Fuel demand will only increase ahead of the 2010 Fifa World Cup™, says the NEEA's Barry Bredenkamp.

 Energy efficiency

Soaring fuel prices from now until after the Soccer World Cup means motorists in the market for a new car should buy fuel efficient models, says the National Energy Efficiency Agency (NEEA).

The NEEA’s message follows a report published by the International Energy Agency (IEA) on Monday, July 9th, that predicted an ‘oil crunch’ as global demand catches up with supply in the next five years.

Petrol is derived from crude oil, and the crunch will affect private and commercial consumers alike.

Earlier this week, Acting Operations Manager of the National Energy Efficiency Agency, Barry Bredenkamp said swapping gas guzzlers for fuel efficient models was the way to go.

Bredenkamp recognised that South Africans were car lovers, and many chose their car as a status symbol, but a fuel efficient model would say something equally important about the buyer.

“The price of a litre of fuel is only going to go one way – up.

“We know South African’s love their cars as a status symbol, but choosing a fuel efficient car is a symbol of progressive environmental awareness, and it will save the motorist money because he or she will be using less fuel.

“Motorists who choose big-engined cars are going to pay once for the car in the showroom and then heavily every time they fill up at the pumps,” Bredenkamp explained.

The IEA’s Medium Term Oil Report said demand for oil would increase by 2.2 per cent between now and 2012.

If the IEA predictions come true, high oil prices will coincide with the Soccer World Cup, further pressurising the national situation.

“South Africa should expect artificially high petrol prices during 2010. Putting the finishing touches to the stadiums, associated construction and simply more vehicles on the road will push demand to the limit. And we will have to pay for it for much longer than the four week tournament.”

In the, report - published on Monday – the IEA blamed rising prices on a volatile geo-political climate, especially in the Middle East, and lower output by Organisation of the Petroleum Exporting Countries (OPEC), which supply most of the world’s oil. It added that production from oil fields in non-OPEC countries were on a plateau and could actually drop in the next five years.

ENDS

Editors:
Currently, the IEA says 95.8m barrels of oil are needed every day around the world.

Department of Minerals and Energy figures claim Large SUV’s with 4.8l engines will release 8,870kg of Carbon Dioxide every 24,000kms. A 1.6l hatchback on the other hand will release 4,488, over the same distance.

The price of a barrel of crude oil is fluctuating around the US$75 mark.

The fumes from car exhaust are a major contributor of greenhouse gases – the culprit behind climate change.

The NEEA was formed from a directive from the Department of Minerals and Energy in 2006.

It was created as part of a broader strategy to reduce overall energy demand by 12 per cent by 2015.

The NEEA is a division within the Central Energy Fund – an organization set up to find the energy solutions that will meet the future needs of South Africa’s growing economy.

The overarching objectives of the NEEA are

  The prioritisation and recommendation of energy efficiency and DSM projects to be undertaken in the country.

  Identification and development of key strategies, to address the growing demand for energy in the country, including gas, electricity, liquid petroleum, etc.

  Stimulate areas neglected in terms of energy efficiency in the past, such as the transport sector.

  Develop and implement comprehensive annual ‘Energy Efficiency and DSM’ awareness campaigns, to assist the general public in making wise choices when purchasing energy-consuming equipment and appliances.

  Oversee the integration and co-ordination of training in energy efficiency currently undertaken by various stakeholders in the country. The Agency will also facilitate skills transfer, capacity building and the creation of additional jobs in the field of energy conservation.

  Oversee the integration and co-ordination of training in energy efficiency currently undertaken by various stakeholders in the country. The Agency will also facilitate skills transfer, capacity building and the creation of additional jobs in the field of energy conservation.

  Co-operate with persons, associations and institutions undertaking energy efficiency programmes in other countries, to ensure that international ‘best practices’ are adopted and applied in South Africa.