In a bid to boost Australia’s alarmingly low domestic fuel stocks, the Australian government is negotiating with the Trump administration to buy millions of barrels of oil from the US’ tightly guarded fuel reserve.
“The Government has undertaken this new initiative since the election to ensure that we continue to deliver increased security for Australians,” Energy Minister Angus Taylor was quoted as saying to The Sydney Morning Herald.
This follows the publication of a report by the Maritime Union of Australia in late June, raising concerns on the country’s extremely low liquid fuel reserves.
Australia and the US have a standing deal that allows them to boost immediate fuel levels in return for an equal amount of higher quality oil down the line.
Currently, the country has enough petrol and crude oil to last 28 days, well below the 90 days it is obliged to store under an agreement with the International Energy Agency.
While negotiating with the Trump administration, the Morrison government is also pushing for a major rewrite of the aforementioned treaty.
Mr. Tailor namely eyes a change where oil stock owned by Australia and being transported to the mainland can count towards overall supply – especially ships just days away from unloading at Australian ports.
The government launched a review of Australia’s fuel security in mid-2018, but its findings have not yet been released.
