Falling oil production 'worse than terrorism'

30 October 2008

Falling oil supplies poses a more serious threat than terrorism, a group of businesses has warned.

The group, which included Scottish and Southern Energy, Virgin Group, Yahoo and Arup, said that the dwindling oil output could have devastating effects on families all around the world.

Despite the International Energy Agency's prediction that production from the UK's North Sea will have dropped significantly by 2030, the group said the decline will come much sooner.

Lower production will lead to higher demand and soaring prices which could pose a "grave risk" to the economy as some families will be unable to afford home heating oil and petrol.

"Risks to society from peak oil are far greater than those that tend to occupy the government's risk thinking, including terrorism, climate change and the credit crunch," it said, reports Mirror.

The companies urged the government to develop a national energy plan to increase investment in renewable and more cost-efficient energy.

Oil prices rose again today with Brent crude reaching $66.90 (£40.35) and US crude $69.56 per barrel.

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