The coming energy crisis

March 12, 2026

I am grateful to Eugene Doyle for spelling out the details of the coming energy shock arising from the effective closure of the Strait of Hormuz. It’s a case of batten down the hatches, though I’m not sure the Albanese government fully understands the gravity of the crisis at hand. Energy analyst Matt Mushalik wrote to his local federal MP Jerome Laxale recommending or noting the following: (1) Reduce or stop permanent migration. Every migrant will increase the length of petrol lines and demand for goods in shopping centres. (2) Diesel is most important. Government must think of priorities. Agriculture, transport of food to cities is #1 priority. Diesel for export coal mines and trains should come last. (3) Do not waste any more funds on the 2nd Sydney Airport and the Metro going there. (4) Abandon your permanent growth narrative. (5) Do not start any big projects like High-Speed Rail. The solution is electric night trains between capitals but that should have started under Howard and Rudd (6) Prepare to bail out Transurban as traffic will go backwards. There might be a credit crunch. (7) NSW may have to restrict usage of Opal cards if motorists switch to rail.