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IEA predicts global oil crisis

The ABC reports that an oil shortage is predicted soon. The International Energy Agency predicts that oil supply problems will start within the next five years. Oil production has been dropping over the last two years (we have passed the “peak oil” point) and demand is steadily increasing. Regardless of wars oil prices will increase significantly in the near future.

According to the Australian Bureau of Statistics the average age of Australian cars was 10.7 years at the end of 1998. So the vast majority of the current fuel-hungry cars on Australian roads will still be in use in five years time – if the owners can afford them.

The government needs to start providing tax incentives for fuel efficient cars and to end tax incentives for inefficient cars. Currently 4WD vehicles have reduced taxes and the tax deduction for a business car is based on the engine size (get a less efficient car and get a bigger tax deduction).

The government claims to be protecting the economy (at the expense of the environment). But with the way things currently work the economy will be destroyed in less than five years.

Even though the government cares little for the environment (in spite of the effect that climate change is having on farmers) they need to do something if they want to fulfill their claims of protecting the economy!

Thanks to Chris Samuel for informing me of this.

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