies and  
alternative fuels has recommended.

However, congestion charges in central districts, like those levied  
in London, or that use electronic tolling, would be politically  
acceptable only if the revenue was channelled into public transport.

The inquiry heard that congestion charges could reduce fuel use in  
Australian cities by 30 per cent, reduce peak-hour travel by 20 per  
cent and cut overall travel time by 40 per cent.

"While the economic case for congestion charging is strong,  
politically it has been very difficult to implement because of the  
perception that it is yet another tax on motorists," says the final  
report of a Senate committee inquiry into future oil supplies.

Congestion charging was one of several options that required further  
investigation according to the Senate's inquiry. The Senate  
committee's report, tabled last week, found that serious measures  
were needed to secure Australia's oil supplies in the face of  
increasing demand and a decline in reserves.

The committee recognised that big improvements to public transport  
infrastructure, particularly rail, were difficult to finance from  
state budgets and were easy to shelve in favour of roadworks.

While not suggesting a Commonwealth takeover of public transport, the  
committee's report says there may be a case for Commonwealth  
assistance for rail extensions. It urges the Council of Australian  
Governments to consider this as a national infrastructure priority.

The committee also expresses concern that little progress has been  
made in achieving voluntary fuel efficiency targets for new passenger  
cars, mainly because of increased four-wheel-drive sales.

Under a 2003 voluntary target agreed to by the Federal Government and  
the Federal Chamber of Automotive Industries, new passenger cars  
should achieve fuel efficiency of 6.8 litres per 100 kilometres by  
2010. In 2001, the average for new cars was 8.28 litres and 11 litres  
for all-terrain vehicles. "It is unclear what progress has been made  
to achieve the code's target," the report says. The committee  
recommends that if the target seems unlikely to be met, other  
measures, such as incentives or even mandatory codes, should be  
examined.

It says the fringe benefits concession on employer-provided cars  
ought to be reviewed because of its "perverse incentives for more car  
use".
On the supply side, the inquiry found that discoveries of new oil  
fields in Australia had declined sharply since the 1960s. Demand for  
petroleum, at 750,000 barrels a day, would jump to 1.2 million  
barrels by 2029-30.

Meanwhile, Australia's net self-sufficiency in oil and petroleum  
products over the next 20 years would slump from 84 per cent to 20  
per cent, according to a mid-range estimate by Geoscience Australia.  
In 2005, imports exceeded exports by $4.7 billion. But estimates  
suggest that by 2015, this figure could be between $12 billion and  
$25 billion.

The bipartisan Senate standing committee on rural and regional  
affairs weighed up the controversy over "peak oil" concerns. 'Peak  
oil' adherents predict that a peak in conventional oil production  
will occur before 2030. They say declining oil supplies and increased  
prices will cause serious financial hardship and economic disruption.

The committee found that while the timing may be uncertain the  
concept "appears to be widely accepted".

It concluded that the possibility of it occurring before 2030 should  
be a matter of concern. "In view of the enormous changes that will be  
needed to move to a less oil dependent future, Australia should be  
planning for it now," he says.

The committee says Australia's energy policies needed updating to  
reduce dependency on oil and develop alternatives. Market forces, it  
says, would not solve the problem. "… Government initiative will be  
essential to move towards a less oil-dependent future".

The report examines alternative fuel sources and expresses concern  
about LPG's long-term supply, and the technical challenges of hydrogen.

The report notes that about $100 million a year is spent on cycling  
infrastructure and promotion — 2 per cent of the $5 billion a year  
that is spent on roads. Daniel Bowen from the Public Transport Users  
Association said the inquiry's findings show that maintaining the  
transport status quo was a recipe for disaster. "We're burning oil as  
if there's no tomorrow, but when tomorrow comes we'll find rampant  
climate change and major transport problems for car-dependent  
communities," he said.

The Greens' energy and climate spokeswoman, Senator Christine Milne,  
who initiated the Senate inquiry, said the report showed that  
Australia had an energy security crisis due to the government's  
failure to address dependence on oil.

Report available online at: www.aph.gov.au/Senate/committee/rrat-ctte/ 
oil-supply/report/
The London experience
London motorists pay a congestion charge of about $20 a day to drive  
in central areas between 7am and 6pm, Monday to Friday. Residents are  
entitled to discounts of up to 90 per cent when paying the charge.  
Drivers who do not pay the charge face a penalty of about $250.

Mayor Ken Livingstone says the charge, introduced in 2003, has led to  
an average 26 per cent reduction in congestion, reduced emissions by  
13 to 15 per cent, and has boosted cycling by 43 per cent. The money  
raised is invested in London's public transport system.On the supply  
side, the inquiry found that discoveries of new oil fields in  
Australia had declined sharply since the 1960s. Demand for petroleum,  
at 750,000 barrels a day, would jump to 1.2 million barrels by 2029-30.

Meanwhile, Australia's net self-sufficiency in oil and petroleum  
products over the next 20 years would slump from 84 per cent to 20  
per cent, according to a mid-range estimate by Geoscience Australia.  
In 2005, imports exceeded exports by $4.7 billion. But estimates  
suggest that by 2015, this figure could be between $12 billion and  
$25 billion.

The bipartisan Senate standing committee on rural and regional  
affairs weighed up the controversy over "peak oil" concerns. 'Peak  
oil' adherents predict that a peak in conventional oil production  
will occur before 2030. They say declining oil supplies and increased  
prices will cause serious financial hardship and economic disruption.

The committee found that while the timing may be uncertain the  
concept "appears to be widely accepted".

It concluded that the possibility of it occurring before 2030 should  
be a matter of concern. "In view of the enormous changes that will be  
needed to move to a less oil dependent future, Australia should be  
planning for it now," he says.

The committee says Australia's energy policies needed updating to  
reduce dependency on oil and develop alternatives. Market forces, it  
says, would not solve the problem. "… Government initiative will be  
essential to move towards a less oil-dependent future".

The report examines alternative fuel sources and expresses concern  
about LPG's long-term supply, and the technical challenges of hydrogen.

The report notes that about $100 million a year is spent on cycling  
infrastructure and promotion — 2 per cent of the $5 billion a year  
that is spent on roads. Daniel Bowen from the Public Transport Users  
Association said the inquiry's findings show that maintaining the  
transport status quo was a recipe for disaster. "We're burning oil as  
if there's no tomorrow, but when tomorrow comes we'll find rampant  
climate change and major transport problems for car-dependent  
communities," he said.

The Greens' energy and climate spokeswoman, Senator Christine Milne,  
who initiated the Senate inquiry, said the report showed that  
Australia had an energy security crisis due to the government's  
failure to address dependence on oil.

Report available online at: www.aph.gov.au/Senate/committee/rrat-ctte/ 
oil-supply/report/
The London experience
London motorists pay a congestion charge of about $20 a day to drive  
in central areas between 7am and 6pm, Monday to Friday. Residents are  
entitled to discounts of up to 90 per cent when paying the charge.  
Drivers who do not pay the charge face a penalty of about $250.

Mayor Ken Livingstone says the charge, introduced in 2003, has led to  
an average 26 per cent reduction in congestion, reduced emissions by  
13 to 15 per cent, and has boosted cycling by 43 per cent. The money  
raised is invested in London's public transport system.

Source:<http://www.theage.com.au/news/national/congestion-8212-there- 
could-be-a-price-to-pay/2007/02/10/1170524347089.html>
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