They’re the fuels powering the cars and trucks on our roads, to the planes and ships connecting Australia to the world. But with just two crude oil refineries left in Australia, we import about 90% of all those refined fuels – and conflict in the South China and East China seas has the potential to choke our supplies.
In the first analysis of its kind, the Department of Defence commissioned Richard Oloruntoba and colleagues to look at how a regional conflict could threaten Australia’s maritime supply chains. The researchers calculate a major conflict would threaten seas routes supplying 90% of Australia’s refined fuel imports: the petrol, diesel, jet fuel, marine fuel and more that we rely on.
Australia is a global outlier in not taking energy independence seriously. But as Oloruntoba and his co-authors write: “With China’s increasing military capability and belligerency, there is no longer room to be complacent about Australia’s lack of energy security.”
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Tim Wallace
Deputy Business + Economy Editor
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Richard Oloruntoba, Curtin University; Booi Kam, RMIT University; Hong-Oanh Nguyen, University of Tasmania; Matthew Warren, RMIT University; Prem Chhetri, RMIT University; Vinh Thai, RMIT University
Our analysis is the first commissioned by the Department of Defence on the specific threat of prolonged maritime supply-chain disruptions due to conflict in the South China and East China seas.
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