UK 'faces oil crisis in next five years'

29/10/2008

The UK could be plunged into an oil crisis within five years if prices continue to fall, the Peak Oil group has warned.

According to the group, falling prices will encourage oil-producing nations to limit supplies, thereby potentially creating a sharp shortfall in availability.

The availability of other derivatives such as DERV, heating oil, red diesel and bunker fuels could also be affected.

Speaking on BBC Radio 4's Today programme, Jonathan Leggett, chairman of the Peak Oil group, explained: "When [suppliers] fail to meet demand, many countries will experience this as an energy crisis. Some will experience it as an energy famine, as producers start to withhold exports."

However, he insisted that by responding to this threat early, it could be circumvented.

Mr Leggett urged politicians to take concerted action protect us from a potential oil crisis.

In response to falling oil price, the Organisation of the Petroleum Exporting Countries last week announced that it would cut production by 1.5 million barrels of oil per day.