Cairns News Exclusive
Australia has no oil or fuel stored in the United States of America or anywhere else for that matter – what we have on hand across the nation is all we have. Our reserves were sold by then Liberal Energy Minister Angus Taylor in March 2022.
Australia’s emergency oil stockpile, purchased in 2020 to meet International Energy Agency (IEA) obligations, was stored in the United States Strategic Petroleum Reserve (SPR) along the Gulf of Mexico. The crude oil was held in underground salt caverns across four sites in Texas and Louisiana
The reserve of 1.7 million barrels has gone, released onto the international market in 2022 and none has been purchased to replace it.
Ampol has expanded its global search for alternative crude oil sources by turning to the United States as it seeks to shore up supplies amid Australia’s mounting fuel crisis, while also revealing that it will delay a maintenance shutdown of its Brisbane refinery.
Sale documents obtained by Cairns News reveal our US oil reserves were placed onto the international market and absorbed by usual buyers.
Energy Minister Chris Bowen said Australia no longer keeps oil reserves anywhere overseas, they are now stored in Australia and will be insufficient for normal use which is why Ampol is sourcing alternate supplies.
“But the fundamentals are good in that Australia has a good supply, and importantly, speaking to the industry, I have confirmed that every single expected delivery of petrol, diesel and jet fuel has arrived on time, on schedule, as expected,” Mr Bowen said.
“So at this point, while there are challenges ahead, no doubt about it, Australians can be confident that the rules put in place in 2022 to ensure that Australia has a stock of petrol and diesel on hand here in Australia, not in Texas or Louisiana or anywhere else, on hand here in Australia, puts us in a good position.
“We enter this international crisis well prepared, as well prepared, better prepared than we have entered similar crises, certainly in the lead-up to the 2022 energy crisis caused by the invasion of Ukraine, much better prepared now than we were as a country then.”
Last week six fuel shipments planned for Australia and due after mid-April were cancelled or deferred.
The energy minister says about 74 others are still expected, and that while there may be “bumps” due to the war in Iran, supply is secure.
The federal government is confident that fuel supplies will arrive largely as scheduled until mid-April, and there remains at least as much supply in Australia as there was in-country before the outbreak of war in Iran.
“We still have two refineries working full pelt … and we also have the boats continuing to arrive, and the refiners and importers working very closely with government to replace those six being cancelled or deferred,” Mr Bowen said.
Sale contracts in 2022 for Australia’s US supply state:
‘Agree to the sale of oil held in the United States (US) Strategic Petroleum Reserve (SPR) under Section 40A of the Liquid Fuels Emergency Act 1984 (LFE Act) to respond to the International Energy Agency’s (IEA) call for collective action.
Key Points: 1. The IEA issued a notice of activation of a collective action on 1 March 2022 (Paris time), calling participating countries to meet their allocation obligations under the IEA Agreement and supply 60 million barrels (mb) of oil to the market. The IEA action is being taken to stabilise the oil market as a result of the Russian invasion of Ukraine.
2. At the meeting, Minister Taylor confirmed Australia’s willingness to participate in the collective action. Minister Taylor has been briefed on Australia’s plan to contribute by offering for sale all of the Government owned crude oil held in the US SPR (MS22-000325 refers).
3. The IEA has calculated Australia’s contribution to the response plan as 1.543mb. The IEA has also asked countries to consider pledging 25 per cent more than their calculated share.’
The sale documents were signed March 17, 2022 by Energy Minister Angus Taylor in the final days of Morrison Liberal government which went to an election on May 21, 2022.
Industries nation wide had better brace themselves for fuel rationing and a possible fuel drought by mid-April if consumption continues at the present rate.
Decades of political ineptitude, crippling environmental regulations, Labor and Green’s fatal bent for renewables and hate of fossil fuel has brought the economy to this dangerous junction where the country will be shut down due to lack of oil refineries and an outdated distribution network. Come on in China but bring your own fuel because Australia runs on diesel.
