A newly-released study on the Hong Kong-Zhuhai-Macau Bridge (HZMB) apparently forecast 42.8 billion yuan in economic benefits for Hong Kong following its completion in 2016.
It was forecast to carry 23,000 passengers that year with the number rising to 120,000 in 2035. A Chinese University academic was quoted in the papers as saying that the economic benefits could be even higher.
Now let’s put this in perspective.
A few months ago the International Energy Agency (IEA) released its World Energy Outlook 2008 report, in which it predicted a 6.7% annual decline in world oil production. This is significantly more than the rate it predicted in its 2007 report, which was 3.7%. IEA chief economist Fatih Birol attributed the difference to the fact that the 2007 figure was an assumption, while the figure for 2008 represented the agency’s actual finding after a study of 800 of the world’s largest oilfields.
Even with timely investment, production is expected to peak around 2020 – which is just 11 years from now, and only four years after the bridge’s completion. Peaking, of course, is not the same as running out, but unlike the recent recession-related drop in oil prices, it will mean a consistent upward curve for oil prices.
Now there’s something more. According to a peak oil report commissioned by the US Department of Energy and released in 2005, the report authors warned that “As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social and political costs will be unprecedented.”
By “timely mitigation”, the authors meant “ten years before world oil peaking” – which would be 2010, six years before the bridge’s scheduled completion! Furthermore, the report authors suggested that, to avoid global economic collapse, “a mitigation crash programme” should be started “20 years before peaking”.
That would be 2000 – which means we have already missed the boat. What’s more, not only are we not doing anything to mitigate the impact of peak oil, we are doing everything imaginable to exacerbate it by the measures being put in place to restart economic growth. And we haven’t even begun to look at the impact on climate change of this business-as-usual approach as well as the need to tap highly polluting sources, like Canadian tar sands, in order to keep this approach going.
In urban centres transport is the main user of oil and transport policy is therefore vital to economic sustainability, yet what is Hong Kong doing? Speaking at the Civic Exchange Energy Forum in September this year, Dr Richard Gilbert said that “only 14% of Hong Kong’s fuel consumption is for local transport, the rest is for maritime and aviation use…so the local transport system should be one of the most resilient in the world after peak oil.”
Yes but this mega bridge is designed to serve cross-border traffic, and it will be without a rail element, which would provide a more long-term solution to cross-border transport needs. Also, let’s not forget the push for the construction of a third runway at the airport. Airlines won’t like this, but even Richard Branson can’t develop an alternative fuel fast enough to save air transport and travel from the impact of peak oil. Even without that, congested air space and ecological concerns should mean the idea was shelved from day one, and yet, amazingly, it wasn’t.
Its impact on air travel means that peak oil will also strike a heavy blow on tourism, yet Hong Kong is pushing hard to increase tourism’s contribution to its GDP. So is the city being driven into a wall? Does our government have a Plan B? If not, is Hong Kong’s citizens geared to fend for themselves? Some forward-thinking Hong Kongers are already talking about setting up transition towns; we can’t get ready quickly enough.
The people behind a local website that was set up to alert Hong Kongers to the implications of peak oil stopped updating it a while ago, explaining that they deemed their work to have been accomplished. Well, obviously the situation is so dire they’ve had a change of heart, because the website is being updated once more.