Oil and Diesel
Oil and Diesel is used predominantly in Australia, especially in the mining and resource sectors. Over 40% of Australia's diesel is imported, mostly from Singapore.
There are a heap of facts about the diesel price in Australia and how it is tied to Singapore and not crude oil prices at The Australian Institute of Petroleum. Clearly with increasing dependence on foreign diesel, it would be in Australia's long term economic interest to diversify its energy portfolio towards a sustainable energy mix, eventually powering all stationary and some non stationary industry with 100% renewable energy. This would be advantageous to Australia's energy security and long term prosperity with troublesome times ahead currently predicted.
As you can see by the crude oil chart below, oil prices have been going up this year despite a deceptive decline during the global financial crisis in 2008.
One thing which is imperative is a price on carbon. With recent BP oil spill causing environmental catastrophe, the price of oil addiction is coming into question.
Rio and BHP Billiton have joined a growing pool of companies asking for a price on carbon explaining that failure to do so will place companies at a competitive disadvantage in the future as the world accepts a global price for carbon.
It is hoped that through a carbon trading market, offsets from the major polluters such as oil companies, can help kick start the major sustainable energy industries which are currently pushed aside due to heavy government subsidy in the coal industry.