Mooted WA oil refinery ‘dinosaur technology’ amid clean energy transition, experts say
Summary
The Australian government plans to study the idea of building a new oil refinery in Western Australia, but climate and energy experts say it would not be profitable and would need government support. They suggest investing in renewable energy technologies instead, as Australia’s oil production is declining and the future focus should be on clean fuels.Key Facts
- The Australian government announced a $4 million early feasibility study for a new oil refinery in the Pilbara region of Western Australia.
- Experts say the refinery would be an example of "dinosaur technology" that is uneconomic and relies on government subsidies.
- Australia’s domestic crude oil production is falling fast and may stop within seven years without new discoveries.
- Currently, Australia imports about 95% of its fuel, with only 4% refined locally from Australian crude.
- A new refinery in WA would likely process mostly imported crude oil, not improving fuel security much.
- Six out of eight Australian oil refineries have closed since 2003 because they cannot compete with larger refineries in Asia.
- Experts recommend focusing government subsidies on renewable technology to produce zero-emission liquid fuels instead.
- The future of Australia’s liquid fuels should be based on renewable electricity rather than fossil fuels.
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