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We need to deal with our ever increasing demand for energy before crippling oil prices crucify the economy.

As consumers our lives are becoming increasing dependent on high usage devices such as dishwashers, air-conditioning units, and the automobile. In fact according to the DTI we use 11.8% (adjusted for temperature) more fuel than in 1970 – equivalent to 25m tonnes of oil a year.

While industry has reduced consumption by 53% (see the collapse of primary and secondary industries), domestic and logistical usage has spiralled. Domestic usage is now 30% greater than 35 years ago and transport has seen a jump over the same period of around 98%.

How do we generate most of this power? Primarily through the burning of fossil fuels which are beginning to become more expensive and scarce as demand grows.

Last year the UK became a net importer of fuel for the first time in a decade. This troubling news arrives at a time when emerging Asian economies are consuming oil at record levels. High prices within the commodity markets are pressuring manufacturers to reduce labour costs; this has led to labour outsourcing and the scaling back of production operations in expensive western countries.

These figures point to one obvious objective, to reduce consumption. Progressive measures such as the recent car tax reform will go someway to temper the rapid thirst for oil. We should also introduce restrictions on household consumption to encourage energy saving technology and contemplative usage. We need radical measures to counter extreme growth in energy demand.

We also desperately need to reduce our dependence on unstable oil producing regions, where our oil revenues help finance terrorist groups and fundamental teachings, outlined in my previous post.

Few doubt that Britain is about to hit a recession caused by the slow down in the housing market. Retail and service sectors have been artificially stimulated by increased consumer credit financed through property sale and other forms of equity liquidation. The pressure on the UK to increase its balance of trade will never be as important (crippling fuel imports will not help).

With rising prices caused by the squeeze on oil, and poor productivity; the UK could well find itself with a nasty dose of Stagflation. This would kill off the remaining manufacturers and throw the economic stability we hold dear into turmoil.

What to do?

While we must reduce emissions and achieve our Kyoto commitments - something which looks increasingly unlikely, we must also remain competitive and ensure we do not fall too far behind our competitors.

Renewable energy - while preferable – remains expensive and inefficient; can we really afford to write off the Nuclear Option? The answer sadly in the short/medium term is No.

We must realise that Nuclear energy is the logical energy source while alternative solutions are pioneered and perfected. The UK has to remain competitive if it is to have any future within the global marketplace.

So it is with a dose of reality and sadness that this ‘lefty’ welcomes the nuclear option.