Australia’s Fuel Crisis: Expert Warns Drilling Alone Won’t Save Us as 71% of Aussies Demand More Domestic Oil and Gas Production
- Australians are overwhelmingly backing increased domestic oil and gas production as conflict over the Strait of Hormuz continues to disrupt fuel supplies.
- Expert warns that drilling alone won’t solve the crisis, and a broader energy strategy is needed to ensure national security.
- Australia’s heavy reliance on imported fuel has left the country exposed, with just 4% of transport fuels currently produced from Australian oil.
- Calls for a comprehensive national energy security assessment as the last review was conducted 15 years ago.
Australia is facing a fuel crisis, and the solution, according to the majority of Aussies, is simple: produce more oil and gas at home. A new poll has found that 71% of Australians support increasing domestic fuel production, with just 8% opposed.
But while the idea of drilling for more oil and gas may seem like a silver bullet, experts are warning that it’s not that straightforward.
As the conflict over the Strait of Hormuz continues to disrupt fuel supplies, Australians are growing increasingly concerned about the country’s reliance on imported fuel. The government has been under pressure to act, but so far, no concrete solutions have been put forward.
The poll, conducted by Freshwater, found that majorities of both Coalition and Labor voters back increased domestic production, with even 57% of Greens voters supporting the move.
However, Australian Institute of Energy fellow John Blackburn is cautioning that drilling alone won’t solve the crisis.
“We’ve been caught out, pretty unprepared for the situation we’re in, and they’re saying, well, hang on, we know we’ve got a lot of gas, why aren’t we using it?
Why don’t we look for more oil?” Blackburn said. “That should be on the table as an option, but it’s not the only option, and it’s not the solution to the problem.”
Blackburn argues that Australia needs a much broader strategy to ensure national energy security.
“What’s missing in Australia is that overall plan of how do all these pieces in our energy system come together, not just more stocks or just go and get a bit of oil,” he said.
He believes that a multi-pronged approach, including renewable fuels, bioenergy, ethanol, gas-to-liquids technology, and domestic oil and gas production, is needed to protect Australia during a major fuel crisis.
But why isn’t Australia already utilising more of its own resources? The government points to mining companies returning licences because operating costs in Australia are too high.
Blackburn acknowledges those commercial realities but argues that resilience needs to become a national priority. “We need to consider paying that extra amount to make sure we can find more oil and gas that we can control ourselves,” he said.
Blackburn is calling for a comprehensive national energy security assessment, noting that the last review was conducted 15 years ago under a Labor government. He warns that Australia’s logistical weaknesses remain a major concern.
“Even if we’re producing all this extra stuff ourselves, if we can’t have control of how it’s moved around and shipped, which we don’t have, then we’re not going to achieve too much because you can’t move it by rail in Australia now.
We’re down to two refineries, and we have no ships,” he said.
Analysis: What This Means for Australia
The warning comes as pressure mounts on the federal government over Australia’s heavy reliance on imported fuel.
With just 4% of the nation’s transport fuels currently produced from Australian oil through Australian refineries, the country is exposed to the whims of global markets.
Security analysts say that this lack of self-sufficiency poses a significant threat to national security, and that a more diversified energy mix is needed to ensure the country’s resilience.
Law enforcement insiders warn that the current crisis highlights the danger of relying on low-cost imports without considering energy security. “There’s a very high cost to cheap when you’re in a crisis,” Blackburn said.
“So it is worth us considering paying that extra amount to make sure we can find more oil and gas that we can control ourselves.”
Industry observers believe that the current crisis is a wake-up call for Australia to rethink its energy strategy. “It’s not necessarily about the cheapest source, it’s about the most resilient source, because without energy we stop,” Blackburn said.
As the country navigates this crisis, one thing is clear: a more comprehensive and diversified energy strategy is needed to ensure Australia’s national security and resilience.
