For all the anger around the world, the era of cheap fuel has ended

Gordon Brown this week described the present economic crisis as the third great “oil shock” of recent decades. In fact, there are important differences between the present situation and the energy shocks of the 1970s. The cause of the high price of oil in that unhappy era was Middle Eastern producers cutting back supply for political reasons; the fundamental reason for soaring prices today is a surge in demand from the rapidly growing economies of Asia. Yet the Prime Minister was justified in drawing a comparison with regard to the political ramifications.

This means we need to begin the long overdue task of breaking our reliance on the power source of fossil fuels. Governments and businesses need to invest heavily in sustainable energy sources, such as wind turbines, solar and wave power. And there must be a concerted effort from all of us to conserve energy. The transition must be carefully and sensitively managed, of course. In terms of domestic heating costs, this means governments (especially those in colder nations) heavily subsidising home insulation, energy conservation and micro-generation schemes. And some developing world governments with high food prices (one of the consequences of higher energy costs) will need help from richer countries to ensure that their people do not starve.

The Independent