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Thursday 10 December 2015

Energy Security, Infrastructure and Risk-Management

Recent media reports (eg "Collateral Damage Takes Toll" by Ambrose Evans-Pritchard, at foot of this post) have renewed discussion of energy futures and energy security, especially for transport. On Tuesday 8th December, the STC wrote the letter below (not yet published) to the West Australian:

Dear Sir,

We note with alarm the themes documented in the business columns of last Saturday's West Australian ("Collateral Damage Takes Toll" by Ambrose Evans-Pritchard).  In light of the risks to global oil security and the near certainty of renewed oil price inflation in the near future we cannot understand the absence of strategic risk management and appropriate infrastructure investment in Australia.

Australia fails to abide by the oil storage commitments required by the International Energy Agency.  Adding insult to injury, oil refineries in the nation are being closed down as though they are fast going out of fashion, such that 90% of our refined fuels are being imported!!  Meanwhile our State Government has only managed to extend our rail network by a few kilometres since coming into power (the extension of the Butler line in 2014).  It has "postponed" MAX light rail and purchase of new rail cars, and is closing freight rail lines in the Wheatbelt, our very own Bread Basket.

Other state capitals are busily constructing new passenger rail lines and 21st Century  light rail systems.  Overseas countries are also 'doubling down' on public transport investment, while some countries such as Norway are also promoting the use of electric vehicles by their population.    

We hope the time is not too distant when our governments undertake proper risk management and re-evaluate their infrastructure investment and energy security priorities.  This will help protect our country and our State from future energy supply shocks and the disastrous impacts of runaway oil price inflation. 

The same day, the ABC reported Senator Bill Heffernan's expressing similar concerns on fuel security - not only in its own right but also for its potential effect on national security as a whole.
http://www.abc.net.au/news/2015-12-08/fuel/7012166

As we noted in our letter, it's time to undertake proper risk management and re-evaluate infrastructure investment and energy security priorities.
http://www.pressreader.com/australia/the-west-australian/20151205/282278139261298/TextView
Posted by Ian Ker, Convenor, STCWA

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