The recent ASPO/SEAI event, which was headlined by a presentation from the IMF on Chapter 3 of their April 2011 WEO, has prompted some further thinking on the issue of Ireland’s strategy for risk management and resilience building. Probably the most important statement by Dr. Kumhof was
If there is a non-negligible risk of future oil scarcity in the near term, then it would be negligent not to manage the associated risks.
Dr Kumhof presented a wealth of very useful information, and more importantly, an approach to understanding our economy’s dependence on energy and oil in particular, that needs to be repeated for Ireland. Below are some initial thoughts using headline data from the IMF and SEAI.
The chart above shows total oil consumption in Ireland on energy related activities (95% of all oil used) [source]. Clearly, the lions share goes into Transport, although Residential use is also substantial.
A closer look at the Transport sector demonstrates that private cars are the single largest consumers. Consumption by rail and public passenger services is paltry. ‘Unspecified’ and ‘Fuel Tourism’ are remarkably significant and will be looked into further in future research.