Expert urges response to looming oil supply problems

An internationally recognised expert in energy market analysis and energy forecasting warns liquid fuel shortages, massive unemployment, high interest rates and severe recession are some of the impacts facing Australian supply chains and the broader community if governments and companies do not prepare now for the peaking and subsequent decline of world oil production.

Dr Roger Bezdek, an internationally recognised expert in energy market analysis and energy forecasting and President, Management Information Services, USA, has co-authored two reports for the US Department of Energy on the economic impacts and risk management of declining oil supplies and liquid fuel mitigation options.

According to Dr Bezdek, future oil shortages are expected to impact on virtually all aspects of the supply chain, especially transportation. With such an unfamiliar global situation so close, preparation and planning are crucial.

“In a micro sense, supply chain managers have to recognise what is likely to happen in the future and change their plans and methods of doing business accordingly. For example, shifting to more efficient and secure models of transportation and inventory management,” says Dr Bezdek.

Supply Chain Review