Overview

This project has piloted the Oil Vulnerability Auditing (OVA), an innovative approach that helps small local businesses to assess and quantify their risk from rising/fluctuating oil prices, then understand potential solutions and take timely action. The process was developed by the University of Liverpool and is being trialled in Totnes. For information on using OVA in other transition places, please contact the University of Liverpool directly.

The Transition Network is currently developing its own set of services and tools that will help businesses and other organisations to reduce their oil reliance and build resilience.

For more information about how we can help your own organisation with transition, please contact economicsandlivelihoods.totnes@transitionnetwork.org.

This projectwas run by the Economics & Livelihoods Group and more detail is below...

Approach 

In summary, the OVA process takes one or two key products or services of a business, and then analyses the activities and resources that are required to make the product and/or deliver the service. Each activity and resource is then costed and assessed to see how much 'oil reliance' there is. For example, oil could be used in a raw material, to keep a machine lubricated, to deliver goods to customers or to provide heat directly to a manufacturing process.

This analysis allows a business to understand in monetary terms where their biggest risk areas, are in terms of a changing oil price. Different oil price models can be applied to see how risk may change in the future. Once the risks are understood, and the business decides that action is warranted, then 'solution themes' can be explored, such as substitute energy sources or materials. Finally, an action plan will be produced to help each business to address the risks and take the appropriate actions.

The OVA process takes about 5 days in total from the OVA practitioner, and about 2 days time from the business as well as disclosure of business and financial information (confidentiality agreements are put into place).

Current status, news & updates

The following 4 local businesses have worked with us on this project:

• Coloursworks Print & Design
• Rumour Bar & Restaurant (01803 868682)
• Totnes Kayaks
• Pedricks Removals & Distribution

A summary of outcomes so far have been issued as OVA Update 2 for Totnes Kayaks, and OVA Update 1 for Rumour and Colourworks.

Need for project

The general consensus is that peak oil will occur by about 2010. As world oil production peaks, oil price and its volatility will increase dramatically against a backdrop of rising demand for declining supplies. Business risk will increase significantly, not just in terms of distribution and employee/customer travel costs, but also due to the oil embedded in the wide range of everyday manufactured products. Therefore it is critical to the success of TTT that the business community is fully engaged with energy descent planning.

Anticipating and addressing an organisation’s oil vulnerability now will enable timely corrective action. Basic energy efficiency and resource minimisation are fundamental to successfully addressing oil vulnerability, as is full consideration of renewable energy alternatives. 

Project aim & objectives

Aim: to increase business resilience through assessing exposure to the rising oil price, and identifying viable potential solutions.

Objectives:

• to deliver OVAs for 4 Totnes businesses that are representative of the local business community sectors
• to support the businesses with formulating and delivering action plans
• to communicate findings with the local (and wider) business community
• to involve partners who can deliver sustainability services to local businesses (ideally services that are funded e.g. Envirowise, Envision, RE4D) 

Outputs

This project will produce:

• For each business: a detailed report and a summary presentation giving results of the OVA: i.e. which activities/resources are most vulnerable to oil (quantified) and why, a detailed cost analysis & complete resource list, analysis of key products/materials/services in terms of direct/indirect link to oil price, potential solution themes and an action plan. Note that these outputs will not be made publicly available due to business confidentiality issues.

Potential Benefits

• Coverage of some key local business sectors
• Reduced oil reliance (qualitative measure)
• Reduced business risk (qualitative measure)
• Carbon reduction (# tones CO2) – from switch to RE, energy efficiency, fewer oil based products etc. Possibly through involvement of partner orgs.
• Resource reduction (cost savings) – from efficiency improvements, waste minimization etc. Possibly through involvement of partner orgs.
• Beginnings of a more supportive, engaged, sustainable business community (# businesses in Business Resilience Group / attending events).
  

Partners

• University of Liverpool – Oil Depletion Impact Group
• Totnes Chamber of Commerce
• This programme also aims to signpost businesses to other local support partners such as RE4D (RE), Business Link (support and advice), Envision (energy efficiency etc), Envirowise (Waste) and so on.