Not since the 1970’s has the developed world looked so hard at its energy policies.  Crude oil prices have reached $30 per barrel again and transport costs are soaring.  Across Europe demonstrators have threatened the democratic process.  The media has roped in all the usual suspects and asked all the usual questions.  Unfortunately, we seem to be accepting the usual answers from the old fossils in high places.  It is time for a fresh approach, for the current situation is quite different to that of the 1970's. 

Attention has focused on two issues:  the production of oil and the level of taxation.  It is generally accepted that greater oil production would bring down prices, and although this move would add to global warming, that is what governments are calling for.  Taxation accounts for an enormous percentage of the final cost of fuel (75% in the UK), and that is what has attracted the wrath of the demonstrators.

The taxation issue is complex.  High fuel taxes might help with the reduction of inner city congestion and exhaust emissions, and if they were eased then taxes elsewhere would have to rise.  But with the computing power now available to central governments tax complexity could be reduced.  It might help the democratic process if we could see exactly how taxes match with public expenditure. For example, if the taxation raised from road fund licensing and fuel simply covers the cost of road improvements there can be no legitimate complaint from hauliers. 

The energy aspect is actually easier to comprehend.  European nations are dependent on oil producers and oil companies.  Generally, the producers and oil companies are quite rich.  But since the 1970’s alternative strategies have become more realistic, and with commitment we could change the status quo.  The first question should be: ‘how much are we prepared to do for change?’

European nations are responding with varying levels of enthusiasm to the calls for cleaner energy embodied in the Kyoto agreement.  Wind power and solar energy are beginning to make a contribution to electricity generation, and education on energy efficiency is helping to restrict demand, but road vehicles are still almost entirely dependent on petrol and diesel. 

For centuries the European economy was based on agriculture, and some two hundred years after the industrial revolution agricultural policies have yet to come to terms with industrialisation.  There is still an imbalance between agricultural earnings and industrial earnings, and the old economy is propped up with a combination of subsidy and set-aside.  Yet our agricultural heritage offers an alternative to our dependency on the oil producers and the oil companies.

In various parts of the world experiments have taken place with crop derivatives serving as fuel in road vehicles.  In Brazil sugar cane has been used successfully, and in Sweden, rape seed.  RME (Raps Methyl Ester) is a straight substitute in modern diesel engines, in isolation or mixed with diesel.

It is time we dealt with the problem, rather than its consequences.  We should bring our set-aside farming hectares back into production and eliminate our dependency on fossil fuel oil.  We would no longer be hostage to the oil companies, we would enrich the economy of the countryside, and we would be creating a cleaner environment.  How do we make the old fossils listen?