World on brink of energy crisis
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31/05/2008
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Daily News (Sri Lanka)
There may be a debate about the cause but there is no doubt about the effect: the world is on the verge of an energy crisis. The signs are everywhere. This week, Qantas boss Geoff Dixon said the airline would ground planes, cancel routes, slash jobs and freeze senior pay packets to combat rising jet fuel prices. Mr Dixon lamented that Qantas had "no control' over rising fuel costs - sentiments echoed by other airlines such as Air France KLM, which has flagged a sharp decline in operating profits. Motorists are also feeling unprecedented pain at the pump, with petrol prices hovering near the $1.60 a litre mark in Melbourne this week. The price of a barrel of oil hit a record $US 135 last week, more than double the price a year ago. And although the dollar value of the fossil fuel has softened a little in recent days to trade at US$ 126.62 yesterday, analysts warn that further increases are all but certain in the coming months. Oil doesn't just power cars, planes and industry, it is used in everything: plastic bags, sneakers, carpets, compact discs, Band-Aids, pen ink, toothpaste tubes, dishwashing detergent, painkillers, and even additives in canned food. From The Herald Sun, Australia