The following is a copy of an article in the October edition of Engineers Australia - the journal of the Institution of Engineers Australia. It is worth reading and I suggest that you could pursue your local parliamentarians to try to get something down about the situation. It is critical. I have not been able to verify the facts in this article but I have no doubts about the truths behind it
[LOWFUELWARNING
A bunch of tankers are anchored off Perths iconic Scarborough Beach. They have been there for months. It turns out that the are doing ship to ship (STS) transfers of crude oil and petroleum products to a smaller tanker which then takes the cargoes to the BP Kwinana refinery.
So I wondered, why are STSs being done off Perth all of a sudden? Then the penny dropped Australia has a chronic fuel security crisis. Current estimates are that we have about 25 days of petrol and 20 days of diesel . The flaw in this situation is our just in time supply chain all dependent on crude oil and petroleum productsshipped in from overseas to supply our domestic markets.
If this is interrupted, then in less than 3 weeks, everything would start grinding to a halt: all private and commercial road and rail transportation, food supplies, healthcare, sanitation and water treatment just to name a few.
Australia is a signatory to the International Energy Agency (IEA) which mandates that member countries should hold a 90 day liquid fuel reserve. Australia is nowhere near that level. Our reserves are the lowest of 70 OECD countries and the situation will get worse with the future of our four remaining refineries in doubt.
This is the solution to the problem? Shuttle crude and petroleum products into our ageing refineries? It is a piecemeal solution at best. It is also very dangerous. Here is Western Australia, STSs are being conducted just off our pristine beaches. The ships look to be inside port limits and a spill, even a small one will end up on our beautiful beaches.
Australia has an oil transportation, refining and storage crisis. We are wholly dependent on foreign flagged tankers for supply and distribution. No oil company has committed to closing any of the four remaining oil refineries in Australia but we now technically have only ONE oil refinery (Kwinana) working at full capacity. Caltex in Litton, Queensland is in shutdown and is unlikely to reopen. Exxon Mobil in Altona Victoria is likely to close a the end of this year and Viva Energy in Geelong has shut down its major portion of its refining capacity.
Storage is another matter entirely. The latest plan is to hold part of our reserve fuel in the US. That is like running out of fuel on the Nullarbor and saying Its fine, Ive got some jerry cans in Adelaide. The Government plans to spend $94 million storing fuel more than 12000 km away. How many storage tanks could be built for $94 million? We are living in troubled times and the government has a lot on its hands at the moment. But Scott Morrison has recently stated that Australias security is at the top of his list of priorities. Can he please put someone in charge of our energy portfolio who knows something about fuel security.]
-- Edited by erad on Thursday 15th of October 2020 08:20:55 AM
rgren2 said
11:11 PM Oct 14, 2020
Bit confused here, 230 days supply of diesel, but only 3 weeks (21 days) and everything grinds to a halt.
Whenarewethere said
11:11 PM Oct 14, 2020
Diesel is in a worse situation than petrol & the 25 days includes all fuel in private tanks in business storage & also includes lawn mowers & wipper snipers. The actual number of reserve days is in the region of 9.
erad said
08:22 AM Oct 15, 2020
Apology - 230 days diesel supply should read 20 days. I have corrected this in the original post. I need a good poof reader...
-- Edited by erad on Thursday 15th of October 2020 08:23:49 AM
travelyounger said
09:15 AM Oct 15, 2020
erad wrote:
The following is a copy of an article in the October edition of Engineers Australia - the journal of the Institution of Engineers Australia. It is worth reading and I suggest that you could pursue your local parliamentarians to try to get something down about the situation. It is critical. I have not been able to verify the facts in this article but I have no doubts about the truths behind it
[LOWFUELWARNING
A bunch of tankers are anchored off Perths iconic Scarborough Beach. They have been there for months. It turns out that the are doing ship to ship (STS) transfers of crude oil and petroleum products to a smaller tanker which then takes the cargoes to the BP Kwinana refinery.
So I wondered, why are STSs being done off Perth all of a sudden? Then the penny dropped Australia has a chronic fuel security crisis. Current estimates are that we have about 25 days of petrol and 20 days of diesel . The flaw in this situation is our just in time supply chain all dependent on crude oil and petroleum productsshipped in from overseas to supply our domestic markets.
If this is interrupted, then in less than 3 weeks, everything would start grinding to a halt: all private and commercial road and rail transportation, food supplies, healthcare, sanitation and water treatment just to name a few.
Australia is a signatory to the International Energy Agency (IEA) which mandates that member countries should hold a 90 day liquid fuel reserve. Australia is nowhere near that level. Our reserves are the lowest of 70 OECD countries and the situation will get worse with the future of our four remaining refineries in doubt.
This is the solution to the problem? Shuttle crude and petroleum products into our ageing refineries? It is a piecemeal solution at best. It is also very dangerous. Here is Western Australia, STSs are being conducted just off our pristine beaches. The ships look to be inside port limits and a spill, even a small one will end up on our beautiful beaches.
Australia has an oil transportation, refining and storage crisis. We are wholly dependent on foreign flagged tankers for supply and distribution. No oil company has committed to closing any of the four remaining oil refineries in Australia but we now technically have only ONE oil refinery (Kwinana) working at full capacity. Caltex in Litton, Queensland is in shutdown and is unlikely to reopen. Exxon Mobil in Altona Victoria is likely to close a the end of this year and Viva Energy in Geelong has shut down its major portion of its refining capacity.
Storage is another matter entirely. The latest plan is to hold part of our reserve fuel in the US. That is like running out of fuel on the Nullarbor and saying Its fine, Ive got some jerry cans in Adelaide. The Government plans to spend $94 million storing fuel more than 12000 km away. How many storage tanks could be built for $94 million? We are living in troubled times and the government has a lot on its hands at the moment. But Scott Morrison has recently stated that Australias security is at the top of his list of priorities. Can he please put someone in charge of our energy portfolio who knows something about fuel security.]
-- Edited by erad on Thursday 15th of October 2020 08:20:55 AM
I agree these supposedly over educated politicians who keep talking about national security you don't have to be ironstein to work out to be able to defend this great country of ours the armed forces will need fuel to run there equipment not solar and batteries I hope its not the case of its to late to do anything about it now yes put someone with brains in charge before it is to late.
Cheers
Jaahn said
09:31 AM Oct 15, 2020
Hi
Yes the planning of out national government is hopeless and lacks any vision or common sense. And the current plan to use Americas fuel storage and expect that in an emergency the current "leader" would actually let us have it is so stupid as to be unbelievable. Trump would just say NO that's ours now we need it. Scomo must believe in fairies.
You know it would even make more sense to plan to run vehicles on gas in our new "gas lead recovery". You heard it here first
Jaahn
-- Edited by Jaahn on Thursday 15th of October 2020 09:34:31 AM
Long Weekend said
05:01 PM Oct 15, 2020
One little known historical fact is that just before the outbreak of WWII the RAAF and Government established a series of what they called Inland Aircraft Fuel Depots around Australia. The first was at Ballarat alongside the then railway station of Canada.
There were thirty one (from memory) depots with up to four tanks each of around 200,000-gallons. They also had underground storage for the lead additive. Some of the depots were completed too late in the war and never had any fuel stored in them - one known to be at Gladstone in South Australia is so sign posted.
One famous depot was just to the west of Mildura - several years ago the owner converted the tanks to a house by using explosives to blast windows and doors through the concrete. It was featured in a TV show a number of years ago.
After the war some were handed over to the petrol companies while others were simply abandoned - such as at Northam in WA.
Maybe the Government should think about doing the same thing to meet what is likely to turn into an emergency.
Murray
-- Edited by Long Weekend on Thursday 15th of October 2020 05:06:40 PM
Aus-Kiwi said
11:08 AM Oct 16, 2020
Ahh sell it off make someone elses problem
!! Hang on ?? Security ?? What security ???
Tony Bev said
08:50 PM Oct 16, 2020
I think that it is well documented, that our leaders, do know of our oil shortage
It is a pity, (in my opinion), that in these days of near future high unemployment, our leader has previously said, that the Government is not in the business of running free enterprise, or words to that effect
It would be a good time time, to build some very large, and very deep, storage tanks, just to be sociable
anolphart said
04:22 PM Oct 26, 2020
"Storage is another matter entirely. The latest plan is to hold part of our reserve fuel in the US. That is like running out of fuel on the Nullarbor and saying Its fine, Ive got some jerry cans in Adelaide. The Government plans to spend $94 million storing fuel more than 12000 km away. How many storage tanks could be built for $94 million? We are living in troubled times and the government has a lot on its hands at the moment. But Scott Morrison has recently stated that Australias security is at the top of his list of priorities. Can he please put someone in charge of our energy portfolio who knows something about fuel security."
I think there is some confusion here. The $94 million was spent in taking advantage of the recent low cost of fuel and we are simply storing it in the US until it can be shipped here. It was never suggested that it be used for permanent stockpiling.
Jaahn said
08:04 PM Oct 26, 2020
anolphart wrote
"Storage is another matter entirely. The latest plan is to hold part of our reserve fuel in the US. That is like running out of fuel on the Nullarbor and saying Its fine, Ive got some jerry cans in Adelaide. The Government plans to spend $94 million storing fuel more than 12000 km away. How many storage tanks could be built for $94 million? We are living in troubled times and the government has a lot on its hands at the moment. But Scott Morrison has recently stated that Australias security is at the top of his list of priorities. Can he please put someone in charge of our energy portfolio who knows something about fuel security."
I think there is some confusion here. The $94 million was spent in taking advantage of the recent low cost of fuel and we are simply storing it in the US until it can be shipped here. It was never suggested that it be used for permanent stockpiling.
Comfusion ?? Read these reports from some time back ! I see the suggestion we will build more storage here as just fending off criticism and unlikely to happen in my lifetime.
The following is a copy of an article in the October edition of Engineers Australia - the journal of the Institution of Engineers Australia. It is worth reading and I suggest that you could pursue your local parliamentarians to try to get something down about the situation. It is critical. I have not been able to verify the facts in this article but I have no doubts about the truths behind it
[ LOW FUEL WARNING
A bunch of tankers are anchored off Perths iconic Scarborough Beach. They have been there for months. It turns out that the are doing ship to ship (STS) transfers of crude oil and petroleum products to a smaller tanker which then takes the cargoes to the BP Kwinana refinery.
So I wondered, why are STSs being done off Perth all of a sudden? Then the penny dropped Australia has a chronic fuel security crisis. Current estimates are that we have about 25 days of petrol and 20 days of diesel . The flaw in this situation is our just in time supply chain all dependent on crude oil and petroleum products shipped in from overseas to supply our domestic markets.
If this is interrupted, then in less than 3 weeks, everything would start grinding to a halt: all private and commercial road and rail transportation, food supplies, healthcare, sanitation and water treatment just to name a few.
Australia is a signatory to the International Energy Agency (IEA) which mandates that member countries should hold a 90 day liquid fuel reserve. Australia is nowhere near that level. Our reserves are the lowest of 70 OECD countries and the situation will get worse with the future of our four remaining refineries in doubt.
This is the solution to the problem? Shuttle crude and petroleum products into our ageing refineries? It is a piecemeal solution at best. It is also very dangerous. Here is Western Australia, STSs are being conducted just off our pristine beaches. The ships look to be inside port limits and a spill, even a small one will end up on our beautiful beaches.
Australia has an oil transportation, refining and storage crisis. We are wholly dependent on foreign flagged tankers for supply and distribution. No oil company has committed to closing any of the four remaining oil refineries in Australia but we now technically have only ONE oil refinery (Kwinana) working at full capacity. Caltex in Litton, Queensland is in shutdown and is unlikely to reopen. Exxon Mobil in Altona Victoria is likely to close a the end of this year and Viva Energy in Geelong has shut down its major portion of its refining capacity.
Storage is another matter entirely. The latest plan is to hold part of our reserve fuel in the US. That is like running out of fuel on the Nullarbor and saying Its fine, Ive got some jerry cans in Adelaide. The Government plans to spend $94 million storing fuel more than 12000 km away. How many storage tanks could be built for $94 million? We are living in troubled times and the government has a lot on its hands at the moment. But Scott Morrison has recently stated that Australias security is at the top of his list of priorities. Can he please put someone in charge of our energy portfolio who knows something about fuel security. ]
-- Edited by erad on Thursday 15th of October 2020 08:20:55 AM
Diesel is in a worse situation than petrol & the 25 days includes all fuel in private tanks in business storage & also includes lawn mowers & wipper snipers. The actual number of reserve days is in the region of 9.
Apology - 230 days diesel supply should read 20 days. I have corrected this in the original post. I need a good poof reader...
-- Edited by erad on Thursday 15th of October 2020 08:23:49 AM
I agree these supposedly over educated politicians who keep talking about national security you don't have to be ironstein to work out to be able to defend this great country of ours the armed forces will need fuel to run there equipment not solar and batteries I hope its not the case of its to late to do anything about it now yes put someone with brains in charge before it is to late.
Cheers
Hi
Yes the planning of out national government is hopeless and lacks any vision or common sense.
And the current plan to use Americas fuel storage and expect that in an emergency the current "leader" would actually let us have it is so stupid as to be unbelievable. Trump would just say NO that's ours now we need it. Scomo must believe in fairies.
You know it would even make more sense to plan to run vehicles on gas in our new "gas lead recovery". You heard it here first
Jaahn
-- Edited by Jaahn on Thursday 15th of October 2020 09:34:31 AM
One little known historical fact is that just before the outbreak of WWII the RAAF and Government established a series of what they called Inland Aircraft Fuel Depots around Australia. The first was at Ballarat alongside the then railway station of Canada.
There were thirty one (from memory) depots with up to four tanks each of around 200,000-gallons. They also had underground storage for the lead additive. Some of the depots were completed too late in the war and never had any fuel stored in them - one known to be at Gladstone in South Australia is so sign posted.
One famous depot was just to the west of Mildura - several years ago the owner converted the tanks to a house by using explosives to blast windows and doors through the concrete. It was featured in a TV show a number of years ago.
After the war some were handed over to the petrol companies while others were simply abandoned - such as at Northam in WA.
Maybe the Government should think about doing the same thing to meet what is likely to turn into an emergency.
Murray
-- Edited by Long Weekend on Thursday 15th of October 2020 05:06:40 PM
!! Hang on ?? Security ?? What security ???
It is a pity, (in my opinion), that in these days of near future high unemployment, our leader has previously said, that the Government is not in the business of running free enterprise, or words to that effect
It would be a good time time, to build some very large, and very deep, storage tanks, just to be sociable
"Storage is another matter entirely. The latest plan is to hold part of our reserve fuel in the US. That is like running out of fuel on the Nullarbor and saying Its fine, Ive got some jerry cans in Adelaide. The Government plans to spend $94 million storing fuel more than 12000 km away. How many storage tanks could be built for $94 million? We are living in troubled times and the government has a lot on its hands at the moment. But Scott Morrison has recently stated that Australias security is at the top of his list of priorities. Can he please put someone in charge of our energy portfolio who knows something about fuel security."
I think there is some confusion here. The $94 million was spent in taking advantage of the recent low cost of fuel and we are simply storing it in the US until it can be shipped here. It was never suggested that it be used for permanent stockpiling.
Comfusion ?? Read these reports from some time back ! I see the suggestion we will build more storage here as just fending off criticism and unlikely to happen in my lifetime.
https://www.smh.com.au/world/europe/fuel-deal-between-trump-and-australia-secures-crucial-backing-20191223-p53mbe.html
https://www.reuters.com/article/us-australia-oil-idUSKCN2240AA
https://www.news.com.au/finance/economy/australian-economy/australias-lack-of-fuel-our-national-security-achilles-heel/news-story/494ddda75ae802b007d085a7727566cb
Jaahn