The good oil is that stocks are already running thin

AUSTRALIA’S abundant endowment of natural resources has provided a cushion against the need for energy security policies. No longer.

Declining domestic oil production, refinery disruptions, extended supply lines, geopolitical turmoil and the carbon constrained future are all sending warning signals: Australia’s easy energy ride is over, and moves to encourage renewable transport energy sources are long overdue.

It is a message the Howard government ignored. Rudd so far has shown little interest.

Given Australia’s increasing reliance on oil imports, and our relative isolation, such political apathy is a mystery.

Some attribute it to government concern to appease the oil majors to keep them in the local refining business.

Refinery numbers have been cut to seven, all owned by the oil majors. More refinery consolidation is widely expected, further inhibiting competition.

Others believe there is a widespread view in the bureaucracy that Australia has a window of about 20 to 30 years before peak oil has an impact on global markets. Why worry about renewables while there is a flourishing global trade in cheaper oil?

The Age