Responsible development of new fuels such as diesel and jet fuel derived from oil shale can provide greater fuel security for Australia, and address our nation’s growing reliance on fuel imports.
The heavy transport fuel sources QER is developing can help keep Australia on the move, taking food from the farm to the supermarket, medical supplies to hospitals and pharmacies, and bolster fuel supplies for our defence forces and emergency services.
Australia’s production of oil and condensate is forecast to decline from 183 million barrels in 2008 to 83 million barrels in 2030. At the same time as production is declining, Australia’s requirement for oil is forecast to grow from 341 million barrels in 2008 to 474 million barrels a year by 2030. The long term consequences for Australia of this growing gap between demand and supply could be very significant if action is not taken to address it in the very near future. This graph highlights the growing gap between Australia’s increasing use of oil, and our ability to be self-sufficient in producing the oil we need.
Oil usage in transport
The transport sector, which underpins much of our economy, is almost entirely reliant upon oil in order to function. Without oil, logistical transport systems would come to a halt, crippling the economy.
Transport sector growth is expected to continue to increase at the rate of 1.5 percent per annum. The IEA anticipates approximately 95 percent of energy used for transport will continue to be provided by oil for several decades into the future.
As highlighted in this graph, road transport accounts for around half Australia’s oil usage.
Oil refineries in Australia
Refineries produce a range of petroleum products, specific to each refinery's configuration, the type of crude oil processed and the demand profile.
Australian refining capacity has declined over recent years due to a number of reasons. Australia’s refineries are relatively small when compared to other large refineries in our region.
The Federal Government’s Energy White Paper, released in 2012, highlights the challenges facing Australia’s oil refining industry.