Bush calls for fuel saving as energy efficiency rises up world political agenda
Fri 30 September 2005
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President Bush issued a call to Americans to save fuel by driving less following supply disruptions caused by Hurricane Katrina. Meanwhile, high oil prices and fears for the world economy have lifted energy saving much higher up the world political agenda.
The US President also issued a directive to federal agencies to reduce energy consumption and encouraged employees to share cars or use public transport.
The Financial Times reports that both the International Monetary Fund and the G7 -the grouping of leading economic powers -have issued calls for more energy conservation to help ensure stable growth.
The emphasis on fuel efficiency has arisen because the oil price has been in the $60-$70 range for some time - double the level of 18 months ago - and because of fears that the future supply of oil may not be able to keep up with demand. Supply problems have been exacerbated by the damage to southern US oil refineries caused by the recent hurricanes.
Doubts about the level of future oil reserves and comments from some experts that oil production may be at, or close to, its physical limits have raised the prospect of continuing high - or even higher - fuel prices.
Sadad Al-Husseini, former head of production for Saudi Aramco, the world's largest oil producer - responsible for about a quarter of world production - said: "The best alternative is energy efficiency. There is too much wastage with energy. There are too many cars that are far bigger than what they need to be." (Reported in the FT)
Mr Husseini said that predictions of oil demand reaching 120m barrels a day in 20 years (40% above current levels) were nonsense as there was not going to be enough oil to sustain this level of consumption.
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Financial Times story link
The Guardian story link
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