Oil running out, says Atlantic head

Press, Volume CXV, Issue 33957, 25 September 1975, Page 3

Oil running out, says Atlantic head

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HANGAREI, September 24.

A leading New Zealand oil executive today said that the energy crisis was the most important issue of the present decade.

New Zealand must expect a lasting problem with energy, said the general manager of the Atlantic Oil Company, Ltd (Mr .1. A. Hazlett). It was appropriate that! the road transport industry [ examine the energy crisis as it affected the industry, he, said at the ninth annual conference of the Road Trans-' port Association in Wha-' ngarei. Until new sources of energy were found, the world would pivot on oil and gas. and that was why 7 the energy crisis existed today, Mr Hazlett said. “If it is a common mis-‘ ’conception that the energy! crisis blew up suddenly! overnight, it is just as com- ■ mon a misconception that; when world oil began! flowing again in 1974 — at a greatly inflated price — the crisis was over. "Such was not the case. Misconception “Another common misconception is that the energy crisis erupted out of I dust generated by conflict. The oil industry has, for* at least the last decade, been warning of shortages, andi urging development of alternative energy sources. “We have long been aware: that between 1970 and 1985, 1

the world will consume | .almost as much as it has 1 done during the last 125 years.” Mr Hazlett said another factor — the environmental lobby — was very successful in curbing exploration, production. refining, and i transportation. . The oil industry was . aware of its inability to gen-! ! erate sufficient earnings to| meet the huge capital outlays that would be needed to' meet future world energy [demands. Arab inoiicv “It is predicted that in! i 1980, the Middle East oil-! producing States will control! (about 80 per cent of the; [world’s total foreign ex-' change, and still have large; (untapped oil reserves. | “On the home front, legis-i Ration has brought home to! us that the energy crisis is a| [ fact of life. “Measures designed to cut! petroleum consumption have! been introduced. “Through public and pni- j vate conservation cam-! paigns, the message is get-; i ting across, but it is our bal-1 lance of payment figures that! spell out the story in large! •'letters.” i Mr Hazlett said that the; liSlo67m current account! ■ deficit experienced in the! year ended June 30 was; 1: largely generated by al .'S7l2m increase in current'

[payments, fuelled not only by plant and equipment pur--1 chase and materials restocking, but also by the oil bill. Fuel bill In 1967-68, New Zealand’s fuel bill was $62.4m. It 'steadily increased to stand at S96m in 1972-73. In 197374 it was s2o3m, and in ! 1974-75 8335 m, representing : about 20 per cent of New J Zealand’s private import bill. “O.P.E.C.’s meeting, which i will begin on Friday, is expected to boost prices by 10 to 15 per cent as at October JI,” Mr Hazlett said. ; “Informed sources believe iO.P.E.C. will take a moderate position between members favouring no rise, or J only a token one, and others (advocating a big boost of ;about 30 per cent. .! “This conciliatory gesture J means, in real terms, that jour oil cost could exceed s46om this financial year.” Mr Hazlett said oil was a finite resource, and experts predicted that production must decline by the late 1980 s. j At present, the world [depended on oil and natural [gas for two-thirds ot its energy needs. “Our hopes [for the long-term future lie ;in our discovering" alternative sources of energy,” Mr (Hazlett said. “Quite simply, lithe world is .running out of 'oil.”