[Download and read this report (PDF) at the LGA site or here.]

Predicting the price of oil is a slippery business. In summer 2008 the price of a barrel peaked to almost $147 per barrel. More recently the price has fallen back around $50 per barrel. So was the high peak in prices a temporary blip? Or do we need to prepare for an era of higher oil and energy prices? Within the current financial climate, how do we frame this trend against one of the most significant challenges we face - climate change?

In the future all sectors of the economy are likely to be affected to some extent by the end of the era of cheap oil. But the effect on the transport sector will be greatest because it is so heavily reliant on liquid fuels.

What does this mean for local authorities?

There is growing consensus that councils should be leading the national effort to tackle climate change. Councils can therefore take strategic action to reduce transport related carbon emissions (a major source of climate change) which can in turn address some of the impacts of oil price oil price volatility. This timely report therefore:

• Analyses the evidence and theory surrounding the debate on oil price volatility.
• Makes key recommendations to councils about the practical steps they can take to adapt both their own operations and help business and householders.
• Signposts some of the tools, organisation(s) and resources that can offer further support.
• Offers a number of case studies from local authorities (nationally and internationally) who are adopting innovative ways to help reduce the pressure on their budgets from spiralling fuel costs.

The report concludes with specific recommendations to central government about how it can help local government respond to the challenges and opportunities. This includes:

• Dismantling the bureaucracy behind transport funding and transport project appraisal,
• Empowering councils to rapidly improve bus services.
• Reforming the current system of public bus subsidies for buses to help fight climate change, provide better bus services and give better value for money to the tax payer.

This information will be applicable to all member and office communities, not just those focused on environment or transport issue.