[Peakoil-announce] AFR: Energy crisis prompts review

[Alex P]

It's now officially a "crisis", which is progress in itself.

Alex
O4O4873828

ACT Peak Oil discussion list
http://act-peakoil.org


------------- Forwarded message follows -------------

Energy crisis prompts review
2005 Oct 13
Feedback Fred Brenchley

...

The Howard government has called for an urgent review of energy
security, concerned about continuing high oil prices, terrorism, the
after-effects of Hurricane Katrina and Australia's refining capacity.

Industry Minister Ian Macfarlane has ruled out an expensive option of
stockpiling oil or petrol supplies, but is keen to encourage oil
refiners to expand capacity, asking Mobil to reactivate the Port Stanvac
refinery in South Australia.

In a separate move to ease dependence on Middle East oil, Mr Macfarlane
will pressure both the oil companies and the ethanol industry at a
meeting in Canberra today to support marketing to make ethanol-blended
petrol more appealing to motorists.

The meeting promises to be heated, with Mr Macfarlane having accused the
oil companies of increasing their refining margins in the recent petrol
price rises and the ethanol industry of not passing on to motorists the
lower prices of ethanol-blended petrol.

Mr Macfarlane confirmed to The Australian Financial Review that he had
asked his department to bring forward a planned review next year of
Australia's energy security, and expected it in two months.

Ongoing high oil prices, terrorism and the Katrina effect were
"injecting hesitation in terms of future investment and production", Mr
Macfarlane said. Tourism was also being affected.

An energy security review in financial 2004 - when both oil prices and
the terrorism threat were lower - found Australia had about 50 days of
crude oil and petrol supply, with the potential to develop renewable
energy.

The government, Mr Macfarlane said, was not considering incentives for
oil refiners to expand capacity in Australia, but he did not rule it
out. China was the likely target for future refinery investment, with
Australian refiners handicapped by physical space and environmental
issues.

But as Australia took the Singapore price for petrol, any expanded
capacity in the region should produce at least some downward pressure on
prices, however small.

The quickest refinery expansion available to Australia was to reactivate
the 76,000 barrels-a-day Port Stanvac refinery, mothballed in 2003, but
Mr Macfarlane said even this could take up to two years.

Australia's seven other refineries can produce about 810,000 barrels of
petrol a day, with demand in 2003 running at 777,000 barrels a day.

"I'm sure oil companies have got the message that we are looking at
ensuring there is no long-term upward pressure on petrol prices because
of the lack of refining capacity," he said. "Refining capacity pushes
the price of petrol as much as anything else."
-- 
Ross McKay, Toronto, NSW Australia
"If ye cannae see the bottom, dinnae complain if ye droon"
- The Wee Book of Calvin