The Oil Drum

Bruce Robinson from ASPO Australia has been quoted by The Age as calling for the introduction of petrol rationing.

AS CRUDE oil sits at record high prices and economists remain concerned about its economic impact, one group has proposed the war-time measure of rationing.

The Australian Association for the Study of Peak Oil and Gas (ASPO), a group that lobbies for sustainable transport options, is calling for the return of the petrol allocation system used in Australia during World War II.

Bruce Robinson, ASPO's national convener, said the idea was becoming "increasingly essential" with petrol prices hovering around $1.50 a litre and rising interest rates already hurting households. The impact on the economy of inaction would be "dire", he said.

What's the meltdown price for uranium?

Add another certainty to death and taxes: Barring some sort of nuclear catastrophe or an instant, massive influx of new supply, the price of uranium oxide is going to continue its shocking rise for now.

The question for the fissile metal's producers, and for investors seeking to cash in on the gains, is how high can it get before its key nuclear power plant consumers defer plans to add reactors, or try to cut consumption at existing plants, as they wait for much delayed new mine supplies to come on stream and bring the price back down?

Since bottoming out at just $7 (U.S.) a pound in December, 2001, the "yellowcake" spot price has climbed almost exponentially, hitting $40 a pound about a year ago and a startling $120 a pound last month. This means it is very close to shattering the record high of $43 it hit back in 1979, which, adjusted for inflation, is the equivalent of $122.42 today. Already, some producers are predicting it could rise to $250 some time next year.

Looking forward it is clear that the business-as-usual energy policy is “not fit for purpose”. The current system is proving itself inadequate when faced with twin challenges of fossil fuel depletion and climate change. The energy markets are likely to respond to future shortages with profiteering, grossly inequitable allocation and globally destabilising financial flows.

A rationing system is required which can both facilitate equitable allocation of the diminishing resource whilst simultaneously reducing the carbon dioxide released.

Formulated by Dr David Fleming and first published in 1996 as Domestic Tradable Quotas (DTQs), Tradable Energy Quotas known as TEQs (pronounced “tex”) are just such a system. TEQs are an electronic rationing system that includes everyone, bringing citizens, industry and Government together in a single scheme with a common purpose. The structure of this scheme is detailed in Fleming’s excellent short book (available at www.teqs.net) detailed below.

Below is an overview of TEQs written for TOD by David Fleming, he will be reading your comments.