• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 40 mins Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 3 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 5 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 23 mins Let’s Try This....
  • 2 hours New Aussie "big batteries"
  • 18 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 4 hours China to Impose Dictatorship on Hong Kong
  • 6 hours 60 mph electric mopeds
  • 11 hours Iran's first oil tanker has arrived near Venezuela
  • 13 hours Nothing can shake AMLO’s fossil-fuel fixation
  • 19 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 1 day Fed Says It Will Begin Buying Corporate-Debt ETFs on Tuesday

Australia Seeks To Stock Up On U.S. Oil Amid Gulf Spat

Australia is in talks with the United States for buying crude oil from the U.S. Strategic Petroleum Reserves in order to boost its own strategic reserves, the Sydney Morning Herald reports, quoting Energy Minister Angus Taylor.

According to the SMH, the country only has enough crude oil and gasoline to last it 28 days, which is substantially below the 90-day standard. The United States, in comparison, has enough oil to last 700 days.

"The government has undertaken this new initiative since the election to ensure that we continue to deliver increased security for Australians," the Australian official said.

The strategic reserve problem is not new. Media reported last year stockpiles of liquid fuels were much below the international standard. This should hardly be acceptable for a country overwhelmingly dependent on imports of liquid fuels, at up to 90 percent of the fuels it consumes.

Interestingly enough, the negotiations with the U.S. would not involve any actual transfer of crude into Australia. Rather, Canberra is seeking to secure access to the U.S. SPR, distributed across four locations along the Gulf Coast.

"The whole point of this is to minimise costs," Taylor told ABC. "What we don't want to do is establish a physical reserve at very high cost in Australia and pass on that cost to Australians at the bowser."

Related: Mexico Set To Tap $6.3B From Oil Fund To Plug Budget Shortfall

The issue is potentially urgent: Australia relies on Asia for most of its fuel imports and Asia in turn relies on Middle Eastern oil to produce the fuels. With the growing tensions in the Middle East, the Australian government is getting increasingly worried about the security of fuel supplies.

"Australia's reliant on traffic through the Strait of Hormuz for a percentage of our oil supply, so we're doing everything that we can do be a good government and be prudent to ensure a continuity of supply," Australia Defence Minister, Linda Reynolds said.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News