The Strait of Hormuz is still effectively shut. The Iranians have now attacked 13 tankers. The boss of the Saudi-backed oil company has warned this could be catastrophic for the world’s economy if that strait isn’t opened relatively soon.
South Korea has floated the possibility of banning fuel exports. That’s a problem for us - it’s where we get roughly half of our fuel.
Parts of rural Western Australia have already run out of diesel because the townies are buying so much of it. They’re panicking. We have around 50 days’ worth of fuel in this country. Half of that, though, is on the water - and ships can be and have been diverted - so you can only really lock in about half of what we’ve got.
The Minister is now taking advice on how to manage demand, meaning how to get us to use less. One of the ideas he’s considering is the return of carless days.
There are normally very level‑headed people now warning us that we should at least start mentally preparing for the possibility that we may have to ration the fuel we use.
Now, rationing sounds bad. It sounds like something from World War II. But it might not be that bad. It may not be carless days all over again - although that does feel like a significant escalation of the situation. And of course this whole thing might blow over tomorrow.
In fact, Donald Trump is likely to call the attacks off the minute they start having really significant negative impacts on oil supply and world economies because he is so fixated on global markets and making money. The moment he cannot talk markets back into a good place is the moment I think he starts to call it off.
But the thing is, it’s already having an impact, isn’t it? It will already be wiping money off our GDP. And the longer it goes on, the more it takes out of GDP.
Now, I’m thinking this is not going to end in the worst-case scenario the Minister is preparing for. I don’t know whether that’s my wishful or my rational brain talking but as they say - hope for the best, prepare for the worst.
Heather du Plessis-Allan is a journalist and commentator who hosts Newstalk ZB's Drive show. This article was sourced from Newstalk ZB.
6 comments:
If oil does run out, we will get to see what the Green Party's idea of paradise looks like.
I already prepared for the worst Heather. I bought an electic car.
Does any New Zealander, of a late age, recall why Robert Muldoon set about building Marsden Point?
When you research (if you are so inclined) ensure you delve into -
- reasons for construction
- who was going to benefit
- and how many International Petrol Co's, then residing in NZ and selling you petrol for everything got behind the 'scheme' and what & how it was going to benefit their services
- which Pacific Nations were going to benefit from this refinery/distribution center.
- what it would mean for NZ, should an International incident [such as current one, which is not the first] - benefit & protect NZ Petrol/diesel / aviation fuel / machinery oils.
Then look at why a sad, ignorant, out of touch female who became our PM decided we did not need it.
We now 'pay the price' for that stupidity.
Trump said the war is nearly over so I dunno what you lot are banging on about. It’ll all blow over! Yeesh.
Pity Anon 11.31's exhaustive research failed to uncover the fact that the Marsden Point refinery was owned by a publicly listed company, New Zealand Refining Company Limited, whose board closed it down for perfectly sound commercial reasons. Reasons which were well signalled through the usual stock exchange and media channels and confirmed by the shareholders. What the Government of the day may or may not have thought is completely irrelevant to that decision, much less the opinion of an individual member of that Government.
Bollocks, you tell me the owners of the Refinery announce we’re closing down and the govt of the day shrugs its shoulders and say's. “ oh dear , what a pity”
The Government liked the fact the Refinery closed because it meant the countries CO2 emissions reduced, by quite a lot and made them look good. It suited their agenda to have the Refinery close and bugger the consequences.
What also didn’t help is ignorant journalists like Patrick Smellie spouting what a good idea closing the Refinery was.
How’s that worked out for the Country Patrick?
Got any other bright ideas to save us from third world status?
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