Senate must back Greens' fuel inquiry

Case grows for thorough review

Forecasts of a massive rise in world oil demand and the impact high oil prices are already having on the national economy strengthen the need for a Senate inquiry into Australia's future oil supply, Australian Greens energy spokesperson Senator Christine Milne said today.

"The International Energy Agency (IEA) has just announced that world oil demand is likely to rise 50 per cent in the next 25 years," Senator Milne said in Canberra.

"IEA executive director Claude Mandil has acknowledged this sort of growth in oil demand will lead to an unsustainable future.

"This forecast follows the September quarter CPI figures in which fuel prices pushed up inflation and this week's comments by the Reserve Bank of Australia that:
'if oil prices instead were to continue rising, CPI inflation would be higher and, should such a situation persist, it would increase the likelihood of significant second-round price effects and increases in inflation expectations'.

In recent weeks there have been reports almost daily about how higher oil prices are affecting the domestic economy.

"Clearly, the government and opposition need to support the Greens proposed inquiry into Australia's future oil supply and alternative fuels.

"We cannot afford to hope that more oil fields are discovered or wait to see if the market will somehow solve the impending crisis."

Senator Milne's proposal for an inquiry will be debated in the Senate in the next sitting week.

Source - Australian Greens Media Release