The Audit identified new demand in the larger mining states as the most critical area for petroleum infrastructure.
Investment in new import infrastructure to ensure continued availability and reliability of supply will be driven by the private sector. The Audit identified an increasing reliance on imported crude oil and petroleum. The number of petroleum refineries has been falling over recent years, with the remaining refineries potentially closing in the near future.
This trend may negatively impact the certainty of supply and raises energy security issues that merit a wider national debate.
Issues for consideration include:
■ the decline in domestic production of crude oil (suitable for Australian refineries) which will increase the requirement for importing crude oil in the future;
■ the closure of three Australian refineries, which necessitates further investment in petroleum product import terminals to meet growth in demand; and
■ as a participant in the IEA 1974 International Energy Program, Australia is obliged to hold stock levels equivalent to at least 90 days of net imports. Australia does not enforce this obligation on oil companies.
Audit finding 68. Australia's dependence on imported fuel has increased. The current arrangements for managing petroleum reserves and ensuring energy security deserve wider public policy consideration. |