In last month’s Global Farmer, I discussed the possibility that a minor conflict, or even just a few angry words on the South China Sea or in the Straits of Hormuz could cause Australia to at best ration petrol, diesel, AV gas and other fuels — or at worst, cause this country to grind to a halt within weeks. Why? Because our current fuel reserves, in January of this year stood at 22 days’ worth of petrol, 17 days of diesel and 27 days of total petroleum products.
And the problem for Australia is that they nearly all our fuel oils start as crude oil in the Gulf region before they go to Japan, South Korea, Singapore and Australia to be refined. If supply stops our reserves will barely last us for thirty days. After that everything, everything, not could stop, will stop! Think Venezuela.