[sustran] fwd: Fall in World Oil Prices Triggers Overconsumption

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fowarded from the kabelvag discussion group on sustainable consumption.

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From: "Ajay Darshan Behera" <navnita at giasdl01.vsnl.net.in>
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Date: Mon, 31 May 1999 03:48:21 +0530
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Subject: [kabelvag] Energy Connections


" The price of a barrel of crude oil has dropped from about $20in early
1998 to about $10 -- the lowest in decades -- sparking acash crisis among
petroleum-exporting countries.   And on the flip side, the rise in oil
consumption is threateningto set off a greater demand for consumer products
such asgas-guzzling motor vehicles and high-energy home appliances.   If
current trends in energy and fossil fuel consumptioncontinue, by 2010
global energy consumption and carbon dioxide(CO2) emissions will have risen
by almost 50 percent above 1993levels, according to the report. In
addition, consumers are drivingmore, and are tending to buy less
fuel-efficient vehicles, in partas a result of low gasoline prices. "
  

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ENERGY: FALL IN WORLD OIL PRICES TRIGGERS OVERCONSUMPTION 

Thalif Deen , Inter Press Service English News Wire, 9th March, 1999. 


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UNITED NATIONS, Mar. 9 (IPS) -- The United Nations is worried
that a sharp drop in oil prices is triggering an overconsumption
of energy -- and a rise in demand for luxury cars and heavy duty
motor  vehicles.
   &quot;Current growth in energy consumption is driven in part by
declining oil prices,&quot; warns a 23-page U.N. report released
yesterday.
   The price of a barrel of crude oil has dropped from about $20
in early 1998 to about $10 -- the lowest in decades -- sparking a
cash crisis among petroleum-exporting countries.
   And on the flip side, the rise in oil consumption is threatening
to set off a greater demand for consumer products such as
gas-guzzling motor vehicles and high-energy home appliances.
   If current trends in energy and fossil fuel consumption
continue, by 2010 global energy consumption and carbon dioxide
(CO2) emissions will have risen by almost 50 percent above 1993
levels, according to the report. In addition, consumers are driving
more, and are tending to buy less fuel-efficient vehicles, in part
as a result of low gasoline prices.
   Last year U.S. consumers continued to shift from cars to sports
utility vehicles, vans and pick-up trucks, which are less fuel
efficient and more polluting than cars. Those trends in consumption
are outpacing improvements in fuel efficiency, the study says.
   The decline in oil prices also has resulted in sharp cuts in
government spending, including postponement of infrastructure
projects, in countries such as Saudi Arabia, Kuwait, Nigeria and
Algeria -- all of whom depend heavily on petroleum exports for
their foreign exchange earnings.
   Titled &quot;A comprehensive review of changing consumption and
production patterns&quot;, the report will go before a meeting of the
Commission on Sustainable Development Apr. 19-30.
   The study says that there is general agreement that further
increases in energy and material efficiency in production processes
will need to be combined with shifts in consumption patterns
towards good and services that are inherently less energy and
resource intensive -- if greenhouse gas emissions are to be
stabilized.
   Motor vehicles account for about 15 percent of global fossil
fuel consumption and CO2 emissions, and 80 percent of
transport-related energy consumption.
   Since the early 1970s, the global fleet of cars, trucks and
buses has been growing by 16 million vehicles per year, to a total
of some 630 million in 1994. &quot;If this growth continues, the world
will have one billion vehicles on the road by 2025,&quot; the report
says.
   Speaking on behalf of the 133 developing nations of the Group
of 77, Alison Drayton of Guyana said that overconsumption in the
North and poverty-related problems in the South are both
unsustainable. Therefore, structural changes are crucial in both
instances.
   &quot;In a world of globalization and trade liberalization, the
consumption patterns of developed countries strongly influence
those of developing countries,&quot; she told the UN Commission on
Sustainable Development last week.
   Any discussion of sustainable consumption patterns would not be
complete without a discussion of trade, investment, communication,
media, advertising and marketing.
   &quot;Information is the key to raising awareness on the range of
consumption options available, and enabling consumers to make
informed choices,&quot; Drayton says. &quot;We believe that there is also a
need for a thorough study of the role of media and advertising in
promoting unsustainable consumption patterns, and indeed, in
exporting them.&quot;
   Trade pressure from rich countries has also contributed to
unsustainable consumption practices in poorer countries. For
example, it is not unusual for developed countries to seek, through
various means, agreement on lower taxes on their exports to
developing countries.
   From a trade perspective, they might consider this to be a
justifiable policy. However, from the perspective of achieving
sustainable consumption patterns, argues Drayton, there are a
number of implications which have to be considered.
   The lowering of taxes on luxury cars, energy-wasting home
appliances and expensive imports from developed countries, will
have a definite impact on the consumption patterns of developing
nations.
   The U.N. report points out that developing countries, with 80
percent of the world population, currently consume about one third
of the world's energy. This share is expected to grow to about 40
percent by 2010, if current consumption trends continue.
   In most industrialized countries, on the other hand, there has
been continued progress in reducing energy and material consumption
per unit of production.
   The improvement in efficiency per unit of production, however,
has been offset by increases in the volume of production and
consumption, leading to continued increases in total energy and
materials consumed.
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