Gulf of Mexico spill threatens UK economy

UK business leaders warn that more urgent action is needed from government to address the threat of Peak Oil following the Gulf of Mexico oil spill.

In a briefing note published into the impact of the oil spill, the UK Industry Taskforce on Peak Oil and Energy Security (ITPOES) highlights that the regulatory ramifications are likely to see spare capacity reduced and rising oil prices impact the UK within the next five years.

The Taskforce calls on the new Coalition Government to work together with industry to develop a contingency plan that addresses the risk of peak oil and helps reduce the UK’s dependency on oil by speeding up the switch to alternative energy sources.

The update, Peak Oil – implications of the Gulf of Mexico oil spill, authored by Arup, highlights the increasing importance of deepwater drilling to global oil supply.

"The serious issues highlighted by the Gulf of Mexico spill serve to underline the vulnerable state of future oil supplies. The UK needs to prepare for an era of expensive oil, and this means we must step-up our commitment to reducing dependence on oil. This is particularly true in the area of transport, where recent budget reductions have already begun to dilute earlier plans to encourage low-carbon vehicles."

– John Miles, Arup Chief Executive, Energy, Resources and Industry

The Taskforce is calling on the Government for swifter action to help the UK switch to more sustainable energy sources and reduce the nation’s dependency on oil. The group recognises that a series of low-carbon initiatives are in place but believes that the impending oil crunch demands that mobilisation of these technologies and tactics be significantly speeded up.

"The energy issues facing the UK are complex and there are so many potential risks to the global outlook for oil production that our Government must take the problems around Peak Oil very seriously. This year’s Gulf of Mexico disaster has increased the chances of an 'oil crunch' in the coming decade."

 – Richard Branson, Founder of Virgin Group

Kingfisher and Buro Happold are the latest companies to join the growing Taskforce which includes Arup, Solarcentury, Stagecoach Group, SSE and Virgin Group.

• Briefing note 'Peak Oil – implications of the Gulf of Mexico oil spill' (peakoiltaskforce.net)